Determine the Value of Your Artwork
Art appraisals are an important part of owning art, and for protecting your art investment. Always have a current art appraisal. Art values can change quickly and you will need to adjust your insurance coverage to protect you artwork from loss or damage. You will also need a current art appraisal whenever your art is involved in insurance claims, estate tax, charitable donations, when selling the art, or for equitable distribution. There are several kinds of art appraisal, including Current Fair Market Value and Current Replacement Value. Be sure that you know the difference and get the right type of appraisal to fit your needs.
Definitions
Fair Market Value:
“The highest price estimated in terms of money which an item will bring if exposed for sale in the open market with a reasonable time allowed in which to find a purchaser buying with the knowledge of all the uses and purposed to which it is adapted and for which is capable.”
Sacremento Southern Railroad Company vs. Heibron; 156 California Supreme Court, 1906
Current Replacement Value:
“The price that a buyer would have to pay in order to replace a lost, stolen, or damaged work of art in the current art market. Usually refers to a retail or current dealer price. May also include unusual considerations of time or distance, as noted, required in order to replace the work of art.”