Affluent South Florida owners often face a dilemma when listing their home or condominium for sale: What should they do with their fine art, period furniture, woven tapestries, or other expensive personal assets One option is to carefully pack everything and transport it to a new residence. However, this entails an additional moving expense and the risk of damage. More importantly, the new home may not have the right square footage, floor plan or interior design to accommodate the current artwork, furnishings or antiques especially when the owner is moving to a smaller residence. In other cases, the owner may decide to include some or all of these assets in the purchase price of the house. That can be a win-win situation for both buyer and seller, when both parties have similar tastes. Artwork, furnishings or antiques can also be used as a sweetener when making an offer or counter-offer during negotiations.
Another option is selling the assets, in whole or in part, to a third-party prior to closing the sale of the home. Our team at Kravit Estate Appraisals LLC has advised many owners with collections that appeal to affluent individuals. For example, a group of paintings by a noteworthy artist or several pieces of fine jewelry could be sold at auction to the highest bidder. For other owners, the best choice might be to donating their personal assets to a charity and gain a significant tax deduction.
This choice can be very beneficial for entrepreneurs, executives and professionals who are still earning a six- or seven-figure income. Donations can also be incorporated into an estate plan. But before the owners sell or donate their expensive personal assets, it's important to obtain an up-to-date appraisal of their values.
That's because each necklace, painting, sculpture, wall hanging or antique is unique, unlike stocks or bonds with easily determined market values. Documentation of purchase prices, conditions, appraised values and market demand is essential whether the owner plans to sell these belongings, donate them to a charity or use them as a bargaining chip in negotiating the sale price of the home. Our team works closely with South Florida real estate professionals serving the luxury residential market.
In many cases, we can make a preliminary evaluation of the personal assets and discuss the owner?s options prior to listing the home for sale. This is particularly important if the owner wants to include the artwork or furnishings in the sale. Kravit Estate Appraisals LLC can also assist with selling or donating the personal assets before (or after) the closing. By helping owners maximize the value of their possessions, we can improve their financial situation, giving them additional resources as they begin the next stage of their lives.