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Appraisal Services
Different Type of Appraisal = Different Type of Value
Many people do not realize that an appraisal is not a blanket document that can be used in any circumstance. The purpose for the appraisal will determine the type of value. For example, an appraised value for a painting will differ if you are seeking insurance coverage versus declaring bankruptcy. In the latter case, objects must be disposed of swiftly in the marketplace, and therefore may not realize an ideal price. The value may be the same in different cases, but just as often, it is not. It is important to clearly specify why you need an appraisal. Are you seeking insurance coverage for your high value art objects? Are you in the process of planning your estate and want to value your fine art possessions to assure equitable distribution among your heirs? Are you seeking to sell an object, and if so, what is your time frame? This information is needed to determine what type of value is sought.
Appraisal reports are written for specific purposes, including the following:
- Insurance Coverage
- Insurance Replacement Value – In case of loss or damage
- Market Value – Seeking to sell an object
- Estate Planning – Determining Fair Market Value in order to assist you and your advisors (financial and legal) in devising an estate plan
- Charitable contributions to museums or other non-profit institutions; the IRS requires a qualified appraisal report for objects valued at $5,000 or higher to be filed with them, in addition to other specific forms pertaining to contributions.
- Divorce Settlement
- Dissolution of corporate art assets
- Collateralizing works of art
- Probate
The Appraisal Process
- On site inspection – each object is carefully inspected, measured and described in notes.
- Work is photographed.
- Research conducted to ascertain appropriate market place, whether regional, national or international. The work is then compared to other objects by the same maker or in the same class of objects that have recently sold at auction or at retail. Consultations with numerous people including dealers, auction houses and specialists.
The Product: Two bound copies stating an opinion of value with a careful explanation of the process and analysis and photographs of the object and comparables.
***A copy of the report will be kept in a locked and secure location for FIVE YEARS after the date of the report, in case a copy is needed at a future time.
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