The Basics of Fine Art and Painting Appraisals
Whether you have ever tried to buy or sell fine art, you may have wondered about the factors that affect appraising and valuing art. While the valuation of real estate and other property may seem more straightforward, the process for appraising fine art is also clearly defined by certain criteria.
Why You Should Get an Art Appraisal
Many non-collectors have purchased fine art or received art as gifts or as part of inheritances. Knowing the value of piece of art has many benefits, including:
- confirming accurate sales price for potential artwork buyers
- confirming art values for insurance purposes
- determining the amount of care and maintenance a painting or artwork should receive
- ensuring an accurate tax write-off when donating to a non-profit, such as a museum
- helping settle a divorce or an estate dispute
- paying the correct amount in taxes.
The goal of a fine art appraisal is to get an unbiased, expert opinion on what any given piece of art is worth.
Art Appraisers
As a general rule of thumb, the person appraising paintings and art should be accredited by (or be a member of) at least one of the large accreditation entities, which include:
- American Society of Appraisers
- Appraisers' Association of America
- Appraisal Foundation
- Art Dealers Association of America Art.
Professional art appraisers have access to large databases of information about artists, types of art and trends in art sales. This information helps them determine how much a piece of art could sell for and how much it is worth.
The Art Appraisal Process
Like real estate appraisals, fine art and painting appraisals can proceed according to one of the following three basic approaches:
- The Cost Approach is basically an estimate of what it would cost to replace or reproduce the artwork.
- The Income Approach looks at what the owner could potentially earn with the artwork. For example, the collector may choose to lease a painting to a gallery or to a traveling art exhibition.
- The Sales Comparison Approach compares and contrasts the piece of art being appraised with comparable artworks recently sold. For example, if a client owns an early Picasso sketch, the appraiser will look at the recent sales and auctions of Picasso sketches around the world. This will help set the foundation for the value of the painting or artwork.
Through these three approaches, a professional appraiser will accurately estimate the value of art.
While some appraisal firms will offer free art appraisals for qualified applicants, in some cases, they will not charge for an estimate of artwork that turns out to be inauthentic or valueless.
Finding an Appraiser
For fine art paintings, appraisal research may be necessary to find the most qualified appraiser available. Remember that each appraiser likely has only one or two specialties. As a result, to get the most accurate valuation of your artwork, choose an appraiser that specializes in evaluating the type of art you have. For example, if you believe you have an early Rembrandt, find an appraiser who specializes in Dutch paintings from the 17th century.
A good place to start looking for an appraiser who suits your needs is on the Web sites of the agencies listed above. While you also find other independent appraisers online, be careful. You want someone with demonstrated experience and knowledge, which the certification boards and organizations ensure.
You may also want to call your local art museum to see if they can recommend an appropriate appraisal agency.
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