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How to determine the value of artwork

Art valuation is a specific subset of financial valuation. It is the process of estimating the market value of artwork. Most artwork undergoes valuation prior to a divorce or complex division of property. Artwork valuation is done using resources from private collectors, auction houses, corporate collectors, gallery owners, curators and consultants.

Aside from preparing for divorce, art valuation is also done for the following:

-- Investing

-- Collateral

-- Charitable contributions

-- Estate valuations

-- Tax planning

-- Insurance

Market demand is one of the most important parts of art valuation. This occurs when comparable pieces are used to figure out the demand level the piece would receive on the market. Liquidity is also vital in valuing artwork as it shows that the piece has high demand and can sell without anything impeding its progress.

When studying the direction of the the market, valuation trends are used from the top auction houses around the globe. Valuations acquired from the top auction houses around the world are taken with more value than those from less established venues.

When putting together a valuation for artwork, there are additional factors that must be taken into account. Those additional factors include why the artist is selling the piece and why the buyer is buying the piece. It's quite possible that neither of these will be related to the other.

When valuing artwork of unknown or new artists, three aspects are taken into consideration. These three aspects include the scale (size and level of the art's detail), intensity (effort) and medium (the quality of the material used).

Research data can also play a part in artwork valuation. This data is typically derived from the largest art auction houses in the world. The data includes sales volume, yearly lot transactions, price levels, bought-in statistics and pre-auction estimates.

The friendly and experienced attorneys at our firm can answer all of your questions regarding art valuation and property division in Fort Lauderdale, Florida.

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