Appraisals by a Auctioneer licensed in the State of Texas with experience in the research, valuation and appraisal of Fine Art, Rugs, Tapestries, 19th Century English glass chandeliers and other personal property.    

 Market Approach

  This approach involves the collection of market data pertaining to the subject assets being appraised.  This approach is also known as the “Comparison Sales Approach”.  The primary intent of the market approach is to determine the desirability of the assets and recent sales offerings of similar assets currently on the market in order to arrive at an indication of the  most probable selling price for the assets being appraised.  If the comparable sales are not exactly similar to the asset being appraised, adjustments must be made to bring them as  closely in line as possible with the subject property.

 Cost Approach

  This approach is based on the proposition that the informed purchaser would pay no more for a property than the cost of producing a substitute property with the same utility as the subject property.  It considers that the maximum value of a property to a knowledgeable buyer would be the amount currently required to construct or purchase a new asset of equal utility.  When the subject asset is not new, the current cost must be adjusted for all forms of depreciation as of the effective date of the appraisal.

 Income Approach

  This approach considers value in relation to the present worth of future benefits derived from ownership and is usually measured through capitalization of a specific level of income.  This approach is the least common approach used in the valuation of fine art objects, since it is difficult to isolate income attributable to such assets.

 Definition of Terms

  Depreciation: Defined as the actual loss in value or worth of a property from all causes including those resulting from Physical deterioration, functional obsolescence or economic obsolescence.

  Physical Deterioration: A form of depreciation where the loss in value or usefulness of an asset is attributable solely to physical causes such as wear and tear and exposure to the elements.

  Functional Obsolescence: A form of depreciation where the loss in value is due to factors inherent in the property itself and due to changes in design or process resulting in inadequacy, overcapacity, excess construction, lack of functional utility or excess operation costs.

  Economic Obsolescence: A form of depreciation or loss in value by unfavorable external conditions.  These can include such things as the economics of the industry, availability of financing, loss of material and labor sources, passage of new legislation, and changes in ordinances.