| The value of a work of art is a peculiar beast, a | | | | purchase each time the work is bought by a different |
| schizophrenic chameleon. It is witnessed in a myriad of | | | | patron. Both of these require the use of a good |
| perplexing personas, corporeal and otherwise. | | | | attorney that specializes in art sales contracts. |
| Non-the-less, affixing a monetary claim to an art work | | | | Since I mentioned insurance before, let's look at value |
| is a necessary evil in a pragmatic sense and its worth | | | | from under that hat. Dollar amounts may reflect |
| is influenced remarkably by the hat you are wearing. | | | | differently from the insurer and the insured. What you |
| To understand this matter more, one must realize that | | | | think a piece is worth may need to be documented |
| these values are transient within societies and cultures. | | | | with a certified appraiser's estimate and even |
| Consequently, they must be adjusted over time and in | | | | appraisers amounts will vary. Another method is to |
| accordance with one's rules and role as an evaluator | | | | verify a "track record" of sales amounts. An owner of |
| or art patron. | | | | an art purchase will need to show a receipt. Since |
| So, you say: "What in da tar nation eez you talkin' 'bout | | | | values of art vary over the years, one should get |
| dude?" | | | | updated estimates that reflect inflation. On the other |
| Let me try to explain. The title of this discussion, | | | | hand, an insurer of a gallery may just take a gallery |
| "determining the value of art", leaves an open ended | | | | owner's document on total amounts of consignment |
| definition of "value". As a former gallery owner, | | | | contracts. |
| practicing artist, and as a professional art educator | | | | Suppose you own art and want to donate it to a |
| responsible for e-value-ating art daily, I know that there | | | | non-profit organization. Now the federal government |
| are two distinct classifications of value; tangible, or | | | | has stepped in. If you want to claim an amount for tax |
| corporeal, something to which a price tag can be | | | | purposes you have to verify a claim with a receipt. |
| attached. The other, obviously, being ethereal that | | | | Unless you are the artist, then it's a whole other ball |
| cannot carry a monetary fixation, but non-the-less, has | | | | game. Uncle Sam now says you can only claim the |
| definite "value" from a variety of standpoints. Within | | | | actual value of the tangible materials that make up the |
| both of these there are also distinctions. | | | | piece. Your time and other expenses are null and void. |
| To initiate a dialogue on "value" in reference for money, | | | | So, your piece basically becomes worthless, which |
| let's assume you're an artist and want to sell a painting. | | | | brings us to the next three berets of value I can relate |
| How do you affix a sales price? This should be helpful | | | | to under the voice of experience, 1) estate of the |
| to those wanting to know how initial prices of a | | | | deceased, 2) bankruptcy , and 3) loan value. |
| painting are determined. | | | | In the event of settling an estate, unless one has |
| To start with, you have to consider legitimate | | | | receipts to verify worth, you can expect to get, or list, |
| expenses: outlay of materials, approximate rate of | | | | garage sale prices (GSP). Here you also have the |
| utilities while producing the work, expenses for | | | | option of using a professional appraiser to assign a |
| research and photography, travel, fees for models, | | | | value. In the unfortunate case of a bankruptcy, you |
| studio space rental, copyright use, framing, storage, etc. | | | | can expect to keep art listed as "wall coverings" also |
| These are all things you can document with a paper | | | | valued at "garage sale prices", to sell it at the GSP |
| trail and receipts. Next, you have to consider a wage | | | | level, or at minimum, much lower values than your |
| for your time in production. How much is your time | | | | track record of sales. Banks have their own capricious |
| worth and dependent on your skill? Should you | | | | policies in terms of the value of art as collateral. Some |
| reasonably expect to get more if you have a master's | | | | won't accept it, some require a certified appraised |
| degree in painting, or are a beginner? (It may be | | | | estimate, which will be in a range from "X" dollars to |
| interesting to note that most artists in the U.S. do not | | | | "X" dollars and as you can rightly guess, the lower |
| even make minimum wage on the sales of their work.) | | | | amount will be used. Furthermore, you can expect the |
| Which brings up another issue, how do you recoup | | | | bank to allow no more than 75% of that number as |
| your expenses for classes and education or training in | | | | collateral value. Some will have their own value of |
| art? If you have limited edition signed and numbered | | | | several art pieces (note the plural here) by stating that |
| reproductions of a painting made, how much should | | | | they will accept the art for a $500 loan, this is, in effect, |
| the price of the painting be raised? | | | | actually a signature loan and the art has no collateral |
| These are just some considerations. Some artists | | | | value. |
| simplify this by using a formula, like $6 per square inch | | | | Take the stance of an investor now. Several years |
| plus the cost of framing. | | | | ago "Money" magazine published their best long term |
| So, you have a price in mind and want to be | | | | investments for 15 and 30 year periods. Ranked at |
| represented by a gallery. You go to a few galleries | | | | numbers 2 and 3 over these periods was original, |
| and find out their commissions vary from 30 to 50 | | | | contemporary art. If you are looking at long term |
| percent of the sales price. After evaluating gallery | | | | strategies, then a serious glance at art values is |
| requirements and expectations you decide that in | | | | important. As an investor, unless you purchase art at |
| order to get the price you had in mind, for example | | | | auction, you can generally negotiate a purchase price |
| $850, now must become $1,140 with a 40% gallery | | | | with a gallery or an artist. This demonstrates there can |
| take included. Other issues involved are not limited to | | | | be a difference between perceived and real value for |
| whether or not the gallery can expect to sell it at that | | | | a work. If you buy art just because you like it, it may |
| price in its market and the galleries' insurance liabilities | | | | not be a monetary investment. Prior to investing in art, |
| and limitations. | | | | you need to consider all of the topics mentioned |
| Here are some other questions regarding artist's | | | | above in deciding what to look for as "value" in buying |
| pricing. Suppose you have some paintings in galleries | | | | art. Two things here that also affect the value of art is |
| and try to liquidate some others yourself. From an | | | | the notoriety of artist in combination with market supply |
| ethical standpoint, can you sell a similar work for $850 | | | | and demand. |
| (knowing it would sell easier at that price), or should | | | | With all this said, the ultimate monetary value of any |
| you charge the same as the gallery, $1,140? Can a | | | | art work is only the highest amount at any given time |
| similar painting sell for more in a different location of | | | | that someone is willing to pay. |
| the country? Watercolors typically sell for less than oils | | | | Up to now we have taken a cursory look at art in |
| of comparable size, therefore, how do you adjust | | | | terms of tangible market values. Here are a few |
| prices? What do you charge in adjustment for a | | | | non-monetary assessments of art work worth: cultural |
| vignette of the same dimensions as a full composition | | | | significance, educational and instructional relevance, |
| piece? Additionally, suppose you have participated in | | | | historical documentation and study, therapeutic value |
| some juried exhibitions and some of your works have | | | | (which can also be seen as an investment), and |
| won awards. Do you now raise the prices of these, | | | | aesthetic attachment. Each one of these deserves |
| and if so, how much (I've known some who double the | | | | their own treatise at another time. |
| price.)? | | | | The "value of art" to each person is a rough diamond. |
| The artist also sees value in their art as a possible | | | | Increasing its worth will depend on the skill of the cutter |
| source of residual income. This comes in two forms. | | | | to weld a working philosophical construct of value with |
| One is through royalty payments with the paid use of | | | | practical applications to be employed as a tool to |
| their copyrighted and licensed materials. The second | | | | expose its many exquisite faces. Undoubtedly, |
| and more obscure to most, is through percentages of | | | | theoretical physicists will prove a string theory for the |
| repeated sales of the same art work. This is | | | | universe before there is any global "value of art" |
| accomplished in a contract purchase where the artist | | | | recognized throughout all societies and cultures. |
| or their estate is guaranteed a certain amount of the | | | | |