Do Steinways appreciate?

[atonal@telusplanet.net]

From:           	Wimblees@AOL.COM
Date sent:      	Mon, 24 May 1999 23:13:57 EDT
Subject:        	Do Steinways appreciate?
To:             	Pianotech@ptg.org
Send reply to:  	pianotech@ptg.org

> Several times now in the past couple of weeks, I have had customers tell me 
> that the Steinway dealer in town is saying that Steinways appreciate in 
> value. I heard there was even an article which quoted Henry Steinway as 
> saying Steinways appreciate in value at a rate of 10% per year. 
> 
> Last week I appraised a Steinway S for a guy. He told me he paid $20,000 for 
> it 15 years ago, being told the piano would appreciate in value. Now he wants 
> to sell it to make money. But he told me last week the dealer offered him 
> only $13,000. So he called me to get a second opinion. I told him I might be 
> able to get $22,000 if I sold it out of my store, and he might be able to 
> sell it out of his house for about $20,000, if he advertised it a lot, and 
> waited. (Since the dealer offered him $13,000, I will assume he will ask 
> $26,000, but probably sell it for about $22,000.) 
> 
> Doing the math, if Steinways really do appreciate at 10% per year, a Steinway 
> S bought 15 years ago for $20,000 would now be worth $82,446.  Obviously it 
> is not. Anyone out there wanting to give an answer to this. Do Steinways 
> really appreciate in value?  If so, how much? What criteria does Steinway use 
> to make this claim? Do Steinways appreciate more than other brands?
> 
> Curious minds want to know.
> 
> Willem Blees


Yep, not only is the "Steinway value appreciation" line alive and 
well, I had a person phone me who was miffed that I wouldn't offer  
10K for a 1098 vertical, ca 1978 because that's what they had been 
told it was worth. Now, I couldn't impress on this person that I was 
in this business to make some money as well, and that they had  
been misinformed regarding the value of the instrument. He thought 
that if he held onto it long enough, he could return on his 
investment, kinda like a term deposit.

It's a little like these guys who buy Harley Davidson motorcycles 
for the investment value, they seem grossly misinformed regarding 
what their cycle is actually worth (and judging by the sheer 
numbers of used Hogs for sale vs. other brands, investment value 
seems like a joke).

Regarding actual increase of value in new pianos, this won't seem 
to rise appreciably until a few years go by and the new piano prices 
rise considerably. Then the piano you bought 10 years ago for 10K 
might be able to sell for 10K or possibly more, depending on new 
prices, instrument condition, and general availability of that type of 
piano in your area.  

Regards, 


Rob Kiddell RPT
Atonal Piano Service
http://www.telusplanet.net/public/atonal/