Managing and Building Your Fine Art Collection: The Art Appraisal Process

WHAT IS AN APPRAISER?

An appraiser provides an opinion of value in the form of a professional appraisal report. You will need an appraisal if Fire, Burglary, Divorce, Estate Liquidation, Resale, or Charitable Donation describes your art service needs. You need a professional appraisal to know and document the value of your possessions based on guidelines established in the Uniform Standards of Professional Appraisal Practice (USPAP), valuation theory, and expertise and understanding of the art market. The IRS updated regulations to identify “qualified appraisers” and “qualified appraisals” based on HR4, The Pension Protection Act of 2006, signed into law as of August 17, 2006. The IRS recognizes USPAP guidelines.

Protecting and enjoying your fine art collection is an investment in time. You’ll want to identify a professional appraiser by contacting trade associations such as the American Society of Appraisers (ASA), the Appraisers Association of America (AAA) and the International Society of Appraisers (ISA). You can also work with auction houses and private dealers who are experienced appraisers, however, they may not be members of appraiser trade associations.

Ask for references and get referrals. Make sure your professional has experience in valuing the property.

HOW DO I PREPARE FOR AN APPRAISAL?

Before your appraisal, organize the following items and information:

 Bill of sale, receipts, certificate of authenticity
 Name(s) of artist, title(s) of work and year (if available), medium and dimensions of artwork to be appraised
 Provenance (history of ownership)
 Report of repairs made, condition of artwork
 Exhibition and publication history of artwork

Organizing in advance will cut-down on the time spent for research or onsite inspection. Prices for appraisals vary by region. Appraisers charge a flat fee or per hour/ day/person rate. Request an estimate and approve a letter of agreement. This is your contract for services.

Your professionally prepared written report will include a scope of work, definition of value method applied, item description(s), photographs, glossary, bibliography, appraiser’s credentials, and opinion of value among other items. A report can take several weeks or months to complete. Every appraisal has different variables that dictate production. However, the end result is worth the wait. Update your appraisal every three to five years.

Don’t risk losing thousands of dollars. Call Afua Trading Fine Art and Educational Services. We offer fine art appraisal and consulting services: 908-317-5547.