When you want to invest in art valuation, it’s important that you understand a little bit about how the process actually works. While learning about the art valuation process might not certify you to value art yourself, it will give you a good baseline when you meet with an art valuation expert. Here’s a little bit more info on how art is typically valued.
The first thing that an appraisal will tell you is what the retail replacement value and fair market value are. The retail replacement value is what you may have paid for a piece of art at an auction or a gallery event, while the fair market value is what the IRS identifies as the donation value.
This number is closer to what you can expect to receive if you decide to sell the piece you’re having valued at an auction in the future.
If you’re thinking about donating a piece of art, it’s important that you tell your art appraiser that. This important piece of information can help inform your appraiser of how to value the piece of art you’ve brought them. They can also tell you whether you have a suitable piece for the collection you intend to donate it to.
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