HOW IS FINE ART VALUED?

The most basic principle of valuation is to use comparables to determine value.

WHY DO SIMILAR ARTWORKS SELL FOR DIFFERENT PRICES?

In the case of fine art, there is one aspect that is difficult to put a value on and therefore to compare: the artistic merit of the artwork. The market shows us works that look quite similar, yet one sold for 900% more than the other—10 times the price. The reason for the difference is in the artistic merit of each.

WHAT FACTORS INFLUENCE FINE ART APPRAISAL VALUE?

• Who the artist is.
• Rarity.
• The subject matter. What the artwork depicts. How appealing it is.
• The artistic quality, artistic merit. Sometimes combined with technical skill.
• The dimensions. The market pays proportionally more for larger artworks.
• Prominent past ownership. If it used to belong to a famous figure value could be multiplied many times.
• Art-Historical Significance. A pioneering creation. Another difficult-to-pinpoint value factor that can increase an artwork's value severalfold.
• Condition is another aspect that is difficult to quantify, specifically regarding by how much flaws reduce value.
• Extent of Restoration: How much restoration has been performed, and by how much it reduces or enhances the value of the artwork, is another question that tends to elude a straight answer.
• Quality of Restoration: The technical quality of the restoration itself must be appraised, because restoration ranges from disastrous to excellent, with a lot of unsavory mediocrity in between.
• Strength of Authentication: How well documented is it? How strong is the case? Is there a doubt? Is something questionable about it?

HOW MUCH DO ART APPRAISAL ESTIMATES VARY?

The selection of comparanda will have a defining influence. So will our judgment. As appraisers we have wide latitude in valuing for more or for less. The high and low estimates given by auction houses confirm that values are not frozen in place. The average low-to-high spread is for the high to be twice the low.

WHY IS PURPOSE IMPORTANT IN ART APPRAISALS?

As appraisers we must understand the context in which the valuation will be used. This will enable us to deliver a bespoke valuation that uniquely serves your needs, to the best of your interests.

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