What is the difference between an appraisal and a valuation?
Appraisals are formal documents prepared by qualified appraisers and completed in a manner that is independent, impartial and objective. Different uses of appraisals may require specific criteria around intended use, objective and purpose.
- An art collector may be considering donating a major work to a recognized museum and would like a charitable tax receipt in exchange
- Equitable distribution of assets during a divorce
- Parent’s estate needs to be divided equally in value among siblings
Valuations provide an estimation of worth and are often a casual assessment of the market value. This may simply be a verbal estimate when circumstances only require an informal appraisal to answer a question.
Research on provenance, artists and authentication is important in fine art. Having the history of the artwork traced and documented will enhance salability and value.