Appraising Art Investments
Appraisers, in general, are in the business of making estimates on products in terms of Fair Market Value. Appraising art investments is a great tool in making sure an art investment is secure. Most appraisers are professionals whose business expertise can be invaluable when investing in art.
Appraising expensive and not so expensive art has a valid purpose in the world of art investing. It isn't easy to tell a reprint from a first edition lithograph from an original for a novice. It is for their background in art and appreciation for artistic detail that appraising an item with a professional's help is necessary.
Art investments can be appraised for quite inexpensive prices, to higher fees. Depending on the price and quality of the artwork and credentials of the appraiser, that will determine the fees to be paid. Several things should be considered when an appraiser is chosen to price an item.
The first factor in choosing an appropriate art appraiser would know the accreditation the appraiser received. Being a member of a professional organization like the International Society of Appraisers or the American Society of Appraisers is an added bonus. These associations require the appraiser to be current on art trends as well as market values.
Secondly, asking whether an appraiser has a specific specialty is important. To retain the services of an appraiser who doesn't have experience with your specific art's medium or artist is an exercise in futility. If they have a history with a specific type of art, they will be more able to make a better estimate of worth.
Knowing the appraiser's educational history is also important. If the person has a degree in artistic fields, which would certain bode much better for their art sense. Just as in knowing the education of an artist affects their artistic style, an appraiser's education affects the manner in which they judge artwork.
Certain warning signs can present themselves when working with an appraiser. If they aren't certified with the aforementioned organizations or don't meet the standards of the USPAP, or Uniform Standards of Professional Appraisal Practice, the appraiser might not be worth hiring. These standards are put in place to guard against the predatory practices of uncertified appraisers.
Appraising artwork becomes necessary if an art investor plans on keeping the piece for any length of time and reselling and also for having the painting insured. Also, when a person's complete estate, including artwork is being liquidated, the true financial value becomes a concern. If an investor wants to become a philanthropist, for example, they may also need to appraise a piece for tax purposes when donated.
Hiring an appraiser is an almost unavoidable step for purchasing art investments. Whether doing tax appraisals, fair market appraisals or insurance appraisals, having artwork authenticated this way is a smart choice. Not many industries exist that pay people for their opinions. Appraisals, although more than pure conjecture, often depend heavily on a specific person's personal knowledge and expertise translated into facts and figures.
