I just received an email on the ValueMyStuff, which states "The report is an expert’s guide to the complex and fragmented art and collectibles market, looking at both important valuation factors, risks, changes in taste and the impact on value on a broad section of art and collectibles. The report covers 49 collecting categories from Memorabilia and Scientific Instruments to Fine Art." To download the report, click HERE.
The group of experts who have contributed opinions and commentary to the report are just short market related capsules that are not at all related to the data and ValueMyStuff conclusions. In short they are discussing general markets and standards of art lending, insurance standards etc, but not using any of the ValueMyStuff data conclusions in their commentary.
I am still collecting comments on the ValueMyStuff report, but the more I delve into the report, the more concerns I have. Most comments, so far, have not been positive, with many appraisers concerned about multiple report factors, including the exclusive use of ValueMyStuff data, no definition of "fair market value" (keep in mind it is a UK platforms FMV could be different than what we use in the states. Additionally, the sample report on the website uses Insurance Value and Auction Value (yet in the notes it is called an auction estimate) and not fair market value.
Typically online valuations are used with restricted reports, where an owner might wish a quick valuation and identification before paying for a qualified appraisal by a qualified appraiser. ValueMyStuff states it can be used for insurance, so here we have third parties using the report and making financial decisions based upon the content and value conclusions through images.
Additionally, in each item category the report has condition as being highly important value characteristic, and rightfully so, but how is that justified against appraising from images without performing an inspection or getting an unbiased condition report.
Perhaps most concerning to me is the unusually low value of the data points used for compiling and analyzing market trends within the report. The report narrative notes the average FMV across all valuations is $4,398. And, nearly 84% of all FMVs were below $1,000. So in effect, we are looking at a report giving market trends and quantitative data on decorative accessories and household content. Not to say the report is not useful, but it many cases it may only apply to the lower market levels of the various listed categories.
Many professional appraisers are skeptical about online appraisers and how they can be credibility performed with property due diligence, authentication and accurate valuations for $20 per item. An appraisal is not an auction estimate, it is a researched and developed valuation based upon scope of work and the intended use.
Given ValueMyStuff is chagrining $20 per item, how does the appraiser make any income and perhaps more importantly, produce a credible appraisal report and value conclusion. The website sates, "Expert Appraisals in 48 Hours, from $10". Another comment pointed out by a comment, what about liability if this is being used by third parties such as an insurance company.
Please keep the comments coming, it is interesting to see what appraisers think of this platform and report.
ValueMyStuff states in the report
Data Source & Limitations (bold emphasis added)
The valuation information used for this report is exclusively based on data provided by ValueMyStuff. The findings provide valuable insights into the market for valuations of art and collectibles but are not neccesarily indicative of the overall market trends.
The Average Fair Market Value across all valuations made by ValueMyStuff between 2012-2017 came in at $4,398. At the top end of the 10 sectors covered in this report we find the Fine Art sector (see graph below), which also accounts for 61.7% of all valuations with a Fair Market Value above $100,000. However, 83.9% of valuations in the period did have a Fair Market Value below $1,000.
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