PATRICIA SHIPPEE FINE ART
Fine Art Appraisal and Consulting Services
A formal appraisal is a specific document that meets all the requirements of the most current Uniform Standards of Appraisal Practice (USPAP). Research on the artwork and each artist's current market is undertaken and data on comparable recent sales is documented in your report, along with full descriptions of your artwork, photographs, and finally a definitive valuation summary.
Procedure & Content of Appraisals
We arrange an appointment and personally examine the works of art at the client location. An appraisal assignment includes an on-site inspection of each object, digital photographs of each work, detailed description of each work, research of artists' biographies, career and sales valuation analysis in current and appropriate markets, and preparation of a formal appraisal report of which you receive two bound copies.
Clients should assemble bills of sale, evidence of origin and provenance where possible. An appraisal report is an official document that sets out the value of your personal property. It is prepared in compliance with the Uniform Standards of Professional Appraisal Practice (USPAP) as set by the
Appraisal Foundation and authorized by Congress. We follow the Code of Ethics of the
American Society of Appraisers, as well as the Internal Revenue Service guidelines and regulations.
If there are items we are not qualified to appraise, we have a network of respected specialists that we consult with.
Your appraisal report will clearly describe your property, the methods used to estimate values, and the kind of value. These are some of the components of a correctly prepared appraisal:
Name and address of owner
Purpose of the appraisal, i.e., donation, estate tax, insurance, etc.
Type of value, approach to value, and appropriate market
Inspection and effective dates of the appraisal
How/when art was acquired (especially for IRS appraisals)
Description of the art objects, condition and provenance
Biography of the artists; exhibition and publications history
Market research, analysis and narrative
Qualifications of the appraiser
Statement of disinterest of the appraiser; fee not contingent on appraised value
Statement that the appraiser has not been disqualified by the IRS (for IRS appraisals)
Statement of Value
Statement of assumptions and limiting conditions
Certification and signature of the appraiser (with tax identification for IRS appraisals)
Types of Appraisals
Insurance Appraisals protect the value of your fine art from loss due to fire, theft, or damage. Insurance appraisals provide the current Replacement Value of your fine art objects. Most insurance companies require a Fine Arts Appraisal for works of art valued in excess of $1,000. It is suggested that a professional appraisal be conducted every three to five years to determine current values for insurance purposes.
Insurance Settlement Appraisals provide current Replacement Value or Replacement Depreciated Value (determined by insurance contract) to ascertain loss in value, possible restoration or replacement if damage occurs.
Donation and Gift Appraisals are used to determine the Fair Market Value for Federal tax deductions in conformance with Internal Revenue Service requirements (see IRS publication #526).
Estate Appraisals are required when an artist or collector dies and provides Fair Market Value for estate tax liability, in conformace with IRS guidelines and regulations.
Equitable Distribution Appraisals are used for estate planning and/or property distribution among heirs. The value can be Fair Market Value or Marketable Cash Value, determined by the client and/or attorney.
Sale or Advisory Appraisals provide analysis and conclusion of Marketable Cash Value (net liquidation value).
Types of Values
Fair Market Value is defined as the price at which a property would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell and both having reasonable knowledge of relevant facts. (Treasury Regulation Section 20.2031-1[b])
Replacement Value is the price in terms of cash or other precisely revealed terms that would be required to replace a property with another of similar age, quality, origin, appearance and condition within a reasonable length of time in an appropriate and relevant market.
Marketable Cash Value represents the anticipated net proceeds that would be yielded from the orderly sale of a property once all of the costs of sale were subtracted.
Art Appraisal Standards & Ethics
As an Accredited Senior Appraiser of the
American Society of Appraisers, clients have the assurance of the highest standards of workmanship and ethical conduct. The Uniform Standards of Professional Appraisal Practice (USPAP), promulgated by the
Appraisal Foundation of Washington, D.C., is revised and published annually and governs appraisal reporting. The Code of Ethics of the
American Society of Appraisers and IRS guidelines and regulations are conformed to.
PMSFA, LLC, is totally committed to safeguarding the confidential information of our clients. We hold all of our client's personal information provided to our appraisal service company in the strictest confidence and in accordance with the USPAP and ASA ethics standards of confidentiality. These records include information that we collect from clients in connection with any of the personal property appraisal services provided.
PMSFA, LLC, does not purchase or sell items appraised. However, additional services offered include such art consultation services as:
On-site visits to assist in advice on appraisal and/or disposition
Collection management and inventory
Advice on the acquisition or sale of fine art
Service to locate works of art
Assistance with charitable donation recommendations
References for conservation, restoration, framing, transportation and storage
References to appraisers of antiques, textiles, jewelry, books, etc.
Assistance in obtaining authentication via experts and scholars who specialize in the work of the artist or period that the work comes from
