What is art appraisal? Art appraisal is the process of determining the monetary value of a piece of art. Can I appraise my own art? While you can research your art, it’s best to use a professional for an accurate valuation. Who is a qualified art appraiser? A qualified appraiser is someone with demonstrated expertise in the specific type of art being valued and who adheres to ethical appraisal standards.
Art is more than just a beautiful object; it can be a significant investment. Knowing how to appraise art is crucial for insurance, sales, donations, estate planning, and simply for your own peace of mind. This guide will walk you through the ins and outs of art valuation, from determining art value to finding a professional art appraisal.
The Art Appraisal Process: A Step-by-Step Approach
The art appraisal process is systematic and requires careful attention to detail. It’s not just about guessing a price; it involves research, analysis, and expert knowledge.
1. Identification and Documentation
The first step in how to value artwork is to thoroughly identify the piece. This includes:
- Artist: Is the artist known? Is it a well-recognized name or a lesser-known artist?
- Title: What is the official title of the artwork?
- Date: When was the artwork created?
- Medium: What materials were used (e.g., oil on canvas, watercolor on paper, bronze sculpture, mixed media)?
- Dimensions: What are the height, width, and depth (if applicable) of the artwork?
- Signature/Markings: Where is the artist’s signature located? Are there any other marks, labels, or inscriptions on the front or back?
- Condition: What is the physical state of the artwork? Are there any damages, restorations, or signs of wear?
Gathering all this information is vital. It forms the foundation for any subsequent art appraisal methods. High-quality photographs from various angles, including close-ups of the signature and any condition issues, are also essential.
2. Research and Comparables
Once the artwork is identified, the next phase involves research. This is where art market analysis comes into play.
Gathering Information on the Artist
- Artist’s Career: What was the artist’s professional trajectory? Were they established during their lifetime? Did their reputation grow after their death?
- Artist’s Influence: Did the artist have a significant impact on art history? Are they represented in major museum collections?
- Rarity: How many works did the artist produce? How many are in a similar style or period?
Finding Comparable Sales
This is a critical aspect of determining art value. Comparables, often referred to as “comps,” are sales of similar artworks that have recently occurred in the market.
- Similar Artist: Ideally, you want to find sales of works by the same artist.
- Similar Period/Style: If works by the same artist aren’t available, look for works from the same artistic period or in a similar style.
- Similar Medium and Size: The medium and dimensions should be as close as possible to the artwork being appraised.
- Similar Condition: The condition of the comparable works should also be taken into account.
Sources for finding comparable sales include:
- Auction Records: Major auction houses (Sotheby’s, Christie’s, Phillips, etc.) publish their sales results. Online databases often aggregate this information.
- Gallery Sales: Reputable galleries can provide information on recent sales of their artists.
- Art Market Publications: Industry magazines and journals often feature articles on market trends and significant sales.
3. Condition Assessment: Authenticating Art Value
The condition of an artwork significantly impacts its value. Even a masterpiece can lose substantial worth if it’s damaged.
Common Condition Issues
- Surface Dirt and Grime: Accumulation of dust and debris.
- Cracking/Crazing: Fine lines or fissures in the paint layer.
- Flaking/Loss: Paint lifting or falling off the surface.
- Tears/Punctures: Damage to the canvas or paper support.
- Discoloration/Yellowing: Especially common in varnishes.
- Water Damage: Stains or warping from moisture.
- Previous Restorations: The quality and visibility of past repairs.
When getting art appraised, a professional will meticulously examine the condition. Minor, stable cracks might have less impact than significant paint loss or tears. Restorations can be a double-edged sword; a good restoration can preserve an artwork, while a poor one might detract from its value.
4. Authenticating Art Value: Provenance and Experts
Authenticating art value is about confirming the artwork’s legitimacy and attributing it correctly.
Provenance
Provenance refers to the history of ownership of an artwork. A strong provenance, tracing ownership back to the artist or reputable collectors, adds significant value and confidence. Documentation like receipts, exhibition catalogs, letters, and previous appraisal reports can all contribute to provenance.
Expert Opinion
For unique or high-value pieces, expert opinion is invaluable. This could involve consulting with:
- Art Historians: Specialists in a particular artist, period, or movement.
- Conservators: Experts in the physical condition and materials of art.
- Fellow Appraisers: Especially those who specialize in the same type of art.
Their knowledge can help confirm authenticity, provide insights into the artist’s intent, and offer a more nuanced valuation.
Art Investment Appraisal: Factors Influencing Value
Art investment appraisal considers various factors that drive market demand and, consequently, value.
1. Artist’s Reputation and Demand
The most significant factor is often the artist’s name recognition and the current demand for their work. Established artists with a strong exhibition history, critical acclaim, and presence in major collections command higher prices. Emerging artists can also see rapid value increases if they gain traction with critics and collectors.
2. Rarity and Availability
Works by prolific artists are generally less valuable than those produced in limited quantities. If an artist created only a few pieces in a particular style or medium, those pieces will typically be more sought after and valuable. Scarcity plays a significant role in determining art value.
3. Subject Matter and Aesthetics
While subjective, certain subject matters can be more popular with collectors than others. For example, portraits, landscapes, or still lifes might appeal to a broader audience than highly abstract or challenging themes, depending on the market at the time. The overall aesthetic appeal, originality, and emotional impact of the artwork also contribute.
4. Size and Medium
Generally, larger works command higher prices, provided they are well-executed and desirable. However, this isn’t always true; a small, exquisite piece by a major artist can be more valuable than a large, less accomplished work. The medium also matters; oil paintings on canvas often fetch higher prices than works on paper, though this can vary based on the artist and their chosen media.
5. Condition and Presentation
As discussed earlier, excellent condition is paramount. Presentation, such as a high-quality frame or professional mounting, can also influence perceived value.
6. Provenance and Exhibition History
A documented history of ownership, especially if it includes significant collectors or institutions, adds considerable value and authentication. Inclusion in important exhibitions or publications further enhances an artwork’s prestige and market desirability.
7. Market Trends and Economic Factors
The art market is influenced by broader economic conditions. During economic booms, art sales often increase, and prices can rise. In downturns, the market may soften. Art market analysis involves staying abreast of these trends. The tastes and preferences of collectors also evolve, impacting demand for certain artists or styles.
Art Appraisal Methods: How Value is Calculated
Several art appraisal methods are employed by professionals to arrive at a fair valuation.
1. The Sales Comparison Approach (Market Approach)
This is the most common method. It involves comparing the subject artwork to similar pieces that have recently sold.
- Identify Comparables: Find recent sales of artworks by the same artist, in the same medium, of similar size, period, and condition.
- Adjust for Differences: Make adjustments for any differences between the subject artwork and the comparables. For example, if a comparable work is in superior condition, its sale price would be adjusted downwards to make it comparable to the subject artwork. Conversely, if the subject artwork has a superior provenance, its value would be adjusted upwards.
- Arrive at a Value: Based on the adjusted comparable sales, an estimated value for the subject artwork is determined.
2. The Cost Approach
This method is less common for unique artworks but can be used for decorative arts, antique furniture, or art created with valuable materials. It estimates the cost to replace the item with another of similar utility, age, condition, and quality. For unique paintings or sculptures, this approach is generally not applicable as their value lies in their artistic merit, not their material cost.
3. The Income Approach
This method is rarely used for fine art but is relevant for art that generates income, such as a film set or an art installation used in a commercial context. It involves calculating the present value of future income streams the artwork is expected to produce.
For most fine art appraisals, the Sales Comparison Approach is the primary methodology.
Getting Art Appraised: When and How
Knowing when to get your art appraised and how to go about it is crucial for effective art valuation.
When to Get Art Appraised
- Insurance: To ensure adequate coverage, especially for a new acquisition or if the value of your collection has likely increased.
- Estate Planning: For distributing assets, calculating estate taxes, and ensuring fair division among heirs.
- Donations: To determine the deductible amount for charitable contributions to qualifying organizations.
- Sale: To establish a fair asking price or to understand the potential return on investment.
- Liquidation: For divorce settlements, bankruptcy, or probate.
- Curiosity: Simply to know the value of a piece you own.
How to Find a Qualified Appraiser
This is a critical step in getting art appraised. Not everyone who claims to be an appraiser is qualified. Look for:
- Credentials: Appraisers often have certifications from professional organizations. In the U.S., prominent organizations include the Appraisers Association of America (AAA) and the American Society of Appraisers (ASA). These organizations have strict membership requirements, including education, experience, and adherence to ethical codes.
- Specialization: Ensure the appraiser specializes in the type of art you own (e.g., Impressionist paintings, contemporary sculpture, antique prints). A generalist appraiser may not have the in-depth knowledge needed for accurate art valuation.
- Experience: A seasoned appraiser will have years of experience and a proven track record.
- Objectivity: A qualified appraiser will provide an unbiased opinion of value and will not buy the art they appraise. This avoids conflicts of interest.
- Insurance: Reputable appraisers carry their own Errors & Omissions (E&O) insurance.
The Appraisal Report
A professional appraisal will result in a detailed, written report. This document should include:
- The appraiser’s qualifications.
- A clear description of the artwork, including medium, dimensions, and condition.
- High-quality photographs of the artwork.
- The basis for the valuation (e.g., comparable sales).
- The determined value, clearly stated (e.g., Fair Market Value, Replacement Cost Value).
- The intended use of the appraisal (e.g., insurance, sale).
- The date of the appraisal.
Fees and Costs
Appraisers typically charge an hourly rate or a flat fee per item. Be wary of appraisers who charge a percentage of the artwork’s value; this is a red flag and is considered unethical by most professional appraisal organizations.
DIY Art Valuation: What You Can Do
While professional appraisal is recommended for official purposes, you can do some preliminary research yourself to get a general idea of your artwork’s potential value. This can help you prepare for a professional appraisal and make informed decisions.
1. Research the Artist
- Online Art Databases: Websites like Artnet, Artsy, and Invaluable offer extensive databases of artists, artworks, and auction results.
- Museum Collections: Check if the artist is represented in major museum collections. This is a strong indicator of their significance.
- Art Books and Catalogs: Look for books or exhibition catalogs that feature the artist.
2. Check Auction Records
- Search auction house websites for past sales of works by the artist. Pay attention to when the sales occurred, as market values fluctuate.
- Note the medium, size, condition, and any unique characteristics of the sold works.
3. Assess the Condition
- Carefully examine your artwork for any signs of damage, such as tears, stains, fading, or frame damage.
- Consider whether any professional restoration has been done.
4. Document Everything
- Take clear, well-lit photographs of the front, back, and details like the signature.
- Gather any documentation you have regarding the artwork’s history of ownership, previous sales, or exhibitions.
Limitations of DIY Valuation
It’s important to remember that a DIY appraisal is not a substitute for a professional one. It lacks the expert knowledge, access to comprehensive databases, and formal methodology required for accurate art valuation. Without professional expertise, it’s easy to misjudge condition, authenticity, or market demand.
Frequently Asked Questions About Art Appraisal
Here are some common questions people have about how to appraise art:
Q1: How much does an art appraisal cost?
A1: Appraisal fees vary depending on the appraiser’s experience, location, and the complexity of the artwork. Hourly rates can range from $100 to $500+, or a flat fee might be charged per piece. Professional appraisers do not charge a percentage of the artwork’s value.
Q2: How long does an art appraisal take?
A2: The time frame depends on the number of items, their complexity, and the appraiser’s schedule. A single piece might take a few hours to research and document, while a large collection could take weeks or months.
Q3: What is the difference between an appraisal and a valuation?
A3: In the context of art, these terms are often used interchangeably. However, “appraisal” typically refers to a formal, written opinion of value by a qualified professional, while “valuation” can be a broader term that may encompass informal assessments or market price indications.
Q4: Can an art dealer appraise my art?
A4: While art dealers have knowledge of the market, they may not be qualified appraisers. Their primary business is selling art, which can create a conflict of interest. For an unbiased opinion, seek a certified appraiser.
Q5: What is “Fair Market Value” for art?
A5: Fair Market Value is the price at which property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or sell and both having reasonable knowledge of relevant facts.
Q6: How often should I get my art appraised?
A6: It’s advisable to get your art appraised every 3-5 years, or whenever there are significant market changes or changes in the artwork’s condition or your insurance needs.
Q7: What if my artwork is by an unknown artist?
A7: Appraising art by unknown artists is challenging. The value will likely be based on decorative qualities, materials, and market demand for similar, unsigned or unattributed works. The appraisal report will reflect this uncertainty.
Conclusion
Art valuation is a multifaceted discipline that requires expertise, meticulous research, and adherence to ethical standards. Whether you are insuring a cherished family heirloom, planning your estate, or considering selling a piece, knowing how to navigate the art appraisal process is essential. While preliminary research can be helpful, engaging a qualified and reputable professional art appraisal is the surest way to achieve an accurate and defensible valuation for your artwork. By following these guidelines, you can confidently approach the task of getting art appraised and ensure your valuable assets are properly assessed.