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Art Appraisals
Whether you collect art for its aesthetic
value, as an investment, or both, having
an independent professional appraisal is
very worthwhile. Moreover, if you hold items
whose value is changing rapidly, have these
appraisals updated on a regular basis. This
is especially important if you buy art insurance,
because it enables you to keep an appropriate
level of insurance -- thereby neither overpaying
for coverage you do not need nor being at
risk of being underinsured.
In theory, a professional appraiser should
provide you with an estimate of the value
of your art based not on its replacement
value but on its potential worth if put up
for sale now in its current condition. However,
depending on the rarity of the art, the expertise
of the appraiser in the domain of your art,
and potentially outside influences on your
appraiser, the appraised value may vary significantly:
- Be wary of appraisals from art dealers. They
have a conflict of interest,
since they would
like to buy from you at artificially
low
prices in order to resell at
a profit.
- An appraisal from an auction house also may
be suspect. They may overvalue your item
to induce you to put it up for auction with
them.
If you insure your holdings,
the larger,
more reputable insurers can help
you find
an appraiser, whose opinion should
be the
basis for the policy value. This
appraiser
should be qualified and independent.
Expect
the appraiser to be a member
of a professional
association such as the Appraisers
Association
of America. If the insurance
company insists
on a given appraiser whose independence
you
question, such as an employee
of the insurer,
consider hiring an appraiser
on your own
for a second opinion. If your
collection
is valuable enough, the second
opinion will
give you added peace of mind. |
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