A Generalist Appraiser must be Competent with Many Property Types
William M. Novotny ISA AM
Personal Property Appraiser
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Over thirty years of personal property valuation experience
From 1979 to 1999 Novotny was a full-time, Los Angeles antiques and personal property dealer with several stores. His 20,000 square foot general antiques store, which he opened in Glendale, CA in 1979, was soon filled with antiques, fine art (mostly plein air), native American and Asian objects, arts and crafts objects, general collectibles, a quarter million rare records and general household goods and residential contents. Novotny bought and sold the complete contents of many dozens of fine homes and apartments throughout Los Angeles during the 1980's and 90's. He purchased from local auctions on a weekly basis. He actively exhibited at major antique shows. Since 1989 he has been an active estate sale agent; he remains active as an estate sale agent. Novotny has been a full-time appraiser since 1993.
(Above) An 1860 antique electrotype copy after Jeremias Metzger
of a 16th century reticulated brass clock with
nine winding holes and multiple apertures on four sides, 12”
Norman Rockwell (American, 1894-1978)
Untitled, depicting a mock jury, signed and dated 1942
Some objects are unique, rare and very special. Experience with and study of a wide range of objects provide the appraiser with a basis to identify rare and important objects and to value objects that are common and ordinary. In each and every assignment the appraiser must be competent to develop credible assignment results for every object included in the assignment.The task is daunting.
A Limited View of the Universe of Objects Frequently Appraised:
Fired objects:
Novotny has bought, sold, collected, studied and appraised the types of objects in the above list for over 30 years.
In any given assignment clients may have certain property types for which Novotny is not competent, such as stamps, gems and jewelry, machinery and equipment, livestock, meteorites, airplanes, intangible business assets, etc., (its a long list), Novotny will decline to appraise such objects (since he would lack the necessary knowledge and experience). In such assignments he can help the client find a competent expert or specialist appraiser.
Novotny will imbed value opinions prepared by another appraiser into his report if necessary and appropriate, so that all property that requires appraisal, can be included in one report. As necessary, he will consult with an appropriate expert (when he has only limited knowledge and experience with an object type). This usually will occur when he is faced with an object with value characteristics that he may not sufficiently understand from the market perspective. Such expert assistance helps to inform or confirm his analyses and opinions, and to comply with the COMPETENCY RULE and the SCOPE OF WORK RULE of USPAP.
Novotny lived in Japan for two years in the late 1960's while serving in the United States Army as a paratrooper near Tokyo. During his stay in Japan he studied the history, culture and arts of Japan and visited many museums. He also learned to speak Japanese and to read and write both phonetic Kanas and approximately 600 Kanji. Ten years later he became an antiques dealer. He has continued to pursue both formal and independent study of Japanese and other Asian decorative arts, especially the ceramics, paintings, prints, furniture, metal-work, ivory, folk art and export wares of China and Japan.
Novotny had a solid, well grounded knowledge of common and typical Asian objects, and a good working knowledge in rare, unusual and high quality Far Eastern decorative arts objects. He has bought, sold, studied and appraised Far Eastern Asian objects for over 30 years. He frequently returns to study these objects, their history and how the market responds. He tries to stay current with the rapidly changing and emerging market for rare, unusual and special Far Eastern Asian objects, especially from the modern era of the first half of the 20th century and objects from the 19th century.
Novotny is currently preparing a two or three day class to introduce generalist appraisers to Asian Decorative Arts.
Novotny is not a specialist and recognizes his limits. He will decline to appraise objects for which he lacks sufficient competency. When he and the client agree to proceed, he may elect to rely, as needed, on specialists in Far Eastern decorative arts.
Mistakes are Costly
All experts are subject to error. Asian objects in particular are challenging. Huge valuation mistakes can happen to the best experts. Cowan's is a major national auction gallery and one of the best. On January 8, 2011 two ceramic oriental polychrome male figures, stamped "China" in red on the base, were offered by Cowan's as a lot estimated at $100/$200 for both figures. The pair sold for $36,425.00.
Per USPAP, the scope of work should be determined by the intended use of the appraisal report and on meaningful communication with the client. The client may not want to pay for such diligence. For other similar objects such diligence would be unnecessary and inappropriate. The fact remains that the experts at two auction houses failed to identify the importance of the figure. If not investigated the appraiser should disclose in the appraisal report
The appraiser must avoid significant error and pursue expert advice whenever it is indicated. The appraiser must be diligent and mindful of his or her level of confidence and extent of experience with similar properties. The appraiser must be sensitive to lingering doubt about the credibility of his or her current valuation opinion. The appraiser's scope of work must always be sufficient to develop credible assignment results.
Mahogany Back and Front Bar, 24 feet wide,
Brunswick, Balke and Collender Co.
When an appraiser has some knowledge, and is diligent, research results are frequently sufficient to analyze and value many subject properties.
Expert consultation, when necessary, is pursued
Read about the appraisal process requirements and the competency and scope of work requirements necessary to protect the public for further discussion of these important issues. Beware of appraiser incompetency!
fired metals: gold, sterling silver & plate, bronze, copper, iron, steel, pewter and lead objectsObject types:
fired clays: porcelain, pottery, earthenware, stoneware, yellow-ware, red-ware and general ceramics, American and European art and production pottery of the early 20th century
fired glass: blown or molded glass or crystal, contemporary or historical glass objects and art glass etc.
fine art: paintings, drawings, prints, sculpture, collage, photography etc.
decorative art: antique furniture, wall coverings, floor coverings, lighting, garden objects, accessories
textiles: rugs, carpets, tapestries, quilts, samplers, clothing, couture, linens, lace, etc.
ephemera: books, comics, magazines, photographs, posters, advertising, etc.
cultural objects (for daily or ritual use or tourist objects): Native American, Oceanic, Asian, Far Eastern, European, African, Mexican, South American, European, folk art, carvings, ritual and art objects
military objects: uniforms, helmets, buttons, patches, medals, weapons, firearms, knives, swords, etc.
instruments: navigation, medical, scientific, cameras, clocks, watches, barometers, music boxes, musical players and instruments, pianos, automatons, patent models, scientific discovery, etc.
collectibles: rare records, badges, dolls, toys, salesman samples, games, fishing/hunting items, tools, advertising, sporting, limited editions, figurines/plates/prints, etc.
common and ordinary household contents: furniture, appliances, sewing, tools, sporting goods, electronics, exercise equipment, kitchenware, etc.
Rare Records: Novotny had a rare record business with a quarter million LP's, 45's and 78's as part of his 20,000 and 8,000 square foot antique store for over 15 years.
This short list of the types of objects found in household contents appraisals
is just a sample; in the real world of objects this list is nearly endless.
General knowledge and experience are necessary
Clearly
no person can possess the knowledge and experience to appraise all
objects. All appraisers will lack some knowledge and experience. Yet
there is a need for an appraiser that can embrace an appraisal
assignment in which any of these various types of objects could be
present.
Appraisers are always required by USPAP to do whatever is necessary
to develop credible assignment results for each and every subject object in an assignment.
to develop credible assignment results for each and every subject object in an assignment.
Novotny has bought, sold, collected, studied and appraised the types of objects in the above list for over 30 years.
In any given assignment clients may have certain property types for which Novotny is not competent, such as stamps, gems and jewelry, machinery and equipment, livestock, meteorites, airplanes, intangible business assets, etc., (its a long list), Novotny will decline to appraise such objects (since he would lack the necessary knowledge and experience). In such assignments he can help the client find a competent expert or specialist appraiser.
Novotny will imbed value opinions prepared by another appraiser into his report if necessary and appropriate, so that all property that requires appraisal, can be included in one report. As necessary, he will consult with an appropriate expert (when he has only limited knowledge and experience with an object type). This usually will occur when he is faced with an object with value characteristics that he may not sufficiently understand from the market perspective. Such expert assistance helps to inform or confirm his analyses and opinions, and to comply with the COMPETENCY RULE and the SCOPE OF WORK RULE of USPAP.
Far Eastern Objects (Chinese, Japanese, Korean, Tibetan etc)
Novotny lived in Japan for two years in the late 1960's while serving in the United States Army as a paratrooper near Tokyo. During his stay in Japan he studied the history, culture and arts of Japan and visited many museums. He also learned to speak Japanese and to read and write both phonetic Kanas and approximately 600 Kanji. Ten years later he became an antiques dealer. He has continued to pursue both formal and independent study of Japanese and other Asian decorative arts, especially the ceramics, paintings, prints, furniture, metal-work, ivory, folk art and export wares of China and Japan.
Novotny had a solid, well grounded knowledge of common and typical Asian objects, and a good working knowledge in rare, unusual and high quality Far Eastern decorative arts objects. He has bought, sold, studied and appraised Far Eastern Asian objects for over 30 years. He frequently returns to study these objects, their history and how the market responds. He tries to stay current with the rapidly changing and emerging market for rare, unusual and special Far Eastern Asian objects, especially from the modern era of the first half of the 20th century and objects from the 19th century.
Novotny is currently preparing a two or three day class to introduce generalist appraisers to Asian Decorative Arts.
Novotny is not a specialist and recognizes his limits. He will decline to appraise objects for which he lacks sufficient competency. When he and the client agree to proceed, he may elect to rely, as needed, on specialists in Far Eastern decorative arts.
Mistakes are Costly
All experts are subject to error. Asian objects in particular are challenging. Huge valuation mistakes can happen to the best experts. Cowan's is a major national auction gallery and one of the best. On January 8, 2011 two ceramic oriental polychrome male figures, stamped "China" in red on the base, were offered by Cowan's as a lot estimated at $100/$200 for both figures. The pair sold for $36,425.00.
The Chinese 20" porcelain monk figure, with an impressed seal artist's signature, had been purchased at another auction for $65 (Maine Antique Digest, p12-A, March 2011). This important Chinese porcelain figure turned out to be a 20th century work of an artist with a small, committed international following. The bidding soared unexpectedly.
A general personal property appraiser would be vulnerable to making a significant error on such a piece. Why? Because readily apparent identity supports that the figure was early 20th century based on the red stamped "China" mark and style. Early 20th century Chinese ceramic figures are common. Impressed stylized character marks are common and frequently do not impact value. Based upon apparent evidence, without diligent further investigation of the impressed mark, and consultation with an expert to decipher the mark and identify the maker, the value conclusion of an appraiser could be consistent with the Cowan's estimate because of the abundance of figures with similar characteristics that are common and ordinary and sell for nominal value. Novotny would like to think that he would have recognized the fine quality of design, detail and coloration of this figure.Should the appraiser spend hours in further investigative diligence? Obviously, in this case the answer is yes. Without such diligence an unacceptable and major error would likely occur. For hundreds of other similar figures most appraisers would not investigate further.
Per USPAP, the scope of work should be determined by the intended use of the appraisal report and on meaningful communication with the client. The client may not want to pay for such diligence. For other similar objects such diligence would be unnecessary and inappropriate. The fact remains that the experts at two auction houses failed to identify the importance of the figure. If not investigated the appraiser should disclose in the appraisal report
- that the makers mark was not identified
- that the appraiser assumed that the figure was not of exceptional rarity or value and
- that the present value conclusion, if diligently investigated, would be confirmed.
The appraiser must remain diligent. Competency is essential to credibility.
Some property types are currently experiencing increased demand and appreciation such as Russian and Chinese objects, while other types of objects (eg dark brown antique furniture) have experienced decreased demand and falling prices unless they are an exceptional example. Appraisers must be aware of relevant economic conditions so that their analyses and opinions are credible.
The appraiser must avoid significant error and pursue expert advice whenever it is indicated. The appraiser must be diligent and mindful of his or her level of confidence and extent of experience with similar properties. The appraiser must be sensitive to lingering doubt about the credibility of his or her current valuation opinion. The appraiser's scope of work must always be sufficient to develop credible assignment results.
Mahogany Back and Front Bar, 24 feet wide,
Brunswick, Balke and Collender Co.When an appraiser has some knowledge, and is diligent, research results are frequently sufficient to analyze and value many subject properties.
Expert consultation, when necessary, is pursued
Novotny will frequently consult with a specialist to
confirm a value opinion,
confirm the identification of the item, or
inquire whether there are relevant value characteristics not considered, and to
confirm the likely response of market participants to the identified object characteristics in the market.Not all subject objects are confirmed or submitted for expert consultation. The appraiser must constantly make a scope of work decision as to whether or not a value opinion, as developed, is sufficiently credible relevant to intended use.
Read about the appraisal process requirements and the competency and scope of work requirements necessary to protect the public for further discussion of these important issues. Beware of appraiser incompetency!
Uniform Standards of Professional Appraisal Practice (USPAP)
The standards for ethical and competent appraiser performance are published in USPAP. Novotny has been an AQB Certified USPAP Instructor since 2003. He was the first personal property appraiser to be certified by the Appraisal Foundation.
Novotny has significant expertise in the appraisal process and how USPAP standards apply. Compliance with USPAP is the best support that a valuation is worthy of belief.
Find out more about Novotny's personal property and antiques appraisal background, knowledge and experience. Review his CV on this website to see how he acquired the knowledge and experience necessary to appraise these many different personal property object types.
Copyright 2011 - all rights reserved - William M. Novotny