Is it bad form to ask 2 coin dealers for an appraisal?
Tomthemailcarrier
Posts: 757 ✭✭✭✭✭
I recently had an unexpected reaction from a local coin dealer that I respect. My brother in law is dealing with his mom’s estate which has a large number of coins. They’re mostly silver and some gold modern coins that appealed to her. A number of Australian kookaburras, Canadian Maple leafs, Gold 50th anniversary Kennedy commemorative and the like.
I gave one local dealer the list which consisted of 110 line items. I agreed to pay him for the appraisal and he completed it in 3 days. The second dealer works on appointment only and I left a voicemail for him. Received a call back the next day and stated that I needed an appraisal since the coins were either to be sold or divided up 4 ways. I offered to pay him for his work. I neglected to mention another dealer was doing one too.
After exchanging a few emails he said the appraisal was done and to call him. During our conversation I mentioned that I’d gotten a second appraisal since the executor had requested it. Then the conversation ended. He never sent it to me. He doesn’t respond to my emails. I called today and left a very gracious and conciliatory message with no response.
Did I commit a faux pas? I didn’t intend to hide the fact that I’d approached another dealer but I understand that dealer #2 may have felt blindsided. Not sure how to fix this as I’ve valued both coin shops.
Comments
No, he chose to end the engagement, and sounds extremely unprofessional. I would be quite suspicious of a dealer who acted in this manner when you were offering to pay for his effort. Sounds to me like he was going to try and lowball you. I would discourage anyone from using him if asked.
It sounds like more of a problem so id go elsewhere as stated. Its to bad they gotta act like that
From what you have written you did nothing wrong and also nothing that most experienced dealers would not have anticipated.
In honor of the memory of Cpl. Michael E. Thompson
Nothing to fix, because you did nothing wrong. You paid for the appraisal, or was willing to. That did not create an entitlement or an expectation for the dealer of anything beyond that.
In hindsight, there was no reason to tell him about the other appraisal. But, by his reaction, it is more likely than not he was going to low ball the number in the hope of buying at that price, and didn't want to deal with competition from another dealer.
Extremely unprofessional of the dealer. Take it as a sign not to value this shop, and go get another appraisal, since multiple appraisals are exactly was is called for under these circumstances.
On one hand I get that performing an appraisal is work (that you were willing to compensate for) and a dealer is thus hoping his investment of time will pay off. However, I think any reasonable dealer knows that he has to compete and that a seller would be almost foolish to not get a second opinion (hence the executor's request). And also a dealer knows that he doesn't get every deal he's presented with and further, he can ensure his effort pays off by offering as much as he can.
I think you dodged a lowball.
Tom
Based on your description of the accumulation, I think you are qualified to do the appraisal.
P.S. My favorite childhood book was "The Seven Little Postmen."
I agree with others you did nothing wrong yet do also believe there may be more going on with the second dealer than the OP or us are aware of.
If it was simply because he lowballed the appraisal with the hopes of having the coins sold to him, he could have upon learning there was a second professional appraisal involved inflated his own numbers say, 20% (or whatever). It would have involved little to no extra work to do so and he would have collected his fee.
The fact he did not is telling and a bit of a curiosity.
Sometimes ego gets in the way. Nothing wrong with a second opinion. #2 dealers loss for this situation and possible future business loss with you.
His reaction speaks for itself. You were wise to seek multiple appraisals.
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Email the dealer back and ask What Part OF
The executor had requested it.
Did he not understand?
You were willing to pay for the appraisal and a division of an estate should always consider having a 2nd appraisal.
The second dealer was going to low-ball you and was embarrassed that he was going to be discovered when he found out that you were getting another appraisal. Some dealers don't want coins that they have to pay a fair price for.
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Sounds like it. Its more common than one would think
I see nothing wrong here, other than the second dealer dropped you like a hot potato, which could be an indicator of a lowball offer. You were asking for their offer and you received it...sort of. Actions speak louder than words and the second dealers message seems to be pretty clear.
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There are good reasons to get second appraisals or even more than that. The bigger the company the more likely they expect they are the only one doing the pricing. There are two major local shops locally; one told me that one customer went to the other and got a $225K or so appraisal, and they offered $290K, it would be hard to know if this is accurate unless they posted both appraisals for review. In my experience neither are top dollar but play games, running down coins that are not PCGS and or cac. So if a customer really wants to get top dollar they have to keep researching.
The tip-off is the fact that the second dealer did not quote a price for a true appraisal. True appraisers do not buy what they appraise. The second dealer probably wanted to buy the coins, not appraise them. Was his offer to be high, low or right on? You will probably never know.
I would never pay a dealer to do what I could do myself.
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My Full Walker Registry Set (1916-1947):
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The second dealer may have been concerned that the customer could post both appraisals online and could have embarrassed them. Prices can vary greatly as customers fish around for more and more offers.
A couple years ago before silver's big rise, a local man contacted me to go over his collection of silver coins and I offered as much as I could with a top in state travelling precious metals buyer giving me his numbers. I'm sure our offer was more than some local shops, but still it wasn't enough for the customer, whose aunt who was a banker who'd gotten the coins in her job had left them for the family.
You have no choice in an estate. If you are a party to the estate, even if your name is John Albanese, you have to get an INDEPENDENT appraisal.
Even if the other parties in the estate were okay with my doing it, I would insist on a 3rd party. I don't want to sour any relationships. I've seen it happen.
All comments reflect the opinion of the author, even when irrefutably accurate.
This was absolutely my thought. 2nd dealer assumed he'd sweep in and get to buy at the 'values' they established. When they realized they'd have to provide respectable market values, the 2nd dealer walked. That says a lot, when you were offering to pay for their valuations!
This just happened to me yesterday. Went to the guys house and after an hour or so, he says…. “ I have two more dealers coming”. So, I said , okay, but don’t show them this “1889-CC Morgan dollar”. He asked why , and I said, because I want to rip you off.”
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Second opinions are a Fact of life.
When I initially posted; I wondered about that...Yes, it makes sense.
Sometimes, it’s better to be LUCKY than good. 🍀 🍺👍
My Full Walker Registry Set (1916-1947):
https://www.ngccoin.com/registry/competitive-sets/16292/
If spending a lot of your professional expertise and time on evaluating a collection, always charge a fee, possibly refundable if you buy it.
To answer the question in the OP: no, it isn't "bad form", and I would expect any dealer to be prepared to sometimes be part of a "shopping around" process, either for multiple formal opinions in the case of estate or insurance valuations, or for offers to sell. Certainly any dealer that had ever been involved with a coin show would have experienced, and expected, customers to "walk the floor" with their items for valuations from multiple dealers. That is kind of the whole point of a coin show, to have multiple dealers present and thus multiple opinions available.
If your second dealer doesn't want the job, this still leaves you with needing to find a third dealer that was willing to offer you their services.
From the point of view of the dealer, perhaps they were just pressed for time and, while happy to help you out in your situation, felt that the other dealers would have more spare time and/or expertise to help you out. But in that situation, I would expect the dealer to just say so, and perhaps recommend someone else to take the job instead. It still seems odd to me.
Roman emperor Marcus Aurelius, "Meditations"
Apparently I have been awarded the DPOTD twice.
There is nothing around with shopping them around. Offers can vary especially with market conditions or dealer inventory needs, investment strategy.
Dan in coin club (abt 60 slabs) - took to 3 different dealers at a major show. One 25 pct below CDN bid, second one 20 pct below CDN bid, dealer no 3 was 15 pct below CDN bid. He went with dealer no 3.
As far as estates - many I have seen only the crap is left.