Thank you for contacting Mearto with your appraisal inquiry.

It is a cute teddybear. Such antique teddybears are being offered at auction on a regular basis.
It is a very nice vintage teddybear with a nice and sweet look on the face. There were quite a lot of teddybear manufacturers around the middle of the 1900s when I believe this teddy was made. The German brand Steiff are know for thier well made, look alike teddy bears with a button in the ear and a hump on the back and long limbs. Many English teddybear manufacturers made similar bears however without the hump on the back and with slightly shorter limbs.
I am not quite sure that your bear is a Steiff because of the length of the limbs and the missing hump on the back however it is quite odd that there is a hole/button in the ear as this was the Steiff signature.
The teddy is probably with mohair fur, filled with sawdust and have velvet or felt padded paws. Made in the middle of the 1900s. Despite the fact that I cannot determine the manufacturer of the teddy I believe that it would attract the attention of both collectors and dealers if it came up for auction. The price may even surprise if it is determined that it is a Steiff however that would need live examination of the teddy bear.

The estimate provided is for a well-advertised specialised online toys auction, where I believe the teddy has the best chance of realising its fullest potential. However, there is no measurement for the sentimental value you might attach to your grandfathers teddybear. Retail "asking prices" can be higher and vary.

Please let me know if you have any additional questions. I’m happy to help.
Thank you