Do you own a painting or artwork collection that you inherited from a family member or purchased some years ago?

If yes, I am sure you have always wondered how much the artwork might be worth today. More so if you are planning to sell it. 

Now, for starters, let me tell you that determining an artwork’s value isn’t as simple as looking at its age or checking whether it has a signature for authenticity.

In fact, art appraisal is more complicated than valuing an HVAC company, gift store, IT firm, and other product and service based businesses. That’s because unlike these businesses, an artwork doesn’t have a comparable sales date or a go-to valuation method. 

So your appraiser has to take into account the artist, artwork’s authenticity, condition, ownership history, and current market demand to calculate a valuation number. 

In this blog, I have explained exactly how you can estimate the value of your artwork and when you should hire a professional appraiser.

Let’s get started.

Key takeaways

• An artwork’s value depends on its artist, authenticity, condition, provenance, and market demand.
• Recent sales of comparable artworks can help you estimate its value.
• A signature or an old purchase receipt doesn’t establish an artwork’s worth.
• Free online evaluations can give you a rough idea, but they don’t substitute a formal appraisal.
• The right appraisal method depends on whether you’re selling, insuring, donating, or valuing your artwork for any other purpose.

How do I get a painting appraised?

To begin with, there isn’t a standardized formula to appraise art collection. It all depends on the art piece, who painted it, its age, and what condition it is in right now. 

In fact, different paintings by the same artist can also have very different values because of differences in size, subject, condition, authenticity, and buyer demand.

Here are a few important values that help you determine the value of an art piece: 

Pro tip: Before you begin art appraisal for an individual art piece or collection, be clear about why you want to know the valuation. The purpose of valuation plays an important role in determining the worth of your art piece. 

How to do art appraisal and find the value of a painting or artwork?

If you are curious how to value artwork yourself, there are three steps you can follow before hiring a professional business valuation expert. This includes: 

Step #1. Identify the artist and artwork

The first thing you should do is analyze the artwork in detail. Look for the artist’s signature, title, date, medium, and dimensions. Also, take pictures of the front and back of the artwork, including any labels, stamps, inscriptions, or gallery stickers. These details will help you identify the art and find relevant sales records.

Note: A signature alone doesn’t prove authenticity. A painting can be signed but incorrectly attributed to an artist. At the same time, even an unsigned piece can also have value.

Step #2. Research comparable sales 

Having identified the artwork, you should now look for similar art pieces that might have sold. You can look at auction records from platforms like Heritage Auctions and other established auction houses. Also, you can look at art price databases and consult with specialists.

Here are a few things I suggest you should pay attention to when looking at the value of similar artwork:

1. The artist and whether or not the artist attribution is verified.
2. The artwork’s medium, size, subject, and period.
3. The condition of the art and its ownership history.
4. The final sale price and date of sale.

For instance, let’s say you own an oil painting by a certain artist. In this case, a recently sold oil painting by the same artist can be a more useful comparison than an acrylic painting by that artist.

Pro tip: Gallery listings or online asking prices are not the most reliable sources for art appraisal. These sources show what sellers hope to sell their art for and not necessarily what buyers are willing to pay.

Step #3. Check the artwork’s condition and ownership history

When you appraise art collection, the collection’s condition as of now and its ownership history also determine what its value is. This is true notwithstanding old or new a piece of art is. 

Here, provenance is an important benchmark. It is a documented history of an artwork’s ownership and it includes old receipts, gallery records, exhibition catalogs, and previous appraisals. All of these help establish the history of artwork. 

Also, valuators and buyers look for visible damage, fading, cracks, or signs of restoration to determine the value. 

Note: You should never attempt to repair an artwork yourself, as improper treatment can damage the artwork. Also, an original artwork with minor damages can be more valuable than a restored one. 

Pro tip: Do look at the back of a painting. Gallery labels, inventory numbers, and old exhibition stickers can provide useful clues about its history.

Bonus: Do get a professional art appraisal when necessary

As you can see, it is possible to do fine art appraisal yourself and get a rough estimate of its value. You can do this by looking at the artist’s similar work, researching comparable artwork that sold recently, and assessing the artwork’s condition and ownership history.

But these might not be enough when you need a documented valuation for insurance, estate settlement, charitable donations, or any other formal requirement. 

In these cases, it is best to hire a qualified appraiser. They can use the right rule of thumb valuation methods to examine the artwork, research comparable sales, assess available documents, and derive an appropriate valuation. 

For instance, if you’re donating artwork and claiming a charitable deduction above the applicable IRS threshold, you will need a qualified appraisal that meets specific tax requirements. In this case, a business appraiser can help carry out art appraisal as per IRS guidance on noncash charitable contributions. 

What factors affect art appraisal and final valuation?

Have you ever wondered why different artworks that look very similar have completely different values?

Well, it happens mainly because of six factors that influence art valuation. This includes:

None of these factors determines an artwork value on its own. For instance, an old painting isn’t valuable just because it has been around for a century. Its artist, authenticity, condition, and demand among buyers all affect the final value.

How much does an art appraisal cost?

A professional art appraisal can cost anywhere between $250 and $300 for a single artwork. But for detailed appraisal that requires extensive research, the fees can range from a few hundred dollars to $1,000 or more.

The final cost of a fine art appraisal depends on the appraiser’s fee structure, the number of artworks, the research involved, and the complexity of the assignment. 

Also, some appraisers charge an hourly rate, usually about $150-$500 per hour, while others offer a flat fee for a defined scope of work.

Pro tip: Before you hire an art appraiser, ask them what their fee includes, what type of report they will give you, and whether they will charge some extra fees. 

Bonus: Here’s how to choose the right art appraiser

1. Check their expertise: Look for experience with your artwork’s artist, period, medium, or category.
2. Review their qualifications: Professional organizations such as the Appraisers Association of America and the American Society of Appraisers can help you research qualified specialists.
3. Explain your purpose: Tell the appraiser whether you need a valuation for insurance, a sale, estate planning, or a charitable donation.
4. Ask about fees and deliverables: Confirm the scope of work and whether you’ll receive a written report.
5. Know if they are independent: Ask the appraiser how they handle potential conflicts of interest and whether their compensation depends on the artwork’s appraised value.

FAQs about art appraisal

How do I know if a painting is valuable?

You can start by identifying the artist, checking the signature and available documentation, reviewing the artwork’s condition, and researching comparable sales. I

How do I get a painting appraised?

I suggest you photograph the painting, record its dimensions and medium, gather any ownership documents, and contact an appraiser who specializes in similar artwork. Tell your appraiser why you need the appraisal so they can use the most appropriate method.

Can I appraise artwork online for free?

Yes, some auction houses and online platforms offer free preliminary evaluations based on photographs and information you provide. However, these estimates are mostly limited and they don’t replace a formal written appraisal.

Does old artwork always have value?

No. Age alone doesn’t determine value. The artist, authenticity, condition, provenance, rarity, and current market demand all influence what buyers might be willing to pay.

Conclusion

As you can see, carrying out art appraisal and finding the value of your artwork takes more than checking its signature or comparing it with a few online listings.

You need to identify the artwork, research comparable sales, consider its condition and history, and determine which type of valuation you actually need.

If you’re making an important financial, insurance, estate, or tax decision, I strongly suggest you work with a qualified art appraiser as they can help you obtain a reliable valuation.

Got more questions or want to get your artwork evaluated?

You can get in touch with us!

At Arrowfish Consulting, we are seasoned business valuation experts with over a century of combined experience. And we can help you find the most reliable real-market value of your art piece or collection. 

Jeremiah Grant

Jeremiah Grant is the Managing Partner of Arrowfish Consulting. In addition to acting as a primary liaison for many of the firm’s engagements, He primarily focuses on business valuation and economic damages expert witness assignments, in addition to forensic accounting and insurance claims analysis.

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