This is an early 20th century porcelain tea set. Chocolate sets are markedly different in form and shape; a chocolate pot is tall and thin and the cups are usually smaller. The porcelain wares were produced in Germany by Hutschenreuther of Bavaria. The maker mark on these was used from 1925 - 1939. The pieces were made for export and sold as 'white' or 'blank' wares; these also have a pearlescent interior glaze. Blank, or white wares, were then purchased by hobbyist ceramic painters and decorated for either personal use, gifts to friends or to sell. Your set, as you stated, was hand painted by your family member. The fine china market is currently slumped. Sets do not sell for what they used to sell for a few decades ago and the market was further impacted by the Recession. The estimate is for the set and is based on actual recent past recorded auction sales of comparables. Retail 'asking prices' can be higher and vary.