Art appraisals

The appraisal

As an Accredited Member of the Appraisers Association of America and a court-appointed expert (CTU, art sector) at the Court of Milan, for many years I have valued individual works and entire private and institutional collections. My appraisals are prepared in accordance with the Uniform Standards of Professional Appraisal Practice (USPAP) or the International Valuation Standards (IVS), the international standards of the profession.

My field is modern and contemporary art: paintings, sculpture, works on paper, photography, multiples and editions.

Formally, an appraisal is a written, reasoned and signed opinion of value. It is an essential tool whenever the economic value of a work has to be presented to third parties and must withstand formal scrutiny by co-heirs, insurance companies, the courts, notaries and banks.

How I prepare an appraisal

Every appraisal starts from the purpose for which it is requested, because the purpose determines which value is to be established: for example fair market value for an estate or a donation, or replacement value for insurance cover. I set the date to which the valuation refers, examine the work in person, front and back, and gather the available documentation on provenance, exhibitions and literature.

The value is supported by comparison with comparable works sold on the market and by the documentary evidence gathered. The appraisal states the assumptions and limiting conditions on which it rests. One of these is the authenticity of the work, which the appraisal does not certify: it assumes it, on the basis of the documentation and the examination, and says so explicitly. This is not uncritical acceptance: if doubts arise, I report them in the appraisal and, where needed, propose further research before proceeding.

When an appraisal is needed

Insurance cover and damage

Taking out or renewing a fine art policy requires an up-to-date, documented valuation. In the event of a claim I prepare damage appraisals, which quantify the physical damage to the work and the resulting loss of market value. (Contractual definitions and policy terms remain the responsibility of the broker or the insurance company.)

Estates and divisions

In an estate or a division of assets, the correct identification of the works and an independent, documented valuation are the basis of any agreement. An impartial appraisal gives all heirs the same starting point and allows them to choose with full knowledge between dividing the works and selling them. (Tax and succession formalities remain the responsibility of the notary and the accountant, to whom the appraisal provides the necessary technical values.)

Donations, loans and collateral

An appraisal is also needed when a work is donated, lent to an exhibition or offered as collateral for a loan. In each of these cases a sound, defensible value is required, reasoned so that whoever receives it can verify it. (Verifying title to the work and any restrictions on it is the task of the bank and the lawyers.)

Financial statements and wealth reporting

Family offices, trusts, foundations and companies that hold works of art often have to report them in periodic statements and financial accounts, alongside the other components of their assets. I prepare appraisals that give the works a documented and reasoned value, to be updated over time, so that the collection is treated with the same care as other assets. (Accounting criteria and tax treatment remain the responsibility of the accountant and the auditor, to whom the appraisal provides the necessary technical values.)

Disputes

In disputes involving works of art I act as a court-appointed expert (CTU) or a party-appointed expert (CTP): this service is described on the page dedicated to expert consultancy in litigation.

Periodic updating of values

The value of a collection changes over time, and its valuation should be reviewed regularly. I recommend reviewing values at intervals of one to five years, depending on the type of collection: more often when the works are of high value or the artists' market is moving quickly. An outdated valuation may no longer reflect current prices, with consequences for insurance cover and wealth planning.