When Do You Need an Oriental Rug Appraisal?

      By Penny Krieger

I recently asked my restorations and appraisal expert, Pamela Hiller, for a bullet-point list of the applicable rules and standards for the professional valuation of Oriental rugs.

Pamela and I have worked together for a number of years in the rug business and she is an accredited appraiser of Oriental rugs with over two decades of experience.

Some of the below information, may be of value, particularly if you are a mature person with a large collection or are planning to make a donation to a non-profit and would like to play by the rules, which is always recommended.

When purchasing new rugs, always keep your receipt filed safely along with a clear, detailed photograph of the rug.

IRS Requirements:
The IRS requires any charitable contribution over $5000.00 to have a written appraisal performed by a qualified appraiser.  This appraiser must be accredited by a recognized appraisal organization such as the International Society of Appraisers.

Estates:
For equitable distribution of property, a written appraisal with the current fair market value of the rugs in question is often required.

Divorce:
Where antique rugs are involved or even pieces that have been owned for a number of years, an appraisal is seriously recommended.  The fair market value of these rugs can change dramatically with the availability or popularity of certain types and auction houses are always setting new records for scare or museum quality antique rugs.

Insurance:
Insurance companies require a current appraisal (less than two years old) to provide accurate insurance coverage for a valuable carpet. [In the case of damage to a rug, a damage assessment appraisal is often handled by the insurance company]

What is involved in creating an appraisal?

1. Discovering any known history of the rug or carpet, interviewing family members or tracing the provenance of the piece.
2. Detailed inspection assessing condition, characteristics and materials used in the construction of the rug.
3. Photographing the rug correctly and clearly.
4. Market research investigating market trends for the type of rugs involved and current sales prices of similar rugs.
5. Documentation. The final document, being a written appraisal report that conveys all the above information.
   

There you are.  I hope this information is of some use.

Penny Krieger
To visit my home page, click here

To contact Pamela, go to:
Pamela Hiller Oriental Rug Restorations and Appraisals