How to Have Art Appraised: The Official Process

An art appraisal provides a professional, objective estimation of an artwork’s value, conducted by a qualified expert. Appraisals serve multiple purposes for art owners, including obtaining insurance coverage and accurate estate planning. An appraisal also offers a clear valuation for sale or charitable donation, facilitating informed financial decisions.

Gathering Information for Appraisal

Before engaging an art appraiser, gather comprehensive documentation related to your artwork. This includes provenance records, detailing the artwork’s history of ownership from its creation to the present day. Purchase receipts, invoices, and records of previous sales or transfers provide a clear financial history. Documentation of the artwork’s exhibition history and artist information can significantly contribute to understanding its context and value. Previous appraisal reports, if available, offer historical valuation data and comparative data for the current assessment.

Beyond historical documents, preparing visual and physical information about the artwork is important. High-quality photographs, including detailed shots of the front and back, are necessary for the appraiser’s review. Taking accurate measurements of the artwork, with and without its frame, provides essential dimensional data. A thorough assessment of the artwork’s physical condition should also be made, noting any signs of damage, wear, or past restoration. Providing this comprehensive information helps streamline the appraisal process and supports a more accurate valuation.

Choosing an Art Appraiser

Selecting a qualified art appraiser is a crucial step in obtaining an accurate and reliable valuation. Seek appraisers certified by recognized professional organizations like the Appraisers Association of America (AAA), the American Society of Appraisers (ASA), and the International Society of Appraisers (ISA). Membership signifies adherence to a strict code of ethics, continuing education requirements, and compliance with the Uniform Standards of Professional Appraisal Practice (USPAP), ensuring impartiality and objectivity.

When searching for an appraiser, consider their specialization in the relevant art category. Appraisers often focus on specific areas, such as fine art, decorative arts, or particular historical periods and styles. Verifying their experience and background in appraising similar types of art is important, as this specialized knowledge allows them to accurately assess authenticity, market trends, and other pertinent factors.

Interview prospective appraisers and ask specific questions. Inquire about their credentials, including certifications and years of experience within their specialization. Discuss their fee structure; appraisers typically charge an hourly rate or a flat fee. Confirm fees are not contingent upon the final appraised value, as this practice can compromise objectivity and is considered unethical by professional standards and the IRS. Hourly rates for art appraisers can range from $150 to $400 or more, depending on experience, specialization, and location.

Ask about the type of report they provide, their research process, and how they handle confidentiality. Independence and objectivity are paramount for an appraiser, ensuring their valuation is unbiased and not influenced by personal interests or external pressures. This impartiality safeguards the appraisal’s integrity and ensures its acceptance by institutions like the IRS or insurance companies.

The Appraisal Process

Once an appraiser is engaged, the formal appraisal process begins with an initial consultation to define the scope of work and intended use of the report. This helps the appraiser determine the appropriate valuation approach and market level for research. The appraiser then conducts a thorough physical examination of the artwork, which may occur on-site or off-site if safely transported. During this examination, the appraiser meticulously inspects the artwork’s condition, identifying any damage, repairs, or signs of restoration, and confirms its physical attributes.

After physical inspection, the appraiser undertakes extensive research to support their valuation. This involves investigating the artist’s background, career trajectory, and market reputation. They also conduct a comprehensive market analysis, reviewing sales data of comparable artworks by the same or similar artists. This research includes consulting auction records, private sales data, and gallery prices to establish current market trends.

Several factors are considered during this research and analysis phase to determine the artwork’s value. Authenticity is a primary concern, as the appraiser verifies that the work is genuinely by the attributed artist. Provenance, the documented history of ownership, is thoroughly investigated, as a strong and clear ownership chain can significantly enhance an artwork’s value and confirm its legitimacy. The artwork’s condition, including any signs of deterioration or restoration, directly impacts its market appeal and value.

Other considerations include the rarity of the piece, its unique characteristics, and its significance within the artist’s oeuvre or art history. Current market trends, broader economic conditions, and the artwork’s subject matter, style, and medium also influence its valuation. The appraiser synthesizes all this information to formulate an objective and supportable opinion of value, which forms the basis of the final appraisal report.

Understanding Your Appraisal Report

The final deliverable from the appraisal process is a comprehensive appraisal report, a formal document detailing the appraiser’s findings and valuation. This report typically includes a detailed description of the artwork, specifying its title, artist, medium, dimensions, and any unique identifying marks. High-quality photographs of the artwork are integrated into the report for visual documentation. A clear statement of purpose is also included, outlining why the appraisal was conducted, such as for insurance, estate valuation, sale, or donation.

The report further explains the valuation methodology used by the appraiser, detailing the research and analysis undertaken to arrive at the stated value. It also includes the appraiser’s qualifications and professional credentials, affirming their expertise and adherence to appraisal standards. Understanding the different types of values presented in an appraisal report is important, as each serves a distinct financial purpose.

For charitable donations, estate planning, or general sale purposes, the report will often provide a Fair Market Value (FMV). The Internal Revenue Service (IRS) defines FMV as “the price at which the property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts.” For donations valued over $5,000, a qualified appraisal specifying FMV is required for tax deduction purposes and must accompany IRS Form 8283. For estate tax purposes, art objects are also valued at their FMV as of the date of death or an alternate valuation date.

For insurance purposes, the report will typically state a Replacement Value. This value represents the estimated cost to replace the artwork with a similar piece of comparable quality, condition, and provenance in the appropriate market within a reasonable timeframe. Replacement Value often includes associated expenses such as sales tax, import duties, and commissions that would be incurred in acquiring a substitute piece. Another less common but relevant valuation is Marketable Cash Value, which represents the anticipated net proceeds from an orderly sale after deducting selling costs, often used in situations like divorce settlements or business dissolutions.