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At some point every collector faces the question of what a work on their wall is actually worth. Sometimes out of curiosity, more often for a concrete reason: an insurer wants figures, a work is to be sold, a collection has to be divided or bequeathed. As self-evident as the question sounds, the answer is anything but. A serious valuation follows clear rules, distinguishes between different types of value and is more than a quick online enquiry.
Anyone who approaches the subject soberly avoids expensive mistakes in both directions: works are neither sold below value, nor is insurance overpaid. This article explains what matters, without sales pressure and from the perspective of an adviser who does not buy or sell himself.
What distinguishes an appraisal from an assessment
In everyday language, “assessment”, “valuation” and “valuation report” are often used synonymously. Legally and practically they are three different things.
An assessment is a professional opinion, often verbal or informal, without documented research. It is suitable for a first orientation.
A valuation places a figure on a work’s market value on the basis of visible and researched criteria. It can be given verbally or recorded in a note.
A valuation report is the written, methodically traceable and signed valuation. It contains a description of the work, provenance research, condition report, market analysis, a clearly named concept of value and a valuation date. It is the form that banks, insurers and tax authorities accept.
Anyone who has to insure a collection, settle an inheritance or file a tax return needs the valuation report. Anyone who simply wants to know whether a work is worth three or five figures can manage with a valuation. The distinction seems pedantic, but it saves money and discussion later.
The four types of value, and when you need which
The value of a work is never a single figure. Depending on the purpose of a valuation, a different concept of value applies. Four are relevant in practice:
| Type of value | Needed for | Character |
|---|---|---|
| Market value (fair market value) | Sale, gift, division of an estate | The price achievable today on the open market between a willing buyer and seller |
| Insurance value (replacement value) | Insurance | The amount needed to acquire a comparable work anew, incl. premium, transport, insurance |
| Tax value | Wealth, inheritance and gift tax | Officially recognised value, with rules that differ by canton |
| Collector’s value | Special cases (signed provenances, collection history) | What a particular collector is prepared to pay above market value |
The most common mistake in practice: insurers ask for the “value” of a work, the collector names the last auction price, and the insurer then calculates premiums on the basis of a value that is too low or too high. In the event of a claim, the insurance then either pays too little or has cost too much in premiums in the past.
In a serious appraisal it is therefore always clearly stated which type of value was determined. That belongs in the report, not in the phone call afterwards.
The three pillars of every serious valuation
Regardless of which type of value is determined, every robust valuation rests on three pillars.
Provenance – origin and ownership history. Where was the work acquired, who were the previous owners, where was it exhibited, are there catalogues or documents? A work with documented provenance is often valued considerably higher than the same work without evidence. For works that changed hands between 1933 and 1945, provenance is not only a value factor but an ethical and legal duty.
Condition – physical preservation. Original varnish or already cleaned? Restorations visible or invisible? Cracks, overpainting, retouching? A seemingly minor restoration can shift the market value by twenty to forty percent. Anyone who has a work “tidied up” before a valuation frequently harms themselves.
Market – comparable values. What are collectors currently paying for comparable works by the same artist, from the same period, of comparable size and technique? Auction results count here just as much as private sales, where documented. A serious valuation relies on at least three to five comparable works from the past two to three years.
These three pillars must appear explicitly in a valuation report. Anyone who receives a report containing only a figure and a stamp should ask questions.
On site, photo or online: what really works
Online valuation platforms offer the quick route: upload a photo, receive an answer within days. That works for a first orientation and for works with a broad comparison base on the market (for instance numbered prints by established artists).
What online cannot reliably deliver:
- Detailed condition assessment. Cracking, restorations, overpainting, changes in the varnish. Much of this is not, or only barely, recognisable in photos.
- Authenticity checks for works with uncertain attribution. Checking a signature, comparing technical details, researching provenance in depth – this frequently demands direct contact with the work.
- Special cases. Asian art, Old Masters, photography with historical context or conceptual contemporary works each follow their own valuation logic, which is hard to reproduce online.
For a valuation report that must stand up to insurers, banks or tax authorities, an inspection in person is necessary in most cases. For works outside Switzerland I work with established partners on site, so that the inspection takes place where the work is.
A hybrid form often works well: a first photo-based assessment, followed by an on-site inspection only if the values or the occasion justify it.
What an appraisal costs, and what you get in return
Fees for valuation reports vary widely, depending on effort, depth and the class of work. Three models are common in practice:
- Hourly rate for spot valuations or second opinions. The level depends on specialisation and the complexity of the mandate.
- Flat rate per work for medium-sized mandates. The level depends on the depth of research and the class of the work.
- Collection flat rate for larger holdings, with per-work costs falling as the number increases.
Travel costs are shown separately. For urgent mandates (for instance during an ongoing division of an estate), express appointments are common, usually with a moderate surcharge.
What a proper report contains in return:
- Detailed description of the work with dimensions, material, technique, dating
- Photo documentation
- Provenance research, as far as traceable
- Condition report
- Market analysis with comparable works
- Clearly named type of value with valuation date
- Reasoning behind the valuation
- Signature and proof of accreditation
If a provider offers a valuation report for considerably less than the range mentioned, it is worth asking what is being left out. Often the provenance research or the condition report is missing.
How to choose an appraiser who does not want to sell himself
Many players in the art market work with a dual interest: they value and sell at the same time. That is not disreputable per se, but it can lead to structural conflicts of interest. A low estimate can move the consignor to consign to the appraiser’s own auction; a high estimate binds a potential buyer.
Three questions help to vet an appraiser:
Do you sell works from your own stock? Anyone who sells works from their own gallery or auction alongside the valuation has a structural interest that can flow into the report.
Do you receive commissions from auction houses or galleries for referrals? Some appraisers recommend selling through particular houses and receive an introducer’s commission for it. This is not improper, but it should be disclosed.
Who pays your fee – me or the other side? In independent advice, only the client pays. A fee from a third party is a clear signal in whose interest the valuation is being prepared.
A reputable answer to these three questions must be possible clearly and without detours. Evasive answers are a warning sign.
Frequently asked questions
How long does a valuation report take? For a single work, usually three to seven working days after inspection. Medium-sized collections of ten to fifty items take two to six weeks. Express appointments are possible for urgent mandates.
Will Swiss tax authorities recognise valuation reports? Yes, if the formal requirements are met. The cantonal tax administrations accept valuation reports from accredited advisers. Where a canton has special requirements, I adapt the structure and form of the report accordingly.
Can I have a valuation without an inspection of the original? For a first assessment yes, with photos and details of the work. For a valuation report that must stand up to banks, insurers or tax authorities, an inspection in person is necessary in most cases.
How current does a valuation report have to be? That depends on the purpose. Insurance reports should be updated every three to five years. Sale reports as close as possible to the planned sale date. Tax reports as at the relevant date of the tax event. On request I take care of regular value updates.
What is the difference between market value and insurance value? The market value is what you would achieve on the market today. The insurance value is what it would cost to acquire a comparable work anew, i.e. including premium, transport and insurance. The insurance value typically lies twenty to forty percent above the market value.
Can you also value unsigned works? Yes, with limitations. With unsigned works, the question of attribution is often in the foreground: is the work really by the assumed hand? Here I work with a network of recognised specialists for cross-checking. The valuation then also covers the range between a secure attribution and an attribution to the workshop or circle of the artist.
If you need an appraisal
If you would like a picture, a painting, a collection or a single work you suspect may be valuable valued seriously, the first step is a confidential conversation. In the initial conversation we clarify which type of value you really need, whether an on-site inspection is necessary, and the time and financial scope of the mandate. The conversation is free of charge and without obligation.
More on the service on the page Valuations and appraisal reports. Direct contact here.
