What is a cynic? Oscar Wilde defines it perfectly: "a man who knows the price of everything, and the value of nothing". What is something worth? Funny thing is that art has an artistic, cultural and economic value – that’s a lot to understand. One who is to give a valuation of a work of art must master it all. Both the value of the absurd and that of the market. It is a separate field. The value calculation depends on several factors. What are these, and on what basis are the estimates decided? And how do you know that the assumption is correct? I have investigated this of sheer curiosity and here is what I have found thus far...
Let's start with assessment and appraisal. Finding correct estimates of something is done through a value assessment. The value of a work of art is the result of an assessment of art based on knowledge gained from different ferrets, and experience of course. Take for example real estate, when the property is bought and sold, there are usually suggestions for pricing by a real estate agent. Previously, it was common to use a publicly approved appraiser. Today, their main task is to assess the technical condition. In many countries, a distinction is made between an "art appraisal" and an "art valuation" - not so different assessment and appraisal. Sometimes we need an assessment for buying and selling, insurance, probate, litigation, or for loans and financing.
As I have found in Norway, the difference between a price and a valuation of art is not that great. The auction houses use the term estimate. In other countries, a tariff may be an independent legal document. For art, it is not, but a condition report on a work of art can more easily give correct estimates. In many countries, separate certification is required to evaluate art. A valuation can be issued by an auction house, a gallery, an art dealer, or an independent expert in the field of art.
Further on, there is a lot to consider when evaluating art. The actual determination of the value of art is made on the basis of various factors. An "appraiser" can assess the condition himself. For higher values, it is an expert or conservator who issues condition reports. Furthermore, factors such as artist, epoch, size, technique, medium, history, provenance, documentation and literature about the artwork will be important. References to literature, photographs as well as a thorough and good documentation of older art contribute to a good valuation. For modern art, certificates can be crucial. The work's artistic value is also of great importance. Precisely for this reason, good judgment, a trained eye and art historical knowledge are required. The artist's reputation, period, theme and especially medium are important.
Valuation or estimation depends as much on the market as on the work of art itself. As Andy Warhol once said: "A work of art is worth what someone is willing to pay". The market can be measured through published and unpublished sales lists, gallery prices and results from held auctions; "art price indices". It is of great importance what kind of expertise the person performing the assessment has. It is nevertheless conceivable that the assessment will not reflect the market, but rather a repurchase value where possible. The auction houses can issue a price, as well as provide estimates for the auction. Such an assessment does not always reflect the market price, but can be set for strategic reasons.
As a valuation or estimation of a work of art may have different purposes, the content, form, and language may vary. If the document is to be used in countries other than your own, there are often more formalities than in your home country, for example the artist's reputation and that certain conditions are included. A valuation should include physical facts, a description of the artwork, a motive, and a good and thorough justification for the price assessment.
Most art experts have their niches and disciplines. Some names weigh heavier than others. The most common is to use a well-known auction house, but then one should be aware that the estimates are often set low. This is because they think speed of circulation and pay little attention to the seller's wishes or dreams. Many auction houses charge for valuation.
Otherwise, there are many online brokers that offer valuation of art. Just do a simple search on "value art" and you will get a lot of results right away. Many of the brokers have a global network of appraisers so it does not matter what country you come from or what kind of art you have - they have the network they need so that they can also solve your challenges. You can even download apps that tracks the interest of you work of art, and you can also choose to be empowered by precision marketing if you want to sell the art fast. Keep in mind that the price of selling will thus be higher. The faster the sale – the higher the transaction cost will be.
Hope this post was interesting and that you did learn something new about the “art market”.
Thank you for reading!
Cheers
-Olebulls
