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I often run into people who say they want to start buying antiques or other collectibles, but they don’t know where to start.
My advice? Start by learning the terminology that collectors use. And one of the first things you should know is what collectors and buyers mean when they say something has value.
Value is defined as something important, useful or highly desired. Items are considered valuable if they’re significant to someone.
First, understand that nearly every person develops their own sense of what has value, and value can be divided into three main categories: intrinsic value, aesthetic value, and functional value.
1. Intrinsic Value – With intrinsic value, an object's value is based on what it is or what it stands for or what it means to someone. For example, a painting may have value because the artist is famous. An old perfume bottle may not be useful, but because it belonged to your grandmother, it's important to you and keeping it makes you happy. Therefore, the perfume bottle has intrinsic value.
2. Aesthetic Value – This means something has value because of it's beauty. Is the painting pretty? Do others think that it’s appealing, too? Does that piece of furniture beautify or enhance a home or some other space?
3. Functional Value: Is it useful? Does it give you or others a better quality of life? Does the item fill a need or serve a purpose?
Now, let’s talk about money. Valuation is the process of assessing the monetary worth of an object like an antique mirror, an 80-year-old doll or a classic automobile. There are four major ways to determine valuation or how much money something is worth:
1. Fair Market Value – This is the price at which the buyer and the seller are willing to exchange merchandise without distress. It’s when buyer and seller are both knowledgeable of and agreeable to the same price. It’s the agreed upon price of something.
2. Liquidation Value – When a seller is under duress and is willing to sell below the assessed fair market value, they’re selling the items at liquidation value. This term often comes up when individuals are relocating, divorcing, filing for bankruptcy or liquidating the estate of a deceased loved one.
3. Replacement Value – Replacement value is what it will cost today to replace an item that was purchased in the past. So if someone bought a ring 75 years ago for $500, the ring’s replacement value might by three times that price today.
4. Appraised Value – The price assigned to an object by a professional appraiser based on factors such as the age of an item, craftmanship, rarity, and supply and demand.
As you take steps to collect vintage objects, knowing the different types of value will help you to determine what’s worth buying and what’s not.
LaCheryl
Here are some related posts you might like!
My advice? Start by learning the terminology that collectors use. And one of the first things you should know is what collectors and buyers mean when they say something has value.
Value is defined as something important, useful or highly desired. Items are considered valuable if they’re significant to someone.
First, understand that nearly every person develops their own sense of what has value, and value can be divided into three main categories: intrinsic value, aesthetic value, and functional value.
1. Intrinsic Value – With intrinsic value, an object's value is based on what it is or what it stands for or what it means to someone. For example, a painting may have value because the artist is famous. An old perfume bottle may not be useful, but because it belonged to your grandmother, it's important to you and keeping it makes you happy. Therefore, the perfume bottle has intrinsic value.
2. Aesthetic Value – This means something has value because of it's beauty. Is the painting pretty? Do others think that it’s appealing, too? Does that piece of furniture beautify or enhance a home or some other space?
3. Functional Value: Is it useful? Does it give you or others a better quality of life? Does the item fill a need or serve a purpose?
Now, let’s talk about money. Valuation is the process of assessing the monetary worth of an object like an antique mirror, an 80-year-old doll or a classic automobile. There are four major ways to determine valuation or how much money something is worth:
1. Fair Market Value – This is the price at which the buyer and the seller are willing to exchange merchandise without distress. It’s when buyer and seller are both knowledgeable of and agreeable to the same price. It’s the agreed upon price of something.
2. Liquidation Value – When a seller is under duress and is willing to sell below the assessed fair market value, they’re selling the items at liquidation value. This term often comes up when individuals are relocating, divorcing, filing for bankruptcy or liquidating the estate of a deceased loved one.
3. Replacement Value – Replacement value is what it will cost today to replace an item that was purchased in the past. So if someone bought a ring 75 years ago for $500, the ring’s replacement value might by three times that price today.
4. Appraised Value – The price assigned to an object by a professional appraiser based on factors such as the age of an item, craftmanship, rarity, and supply and demand.
As you take steps to collect vintage objects, knowing the different types of value will help you to determine what’s worth buying and what’s not.
LaCheryl
Here are some related posts you might like!
Seven Steps to Securing and Protecting Antiques
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Why You Should Think About Pawn Shops
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Three Questions to Ask When Buying Antiques and Collectibles
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