Range of Art Valuation Services
Our range of art valuation services is extensive and includes valuation for;
- replacement (insurance)
- private sale
- divorce settlement or estate division
- donation under the Australian Government’s Cultural Gifts Program
Which type of art valuation do I need?
To identify which art valuation service is appropriate for your needs, BCFA will take the hard work out and determine;
- (a) the purpose, that is, the reason for which your valuation will be used
- (b) the function, or commercial market in which your valuation will operate
- (c) and the current market conditions at the date of valuation
(a) Some of the purposes (reasons) for art valuations include, but are not exclusive to;
replacement estimates (new or second hand)
disposal estimates (resale)
determination for probate
(b) Some of the functions (markets) of art valuations include, but are not exclusive to;
retail (new or second hand)
all of which may be representative of slightly differing dollar values.
(c) Market Conditions
Within the spectrum of the art industry there are many different markets in which artwork is bought and sold at any given time.
These markets are therefore reflected in the variations of artwork valuations.
Examples of these markets are;
the primary gallery retail market
the secondary dealing gallery retail market
the auction market
private treaty sales by independent dealers and consultants
and also include local market distinctions such as
large and small galleries
noting that each market and its conditions will have its own set of market parameters.
Commonly Used BCFA Art Valuation Purposes (Reasons)
- Insurance Replacement
The purpose of an insurance replacement appraisal is to provide both the client and an Insurance company with details of all correct technical and descriptive information to allow both parties to reach agreement on the basis for an insurance cover. These appraisals are the most common reasons for the issuance of an artwork valuation. Insurance replacement is usually defined as what someone would expect to be charged to replace a commercially equivalent artwork from a reputable outlet within the market specified on the document.
- Disposal (resale)
The purpose of an appraisal for disposal or resale is to provide the client with an estimate of value where the artwork is most commonly offered for resale at auction.
- Private Sale
The purpose of an appraisal for private sale is to provide the client with an estimate of value where the artwork is to be offered for private sale within a commercial retail market dealing gallery or is traded between two parties in a market other than a normal commercial retail gallery situation.
- Divorce Settlement or Estate Division
The purpose of an appraisal for divorce settlement is to provide the parties with suitable valuations which may reflect specific instructions from the legal community and will sometimes include a range of valuation functions (market levels) as given for the purpose of comparison.
The purpose of an appraisal for Probate was used in the past to provide information for the determination of government taxes and charges payable on a deceased estate as death duties. The probate Commissioners definition was “an immediate sale to a willing but not anxious buyer”. It represents the lowest value applicable usually by Forced sale. However, it is now more usual for probate to be used as a valuation for Estate Division as presently there are no Probate taxes.
6. Donation under the Australian Governments Cultural Gifts Program
For further information see our page CGP
Brenda Colahan is considered one of Australia’s most experienced valuers for SMSF's with more than 6000 valuations conducted for trustees since 2004
For comprehensive information about valuation for SMFS’s see our page SMSF
Commonly Used BCFA Art Valuation Functions (Market levels)
- Retail Replacement
An appraisal for “Retail Market Replacement Value” is usually given as the average estimated replacement cost for an artwork purchased at a retail level in the marketplace specified in the document. The value will vary according to the market conditions of when and where the item is purchased.
- Auction Reserve
An appraisal for “Auction Reserve Value” is usually given to reflect the fall of the hammer price of an item without buyer or seller premiums. This value may vary according to market conditions in different geographical regions as well as the differing types of clientele which may attend a specific type of auction.
- Non Forced Sale
An appraisal for “Non-forced Sale Value” is usually given as an estimate of an artworks' reasonable and realizable resale value which may be obtained where there are no time constraints involved for the artworks’ resale in the market place. This type of appraisal is often used for the “purpose” of a private sale or estate division, or sale through a secondary retail market dealer/gallery.
- Forced Sale
An appraisal for “Forced sale” or “Immediate Sale” is usually given as an estimate of the value of an artwork where immediate disposal is required with no time to “trade, bargain or shop for the best price available”. This type of appraisal is often used for the “purpose” of divorce or probate.