Many traditional galleries have gone online
How to buy art online:
-Consider your overall budget; buy fewer works at a higher individual price
-Find a trustworthy source: a gallery or auction house whom you trust will guarantee your purchase, speak to an art advisor, or ask an appraiser for a professional opinion of value before committing to the sale
-Consider buying fraud protection insurance for larger purchases
-Develop an entire dossier around the work before buying; ask the right questions
-Ask the seller to provide many images, include close ups of signature or any areas of condition concerns, include images of the backside of the work as well
-Condition and authenticity are important for value; ask for a report, get a certificate
-How do you know if a price is fair? Either buy with a big, well-known gallery who will support their artists by advancing their careers and increasing the value of their artwork, or you can buy more speculatively- you might get a better deal when buying, but the trajectory of the artist can be more uncertain
-Buy what you love, buy with your eyes first, but then buy with your ears; listen to your research
-We have entered into a new era; online auctions are here to stay, enjoy the newfound transparency in the marketplace
Selling art online:
-Consider getting an appraisal by a trusted certified professional before approaching a dealer, gallery or third party; know the value of your piece/collection first
ABOUT APPRAISING
What is an appraiser?
An appraiser is a professional with the expertise and credentials needed to evaluate property. While there is no license for personal property appraisers (as with real estate), appraisers should have taken the Uniform Standards in Professional Appraisal Practice (USPAP) course within the past 24 months. USPAP is the guidelines set for for appraisers by The Appraisal Foundation. Read more about USPAP here.
Why hire an Appraisers Association member?
The Appraisers Association of America is an international organization based in New York City with members in cities across the country as well as in Canada, Europe and Asia. In a field with no degree and no license, membership in the Appraisers Association of America is one of the most important credentials to look for in a personal property appraiser. Our members are USPAP compliant and known for the highest standards of ethics, conduct and professionalism. Professional members of our Association are in one of four categories: Certified Member, Life Certified Member, Accredited Member, and Life Accredited Member. Certified is the highest level of membership and a Certified Member always has a designation of AAA after his/her name indicating that they have particular expertise in a specified area.
About the Appraisal Profession
In the appraisal profession, there are five major categories: personal property, real property (real estate), business valuation, machinery and equipment, and gems and jewelry. Although the organization has members in several of these areas, the majority of our members are personal property appraisers specializing in the fine and decorative arts, jewelry, and household contents. Their areas of specialization range from paintings and drawings, to clocks and watches, to furniture and ceramics. Members frequently specialize in more than one area, and many are certified experts in more than one area. Our members provide appraisals for purposes of insurance, estate tax, charitable donation, equitable distribution, liquidation, purchase, and sale..
*from the Appraisers Association of America website. For more info click here.
When working with an appraiser, keep in mind there is a difference between an appraisal and an authentication. When you hire an appraiser for an opinion on an authentication, you are asking the appraiser for his thoughts on who created the piece. After the creator of the piece is confirmed, an appraisal value is made with the assumption that the piece is real.
Depending on why you need an appraisal—an insurance claim versus selling a piece, for example—you need a different valuation for each scenario.
Most people use four main types of appraisals:
Fair market value (FMV) is the price that the piece would sell between a buyer and seller on the open market. The FMV is generally what is used for charitable donation values and inheritance tax.
Replacement value is the cost it would require to replace the item with a similar work of equitable condition purchased in an appropriate market place in a limited amount of time. This value is the highest value of an artwork and is used for insurance coverage.
Market Value is what a buyer is willing to pay to a seller, with no obligation to transact, in the competitive and open market.
Liquidation value is the value of the piece if forced to sell in limited conditions and possibly time constraints.
When you receive an appraisal document, make sure you keep this in your records. This is the number insurance companies and estate planners will use to file a claim or set up your art estate. It can also function as a dated proof of ownership, in addition to your bill of sale.
