Parsons Fine Art Advisory

Services

Appraisals by purpose

The purpose of an appraisal sets the standard of value, and the standard sets the number. An insurance figure and a divorce figure for the same painting can differ threefold, and both can be correct. Start with what the report is for.

Standards of value

Three definitions, and when each applies

StandardDefinitionUsed for
Retail Replacement Value The cost of replacing the item with one of like kind and quality, in the appropriate market, within a reasonable time. Insurance scheduling and claims
Fair Market Value The price at which property would change hands between a willing buyer and a willing seller, neither under compulsion and both reasonably informed. Estate tax, gift tax, charitable donation
Marketable Cash Value What the property would net in a sale, after commissions and costs of sale. Divorce and equitable distribution

Applying the wrong standard is the most common error in personal property valuation, and rarely a small one.

Not sure which

Describe the situation, not the service

Most people arrive with a circumstance rather than a service name. A parent has died, a carrier has asked for documentation, a museum wants the picture, a marriage is ending, a mover dropped something. Describe the circumstance and the practice will say which appraisal you need, or that you do not need one.