Frequently Asked Questions

  • An appraisal is an opinion of value of a subject property determined for a particular purpose. The purpose or reason for an appraisal could be for insurance needs, tax planning, estate planning or filing, and donations, among others. Appraisals are most often presented as written reports containing descriptions of the subject property, market research, and valuation conclusions.

    There are many other reasons an appraisal might be right for you. At times, an appraisal might be formally required by the CRA, CCPERB, IRS, or your insurance carrier. For example, when a client makes a charitable gift in kind or donation (depending on the value of the works included) an appraisal might be required in order to claim any tax benefits. An insurance provider might request a formal appraisal in order to confirm the appropriate coverage for the subject property.

    If you are unsure whether an appraisal is right for you, our firm would be happy to consult on the matter.

  • The most commonly used value types are Fair Market Value and Replacement Value.

    Fair market value is defined as the price at which the property would change hands between a willing buyer and willing seller, neither being under any compulsion to buy/sell and both have reasonable knowledge of the relevant facts.

    Replacement Value, often referred to as Retail Replacement Value, is defined as the highest reasonable value reported in order to replace a property with another of a similar age, quality, origin, provenance, and condition. The inclusion of either “Retail” or “Auction” Replacement Walue specifies the market wherein the value would be determined.

    Although there are many other types of values, these two are the most widely and frequently used.

  • Depending on a client’s needs and the works being included, an appraisal generally involves the following steps:

    1. Based on the number of works & artists in the collection, as well as the purpose of the appraisal, an estimate and timeline will be provided to the client. Once the estimate is accepted, an agreement will be provided to the client.

    2. The collection will be inspected in person or virtually. In some cases, digital images, cataloging, and condition reports may be provided in lieu of an inspection.

    3. The appraiser will conduct required market research concerning the artist(s) included in order to meet the necessary due diligence and to establish valuation results.

    4. The appraisal document and any supporting documents are finalized for the client’s specific use and provided electronically.

    5. Depending on the complexity of a given project and time required for an inspection and research, an appraisal project can take anywhere between 30 days and 6 months.

  • Collections management projects are uniquely coordinated based on the client’s needs. In general, the firm assists in documenting artworks and recording all pertinent physical and provenance details. This information can be provided in a format that functions with existing collections management software or the firm can consult on other long-term management solutions.