Appraisals and Valuations

The valuation of a work of art depends on far more than recent market results. Attribution, provenance, condition, quality, rarity, subject, period, dimensions, exhibition history and the depth of the relevant market may all materially affect the conclusion. The significance of each factor varies from one object to another, which makes a reasoned assessment more important than the mechanical application of comparable sales.

The purpose of the valuation is equally decisive. A figure prepared for a contemplated sale may not be appropriate for insurance, taxation, inheritance, lending, litigation or another legal or financial context. The relevant date, market, basis of value and intended use must therefore be established before the analysis begins. Changes in attribution, condition, scholarship or market conditions may also require an earlier valuation to be reconsidered.

Market evidence must be assessed critically rather than treated as interchangeable data. Comparable transactions may differ in quality, condition, provenance, date, venue or contractual circumstances, and unusually strong or weak results can distort an analysis if considered without context. Private-market evidence may also be relevant where sufficiently reliable and appropriate to the purpose of the valuation.

A formal appraisal should make clear both the conclusion reached and the reasoning that supports it. The scope of examination, sources relied upon, assumptions, limitations and degree of certainty should remain proportionate to the intended use of the report. Independence of judgment is essential throughout: the conclusion must follow from the evidence and the applicable methodology, not from the interests of any party to the transaction or dispute.