Guide No. 1 – Rating and value of an artwork

  •  What is the price of a painting? What determines the value of an artist?

Rating is the pricing for a transaction. The value of an artist is most often defined in relation to the auction results, but each piece is unique. This is why, it is necessary to call upon an expert who has the authority to determine the value of a painting, sculpture and print by putting it in the context of in the general artist’s work . However, it should be noted, that the value determined by the auction results do not do everything. Some collectors are willing to buy certain art objects at a higher price, if the work that has never been shown at auction. Thus the collector will benefit from the fact of being the first to possess the work.

  • What is the value of an artwork ?

The value of an art object depends on many historical, aesthetic, quantitative and qualitative criteria. These criteria must be certified by various acknowledged authorities. These are mostly artists-authors of their works, their rights holders, legal experts, private experts, authors of catalogs, expert committees, curators of French and  foreign museums, more or less distant relatives of the artist, etc…The financial value fluctuates depending, among other things, on the reliability of the certificate that accompanies the item.

  • What is a replacement value?

The term “replacement cost value” in used in case of art insurance. This is the monetary value for the replacement of an artwork.

  • What is an agreed value?

It is the value determined and accepted by the parties, also known as a contractual value. This value is used for example to ensure an artwork. The tax authorities use it willingly. It may be different from the rating.

  • What is a fair value?

It is  is a rational and unbiased estimate of the potential market price of a good, service, or asset.

  • What is a certificate of authenticity?

A certificate of authenticity is the document required as a proof of an artwork’s genuineness.

Small glossary of an art object’s value

Art valuation: financial value of a work of art.

Estimation / Rating: consists of an order of magnitude or a potential value of transaction.

Attributed to: means that the work was created during the production period of the mentioned artist and presumptions refer to him/her as the possible author likely or possible, but with no guarantee

Entourage of: the painting is the work of a contemporary artist who was influenced by the work of the mentioned painter

Workshop of: out of the workshop of the artist but produced by students under his direction

In the style of: the work has not been created during this period.

Follower: the work is created during the period of fifty years after the death of the artist who influenced the author.

Reserve price: a minimum acceptable price that is established by the seller prior to the auction.

Workshop price: the price proposed by the artist in the workshop.

Gallery price: the price which includes taxes and if offered by the gallery, in theory related to the rating, but sometimes with a little adjustment…

Replacement value: the actual cost to replace an item (buy a similar item) at its pre-loss condition. This is the price charged for an equivalent item in similar conditions on the market: in auctions, antique shops, flea markets … (which  is commonly known as “market value”).

Agreed value: the value determined and agreed to by the parties, also known as a contractual value. This value is used for example to ensure an artwork. The tax authorities use it willingly. It may be different from the rating.

Fair value: a rational and unbiased estimate of the potential market price of a good, service, or asset

Appraisal: An estimate of an item’s worth, usually performed by an expert in that particular field

 

 

COMMENTS

There are no comments yet. Be the first to leave one!

    LEAVE A REPLY