Firearms Appraisal Services
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- Published: Wednesday, 24 April 2013 13:36
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The mission of our appraisal service is to assist owners of collectible firearms in identifying, cataloging, and determining the value of their firearms.
Appraisal Services
We offer several types of appraisal services. The following may help you determine which service is right for you. Services range from free of charge, to fixed per item fees, or hourly consulting fees.
Email Ray to discuss your appraisal needs: This email address is being protected from spambots. You need JavaScript enabled to view it.
Preliminary Assessment
Before deciding to invest in a formal appraisal our clients often want to determine if a firearm, or collection, is valuable enough to merit the investment. We can often provide this service at no charge. This may be done in person or by reviewing descriptions or photos provided by the client. We can then give the client a general idea if the value is likely in the hundreds, thousands, tens of thousands, or more. Guidance will also be given on what if any appraisal services would be appropriate, along with a quote for those services.
Appraisals
Any type of appraisal requires close inspection of the item being appraised. In most cases this means a hands-on inspection. On occasion a limited appraisal can be performed based on very high quality photographs.
Verbal Appraisal
When a client would like to know the value of a firearms or collection, but does not require any written documentation, a verbal appraisal is the fastest and most cost effective option. The appraiser will identify each item and provide an estimate of the current retail market value.
Written Appraisal
When a client desires written documentation either for their own records, or for legal/insurance purposes a written appraisal will most often meet this need. The appraiser will closely inspect and photograph each item. The final report will contain make, model, serial number, caliber, description, special notes, and replacement value. In addition to this basic information our service is unique in offering ratings on Condition, Rarity, and Historical Significance using our proprietary rating system. This helps owner understand the key factors contributing to the value of the item.
Custom Research and Documentation
On occasion a client has a special need not covered by our normal services. For these clients our appraisers can develop a custom research and documentation proposal.
How values are determine.
Our goal is to determine the fair value at which comparable firearms are selling at the time of the appraisal. The primary sources of this information are recent auction results, and sales at collector shows. It is important to distinguish between advertised prices, asking prices, “book” prices, and actual sale prices. Often firearms are seen offered at several times their actual value, but rarely are they sold at these prices. At the same time books may list a value that is far below (or above) the values being realized in actual sales. It is very important that values be based on actual sales to give the owner a fair idea of what a firearm might be sold for, or the cost to replace a firearm. Our experienced appraisers are also dedicated collectors or industry professionals that regularly seek out the latest information on firearms values.
As with many collectibles very similar firearms can have very different values. Key factors are the condition (or originality), rarity, and historical significance. Small variations in condition can have large impacts on value. It is not unusual for a firearm with 95% original finish to be worth three times (or more) the value of the same firearm with 85% of the original finish. You will often hear collectors say “condition is everything” or “it’s hard to pay too much for firearms in mint condition” and these are generally true statements. Rarity is also important and this could mean rarity of a particular variation or sub-variation. Markings smaller than a grain of rice can make the difference between a common variation and a rare variation, in otherwise identical firearms. Historical significance can often influence interest in a certain type of firearm, or an individual firearm. For example a Military pistol from World War II may have more interest than the same pistol made for commercial use, even though the military version maybe more common. Likewise a specific firearm documented to have been used in a certain battle, or owned by an historical figure, will have more interest than the same type of firearm without a documented history. An experienced appraiser can help assess these factors to identify a firearm and determine its value.
The owner should also consider that prices can change rapidly, historically firearms have increased in value over time, but they may also go down in value. The appraisal is not an offer to buy the firearms, or any guarantee that it can be sold for a certain value.
Type of Appraisal Values
Our clients seek appraisals for many reasons. In general they either want to know what it would cost to replace the items (Replacement Value), or how much they can expect to realize when selling the items (Liquidation Value). The Replacement Value is established based on the fair market value. As discussed in the section “What to expect when selling collectible firearms”, the net proceeds one can expect when selling firearms varies depending on how they are sold. We generally use the auction as the best estimate of Liquidation Value. Auction terms can vary greatly, but we have found that 8% sales tax & fees, 10% buyer premium, $10 transfer fee, and 20% commission are fairly common. These are the values we use to estimate the proceeds a seller will realize.
What to expect when selling collectible firearms.
An owner has several options for selling collectible firearms including setting up at collector shows, selling at auction, selling to a private collector, and selling to a dealer. Each has its advantages and detractions, which I will discuss below. The amount a buyer is willing to pay will likely be influenced by how hard the firearms are to buy elsewhere and how hard they would be to sell. The appraiser maybe able to help the owner understand how these factors could influence how much they can get when selling a collection.
Selling at a collector show- Selling at a show will often realize the highest prices for collectible firearms. However, it is also the most difficult. The seller will need to incur the costs of traveling to and setting up at the shows, and it will likely take several shows to sell even a moderate size collection. The most desirable firearms will likely sell quickly, leaving the owner with the hard job of selling the remaining arms. Another concern can be the legal liabilities of privately selling firearms. These vary by locality and seeking legal counsel is advisable. (Often 75% to 100% of full value)
Selling to a private collector- A private collector may offer the owner more than they can realize at an auction. However this will likely be less than could be had at a collector show. A collector may not want to buy everything unless the owner can find a collector that has an interest in all or most of the collection. Private collectors are often either looking for a bargain, or for an item that is hard to find. If you can find the right collector they can be the easiest way to sell a collection, even if they may not offer the top dollar value one might get at a show. You may want to ask if the collector has a Collector of Curio & Relics Federal Firearms License (a.k.a. C&R FFL). This allows the collector to purchase firearms across state lines and may offer the seller some protection from legal liabilities, but it does not make the collector a firearms dealer. (Often 50% to 80% of full value)
Selling at auction- A good quality auction can realize fair prices for collectible arms. However, auction fees, buyer premiums, and taxes will limit the amount that goes to the owner. Typical fees are 15% to 20%, with a 10% buyer premium, Sales Tax, and a $10 to $20 transfer fee. For example: If a firearm is worth $500, a buyer might bid $400, after taxes and buyer fees they pay about $480, the owner gets 80% of the $400, or $320. This is still a fairly good amount to realize, however the owner will risk getting significantly less if there aren’t at least two bidders willing to pay a fair price at the auction. An owner may place a reserve price on the firearm to protect from selling it too low, but then they face the possibility of paying auction fees without actually selling the item. (Often 40% to 65% of full value) (See Liquidation Value)
Selling to firearms dealer- A large firearms dealer may offer the owner the fastest way to sell a large collection. They are more likely to be willing to buy an entire collection, and in most cases (firearms newer than 1898) they will need to be federally licensed. A firearms dealer makes their living buying and selling firearms. The difference between what they pay and what they can sell it for is what pays the rent, pays the employees, and feeds their family. They will likely offer a lower dollar amount for a collection than might be attained through other methods. This doesn't mean they are trying to “rip-off” the seller; they simply need to cover considerable expenses while still earning a return for their efforts. (Often 25% to 50% of full value)
