Valuing a collection

Coin Appraisal vs Dealer Offer: Which One Does Your Inherited Collection Need?

Families settling an estate often hear "get it appraised" and "get some offers" as if they mean the same thing. They don't. An appraisal is an opinion of value for a specific purpose, prepared by someone who ideally has no stake in buying. An offer is what one buyer will pay you today. Both are useful, at different moments, and mixing them up is where a lot of families get hurt.

They answer different questions

An appraisal answers "what is this collection worth, by a defined standard, for this purpose?" The purpose matters. An appraisal for estate records, one for insurance replacement, and one for an equitable division among heirs may use different value standards and can produce different numbers for the same coins. A proper appraisal states its purpose, the standard of value used, the date of valuation, and what was examined.

An offer answers "what will this particular buyer pay me, today?" Dealers have to cover overhead, time, risk and profit when they resell, so a fair wholesale offer is normally below what the same coins would sell for at retail. That's not a scam; it's how the business works. The problem arises when an offer is presented as if it were a neutral valuation.

When you probably need an appraisal

• The estate requires documentation of value. Your estate attorney or tax professional can tell you whether a formal appraisal is needed, what standard of value applies, and what date the value should be measured as of. Don't guess at this; the requirements depend on the estate and jurisdiction.
• Heirs are dividing coins rather than selling them. A neutral valuation helps make a split fair and reduces disputes.
• You are keeping the collection and want to insure it. Insurers often want documentation for valuable collections.
• The collection appears significant and you want an independent baseline before talking to buyers.

For a modest collection of common circulated coins, a formal appraisal may cost more than it's worth. Your own inventory and sold-listing research, plus a couple of written offers, may be enough. Again, check with the people handling the estate.

When you probably need offers instead

If the family has decided to sell, and the estate doesn't require a formal appraisal, multiple written offers are the practical tool. Competition is what protects you. Two or three independent offers on the same, clearly inventoried group of coins will tell you more about the realistic selling range than any single opinion.

Before asking for offers, do enough research to recognize a reasonable range. Searching sold listings for representative coins, for example sold Walking Liberty half dollars or sold U.S. proof sets in original packaging, won't give you an exact number, but it will tell you whether an offer is in the right neighborhood.

A caution about "free appraisals"

You'll see advertisements for free coin appraisals at hotels, pop-up events, and through mailers or phone calls after a death notice. Some are run by legitimate businesses; the word "free" is the tell that the real goal is buying. That's not inherently wrong, but treat a free appraisal as what it is: a purchase offer from someone who wants your coins.

If someone values your coins and then offers to buy them, you can still consider it. Just get at least one other written offer, ideally from someone who didn't set the first number.

How to find an independent appraiser

Coin appraisal isn't licensed the same way everywhere, so you'll need to ask questions. Good places to start are numismatic professional organizations such as the American Numismatic Association and the Professional Numismatists Guild, which have member directories and codes of ethics, and personal property appraisal societies, some of whose members specialize in coins. Your estate attorney may also have people they've worked with.

Questions to ask before hiring

1. Do you buy coins? If yes, will you agree not to make an offer on items you appraise, or disclose that interest clearly in writing?
2. How do you charge? Flat fee, hourly, or per item are common. Be wary of fees based on a percentage of the appraised value, which create an incentive to inflate it.
3. What will the written report include? Look for item descriptions, the purpose and standard of value, the valuation date, method, and the appraiser's qualifications.
4. Is the report suitable for estate purposes? Confirm with your attorney or tax professional what they need, and share that with the appraiser.
5. What experience do you have with this kind of material? U.S. coins, world coins, ancient coins, and paper money are different specialties.
6. Will the coins stay in my presence? If not, get a detailed, signed receipt listing every item.

How to prepare for either one

The better your inventory, the faster, cheaper and more accurate both appraisals and offers become.

• Inventory by unit: each slab, set, album, roll, bag and loose coin group listed separately
• Certification numbers recorded for every slab (look them up on the grading service's site)
• Photos of the collection as found, plus close-ups of standouts
• Original receipts, invoices and the owner's notes gathered together
• Nothing cleaned, re-housed, or removed from original packaging
• A copy of your inventory kept by you, not only by the appraiser or dealer

Archival supplies help keep things organized without causing harm. If you need storage for loose coins while you prepare, look for PVC-free coin flips and 2x2 holders rather than old soft vinyl, which can damage coins over time.

Understanding the "three values"

Whatever route you choose, keep three numbers distinct in your head: what similar coins retail for from dealers, what they've recently sold for at auction or online, and what you'd net after fees and costs. Price guides tend to reflect retail. Dealer offers reflect wholesale. Auction and online results fall in between, minus seller fees. Seeing sold certified coin results helps you understand the middle number, and an appraisal or offers fill in the rest. None of them is "the" value; each answers its own question.