African American Art:Basics to Appraising an Asset & Commodity The increase in value within the last twenty years from a few hundred to tens of thousands of dollars has quickly made African American art a commodity and asset. Chubb & Son's Antique Road Show has successfully increased the world's consciousness about uncovering hidden treasures. Some of these possessions are family heirlooms, something picked up at a flea market, or objects discovered under Aunt Thelma's bed. The story behind these collectibles and fine art can loosely be coined "objectographies." Objectographies make good conversation at gallery openings but specifically inspire collectors to go beyond sentiment or pleasure, and take a more serious look at knowing exactly what they have and its value. In particular, collectors of African American art have been witnessing the rise of American galleries specializing in, or expanding their inventories to include, beautiful and compelling work by American artists of African descent. Within the last twenty years, auction houses like Sotheby's and Christies include more 19th and 20th century works by African American artists in their sales than they have prior to 1980. Among those included are works by Henry Ossawa Tanner, Edmonia Lewis, Robert Duncanson, Romare Bearden, Jacob Lawrence, and Joshua Johnston, to name a few. The increase in value within the last twenty years from a few hundred to tens of thousands of dollars has quickly made African American art a commodity and asset. Paralleling this increase in commerce and acquisition are traveling mid-career artist retrospectives and private African American Art collections; including those of Paul Jones, John and Vivian Hewitt, Dr. Walter Evans, Wes and Mary Cochran, and David C. Driskell. Historic exhibitions within the last fifteen years have contextualized American artists of African descent beyond their own 260-year visual history within the parameters of American art history at large. As a result of this activity, there is no doubt among collectors, curators, dealers and urban anthropologists that the cultural materialism of African American art is valuable. However, more collectors are realizing that the responsibility for caring for their visual treasures is beyond framing, restoration, insurance and protection from theft. Hence, the fine art appraisal has become an essential document in a collectors archive to identify value as an asset for future sale, charitable donation, estate tax, gift tax, equitable distribution in divorce or liquidation, or simply to know what your collection is worth. The four most frequently asked questions by neophyte and experienced collectors are: What is an appraisal? Why do I need an appraisal? What do appraisers do? How much does an appraisal cost? Essentially an appraisal is an informed assessment of a work of arts value based on specific and comparable research about the history and currency of the work in question. This document also assumes legal significance and has potential to be defended in a court of law. Therefore, it is important for the collector to be clear about his intention and purpose for the appraisal. For example, the value used for an insurance appraisal will be higher than an inventory appraisal since the insurance appraisal is factoring in the replacement cost for a comparable work of art, in the event it gets damaged or stolen. Conversely, the inventory appraisal does not have to add tax, a projected percentage of appreciation, framing, shipping or other related expenses. if a collector is interested in selling the work through a dealer, he would not use the value for the insurance appraisal, but use the fair market value from an inventory appraisal. APPRAISAL TERMINOLOGY Replacement Value: the amount it would cost to replace an item with one of similar and like quality purchased in the most appropriate marketplace within a limited amount of time. This value is almost exclusively applied to insurance policies because it is generally the highest valuation figure for personal property. Liquidation Value: The price realized in a sale situation under forced or limiting conditions and under time constraints. This action may be initiated by the owner or the crediting institution. It is implicit in this definition that the liquidation value will generally be lower than other types of valuation. Marketable Cash Value: The value realized, net of expenses, 41, a willing seller disposing of property in a competitive and open market to a willing buyer, both being reasonably knowledgeable of all relevant facts and neither being under constraint to buy or sell. It is implicit in this definition that the sale takes place within an agreed time period, with a specified method of payment, in the best available marketplace, with such sufficient time allowed to advertise properly. This value is most appropriately applied to equitable distribution situations, when tangible property maybe exchanged for cash or other financial products. 0ne of the most frequent reasons an appraisal is needed is for insurance purposes. Most people do not know the market value for their collections, or they become concerned only when "the horse is out of the barn" - when fire, theft, or other catastrophe has robbed them of their valuables. To put yourself to the test, write out a list of the contents of a major room in your home. Make a note of every item that would be lost in the event of a fire or if burglars made a clean sweep. When that is done, check and see how much you missed. Unless you have a photographic memory, you will be surprised that in the event of a disaster, anything you overlooked would most likely be lost or gone forever. In essence, the police will never locate what you cannot describe and the insurance company will never replace items that you don't remember you owned. if you do have a photographic memory, ask yourself if you can accurately ascribe current replacement values to all those items on your list. Most collectors, no matter how astute, can not. This is the job of the appraiser. Appraisers are professional researchers who stay abreast of the market through seminars, conferences, attending shows, browsing galleries, auction houses or reading sultry specialty publications. The appraiser analyzes auction records, inflation, market conditions, trends, retail and wholesale prices, among other factors. They have relationships with dealers, collectors, curators, auction houses, publishers, conservators, insurance companies and any resource that helps them to provide accurate assessments of your collection. It is important to note that appraisers do not authenticate art. They verify and describe what they see through physical examination and substantiate the appropriate market value based on comparable prices, the work itself and the sales history of the artist. For example, Romare Bearden's abstract works from the mid-1950s do not command the same prices as his collage or watercolors, of which he is better known. Nor do the mixed media collage and watercolors command the same prices as a work that is entirely collage. Yes, the Bearden in your collection is valuable, but depending on the medium, whether it is a one of a kind (oil, pastel, collage, watercolor, drawing,) or a multiple original (etching, engraving, silkscreen, lithograph), its market value, is based on more factors than just the artist's name. When an appraiser comes to your home, you can expect them to inspect each work that you have requested. They will ask you questions about the work, how you acquired it, whether you have had it cleaned, repaired, or relined. Measurement photographs and notes will be taken and then the appraiser will begin the research. Once the research and analysis is complete, the appraiser submits at least two copies of a completed report within a mutually agreed upon time. The following are some of the elements that should be included in an appraisal: To prepare for an appraisal well There are additional factors of note that impact the perception of value, market activity and the process in which an appraiser determines value: The third market is the academic market comprised of art teachers and college art professors who sell their work in regional galleries, group shows and fairs, and are not actively visible in the collective activity among dealers, curators, collectors, critics and auction houses. These distinctions are significant when appraising a collection of African American art, where various pieces are supported by diverse markets in which work by American artists of African descent is sold. The fee structure for appraisers is comparable to that of an attorney. Usually there is an hourly rate for the inspection, research and analysis. You are expected to pay the hourly rate, plus related expenses, such as film processing, travel and whatever you and your appraiser negotiate as it pertains to the assignment. Usually a letter of intent or agreement is sent to you after your initial conversation in which an estimate of the time for the inspection is stated with the hourly rate. However, this estimate is a "guesstimate" because sometimes the research can take more or less time. A deposit is due prior to inspection or upon arrival as per the terms of the agreement. The balance of the bill is submitted and paid once the completed report is delivered to the client. Generally, each individual artist can take an average of an hour and a half or more if they are lesser known, or less if they are better known. Rates vary from $125 to $400 dollars an hour. Each appraiser brings his own expertise and experience. Some appraisers are members of professional appraisers associations and others choose not to be, but adhere to the Uniform Standards of Professional Appraisal Practice (USPAP) and participate in all of the activities of the constituency. it is not required to be a member of an appraising organization in order to write professional appraisals. The benefit of membership is more for the Appraiser in terms of legal support as needed, professional promotion and collaboration with other members. Otherwise all educational conferences are open to the public. In essence, as long as the appraiser has expertise and experience in the field, has passed the USPAP exam, and adheres to its standards, that appraiser is qualified. Occasionally you will find that an art dealer is also an appraiser. if they sold some of the pieces in your collection to you and you hire them to do your appraisal, make sure that their role as your dealer is disclosed in the document and indicates that there was no proprietary interest in the appraisal value. This is important to avoid any questions of ethical conflicts of interest. Appraisers Who Specialize in African American Art., Halima Taba is the author of "Collecting African American Art" and the founder of Halima Ink, a New York-based art consulting service company.
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