Autograph Values - Identifying the Value of an Autograph - So, What's It Worth?

By: Brian Kathenes, ISA-CAPP 

Perhaps the most commonly asked question I hear is; "So, what's it worth?" The question may pertain to a Ships’ Paper signed by James Madison and James Monroe, a signed photograph of movie star and sex symbol Marilyn Monroe, or a hand-written letter by Jackie Robinson.  Frequently it is an innocent request for a "ball park figure" on a specific item (no pun intended). As a professional appraiser, it is difficult to formulate a simple one-word answer.

Every item on the planet has many different values.  The Madison / Monroe document, for example, will be shown to have at least four different values -- and each one will be correct. How can that be?  It depends upon the market.

You are probably familiar with the term "market." A market is any place or system for exchanging property between buyers and sellers. A market can be a retail gallery or a weekend flea market. It can be a bankruptcy liquidation sale or a mail order catalog. The internet and other on-line auction services are markets for the buying and selling merchandise.  The "price" at which the item is sold may be different in each market. The term "Fair Market Value" is a legal definition used in a variety of instances. Charitable contribution, dissolution of marriage, or estate tax liability, may be circumstances when fair market value is required. 

"Fair Market" does not mean "reasonable." The term "fair" comes from old English law, meaning open and free market, as in a "market" or "fair" where goods are bought and sold.  This value may be very different than the retail price. In situations when someone is interested in insuring an item, a retail replacement cost may be most appropriate. 

It all seems quite confusing, but once you identify the reason you want to know "what it’s worth," then a value can be provided.  The "reason one needs to know" is referred to in the appraisal profession as the "intended use” of the appraisal.  It is also referred to as the "assigned use.”  Once the "use" is identified, the appropriate market can be researched.

Markets range from high-end, high-quality, retail autograph galleries to flea markets and garage sales. Various quality and all types of material can be found within any market.  One example is the multi-million dollar “Dunlap” copy of the Declaration of Independence reported to have been found behind and old picture at a garage sale.

Here are some examples of situations where the value is dependent upon the "use" or "need." 

If the appraisal report's intended use is to obtain insurance coverage, the appraiser will identify the estimated replacement cost. The market research is conducted at the gallery where the item was purchased.

If the report's function is to liquidate a bankrupt business, the appraisal will identify the liquidation value. The market is the “courthouse steps,” or possibly a forced sale or quick auction sale.

If the report's intended use for a potential tax deduction for a charitable contribution, the appraisal will identify the Fair Market Value. The market is most likely a well advertised, professionally operated auction.

As an example, we'll use Madison / Monroe Ship's Paper. If an owner and the insurance company need to know what it will cost to replace the item with a similar piece, an appraiser might research its original source; the gallery where it was purchased. The estimated replacement cost will be the price at which a buyer could purchase a similar item in this or a similar gallery.

If that same owner filed for bankruptcy and the U.S. Bankruptcy Court Judge ordered the sale of the item, the appraisal will most likely report a value far less than the retail price.

If the owner decided to donate it to the National Archives, the appraisal report will report Fair Market Value, which is usually somewhere between the retail price and the liquidation value.

Finally, if the gallery owner was robbed, his insurance company might compensate him or her at the original purchase price.

As you can see, the same item has many different values. Each value is accurate and appropriate for the "intended use" and "purpose" of the valuation. There is far more to determining value than simply picking a price.  Anyone providing values must understand the autograph, manuscript, and historical document market as well as the reason for asking the question; "So, what's it worth?"

Obviously, the same methodology is used by professional appraisers for all types of antiques, collectibles, artifacts, and tangible personal property.


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Brian Kathenes is the host of Value This With Brian and Leon, a nationally syndicated public radio show, and a TV personality. 

He is a published author and the Managing Partner of National Appraisal Consultants, a full service personal property valuation firm.

He is past Chairman of the New York Winter Antique Show Vetting Committee on Autographs, Manuscripts & Rare Books, and works with Leigh and Leslie Keno, and Cash in the Attic 's Tim Luke.

He offers a special antiques and collectibles free report : "How To be Your Own Appraiser," which can be found at: http://www.BestAntiqueTips.com