Art Appraisal Services

Our Appraisal Process

The first step in the appraisal process is to determine the purpose of the appraisal. The type of appraisal determines which value is appropriate - fair market value or replacement value. There are three types of appraisal reports. Each one uses a specific type of value. (See types of values below) Once the purpose of the appraisal and type of value is established, a detailed letter of agreement outlining the scope of work is sent to the client. An appointment is scheduled with the client to inspect the collection. An inventory of the collection is taken documenting the artist, title, date, medium and condition. Photographs are taken of each piece. The appraiser starts with extensive research of each piece. The art market data is analyzed and a substantiated and unbiased opinion of value is concluded for each item. The findings are documented in a confidential appraisal report.

Definitions of Appraisal Values

• Fair Market Value. The IRS Statement of Fair Market Value is “the price that property would sell for on the open market. It is the price that would be agreed on between a willing buyer and a willing seller, with neither being required to act, and both having reasonable knowledge of the relevant facts” (Source: IRS publication 561. Revised February 2000). Fair Market Value is the type of value used for Estate Planning, Estate and Inheritance Tax, Charitable Contributions, and Equitable Division of Property.

• Replacement Value. The American Society of Appraisers defines Replacement Value as “an opinion expressed in terms of money 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, as of a specific date.” Replacement Value is the type of value used for Insurance Appraisals

Types of Appraisals

• Insurance Appraisals for Replacement Value

  The importance of understanding your assets and how to protect them is essential. We provide accurate, up-to-date appraisals for insurance coverage that determine replacement value and are compliant with your insurance company’s requirements. Should you incur damage or loss to your art, our accurate replacement values will insure complete compensation. We provide collection inventory and management that will organize you collection. First we start by taking an inventory of your art. A clear description with photographs is the best way to organize. Should you ever need to file a claim, your insurance agent will appreciate the organization.

• Estate Planning and Estate Tax Appraisals for Fair Market Value

  Our comprehensive estate appraisals assist estate planners in establishing a client's assets, facilitate the disposition of estate tax reporting requirements and assist heirs with equitable distribution of property. Estate valuations are essential in planning for division of property after or before a death in the family, divorce, or the dissolution of a family partnership where the collection is an asset. Parties to a divorce or heirs to an estate are often faced with the need to equitably divide personal property according to its value. Appraisers are in the best position to provide an impartial and objective professional opinion of property values to assist with the division process. Our estate appraisals are fully compliant with IRS Valuation Guidelines, the Uniform Standards of Professional Appraisal Practice, and Code of Ethics put forth by the American Society of Appraisers.

• Charitable Contribution

  Charitable Contribution appraisals for fair market value are required by the IRS for qualifying non-cash charitable contributions that exceed $5,000 (Source: IRS publications 526 and 561). The artwork must be officially accepted by the institution on or before December 31st to receive a tax deduction for the same year. The IRS defines fair market value as the “price for which the property would change hands between a willing buyer and a willing seller, neither being under a compulsion to buy or sell and both having reasonable knowledge of the relevant facts”.(Source: Treasury Reg. 20.2031-1)