The main advantage of engaging a professional art appraiser is to ensure that you receive a precise and well-documented valuation, but there is other factors to consider which we'll cover in this article.
The contents below is applicable to individual art collectors or employees of organisations who may be involved in areas such as facilities management, asset management, or finance.
Accurate Market Value
A professional appraiser provides an accurate assessment of your artwork's current market value. This valuation is based on comprehensive market analysis, taking into account recent sales of similar works, the artist’s reputation, the artwork's condition, and other pertinent factors such as the size, medium, and provenance.
Engaging a professional will ensure they have access to relevant databases, experience, and knowledge to provide a fair assessment.
Insurance Purposes
Many of our clients engage us for art valuation for the purpose of insurance. Our valuation certificates are widely accepted by insurers both in terms of ensuring appropriate coverage and to support insurance claims in situations where your artwork may have been damaged.
As an example, we often see cases where artworks are either damaged during transport [i.e., parties moving to Singapore from overseas] or by third party contractors [i.e., during a renovation]. What we have seen in these situations is two potential scenarios:
- We are engaged by the client whose work has been damaged because they are required to provide a third party assessment to prove the value of the work. This is either to claim against their own insurance or to seek damages from the vendor who has caused the damage.
- We are engaged by the party that is responsible for the damage. In this case we often find situations where individuals are seeking significantly higher damages than the true market value of the artwork.
In all cases, having an independent third party with appropriate knowledge and experience to assess true market value ensures that (a) appropriate insurance coverage is provided, (b) you are fairly compensated in the event of damage, or (c) you don't over-compensate in the situation where an end client inflates the value of their artwork.
Asset Tracking
For organisations in particular they often require annual assessment of their artwork collections both for insurance purposes and for general asset management. Hiring a professional art appraiser ensures accurate and consistent assessment of the artworks over time and enables the organisation to effectively track their assets and ensure appropriate insurance coverage is provided.
We handle art valuation for a significant number of major organisations in Singapore. Aside from providing regular artwork valuation we also provide condition reports, storage, maintenance & repair, along with other recommendations regarding conservation.
Estate Planning and Inheritance
For estate planning, knowing the value of your art collection is crucial. If your art collection makes up a significant portion of assets, understanding the value of your pieces may be helpful in outlining your wishes via your will.
Charitable Donations
Donating artwork to charity can be used to offset your income tax obligations. In some scenarios you may benefit from having a professional appraisal document to outline the true market value of the work prior to handing over to your charity of choice.
A professional appraisal can also work to enhance the recognition of your donation by providing a credible valuation that highlights the significance and worth of the contributed artwork.
This may help for example if the artwork is being used in a charity auction or for various other purposes as the charity can also leverage such certification in the process of auctioning the work and may fetch a higher price as a result.
Legal Documentation [i.e., in case of divorce]
As painful as something like divorce may be, it is important to ensure that you both properly understand the value of your assets to ensure a fair division of assets. Engaging an independent third party to properly document and appraise your artwork collection will give both parties clarity on the value of each work and ensure that this information can be effectively leveraged in negotiating the division of matrimonial assets.
In the case of a contested divorce, this documentation could also be leveraged in court proceedings.
Personal Satisfaction and Knowledge
Understanding the value and history of your art can deepen your appreciation and connection to the piece. This knowledge can enrich your overall experience as a collector or owner. Whilst not every work will necessarily be valuable, sometimes it can also help to have this confirmed such that you can make an educated decision on whether you wish to retain the work long term.
Conclusion
Engaging a professional appraiser for your artwork is a prudent decision with numerous benefits, from financial and legal protection to personal satisfaction and strategic investment insights. Whether for insurance, sales, estate planning, or simply to gain a deeper understanding of your collection, a professional appraisal is an invaluable service that ensures you are well-informed and prepared for any situation involving your art.