| The customer is always valued, but not always right. I recently had a case with a client who prompted this article. |
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| A couple of weeks ago, I inspected a piece of artwork in an upscale community for insurance coverage. I inspected the artwork, documented the necessary information for my research and appraisal, then I was on my way. |
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| Upon completion, I contacted the client to inform him that his report was ready and to discuss the results. He said that he was not satisfied with the value of his piece and he said that he would not pay for my services unless the artwork realized a "certain value" for his insurance. |
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| This was quite a shock to me to be presented with such a proposition. I found it not only disappointing, but I also found it very insulting that he thought I might consider it with the leverage of his nonpayment, of course. |
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| Later when I discussed this with my associates, I found that it is an all-too-common situation. |
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| Many appraisers are pressured by their clients to provide a value that caters to their needs. Unfortunately, appraisals are not custom order. The improper valuation of an item not only puts the client at risk for being over or under insured, it questions the credibility of the appraiser. |
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| Ultimately it can lead to insurance fraud. But most of all it is unethical and both parties are on the losing end. |
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| Insurance coverage is vital especially for artwork, fine items and jewelry. |
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| Appraisals for these types of items are based on several factors, including but not limited to: the artist/maker, quality, condition, age, etc. The results come from fact-based market research. Having the proper valuation for insurance coverage is one of the preventative measures to keep insurance premiums from soaring. |
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| My best advice is to avoid an appraiser who is a "hired gun" and is willing to satisfy their client to the point of playing with the numbers. |
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| As previously promised, I will continue with the topic of Oriental rugs in my forthcoming article. |
