APPRAISAL SERVICES
MRAA can appraise single items as well as large collections or entire estates, and conducts on-site evaluations if so required by the client. MRAA appraisal fees are based on an hourly rate and are not based on the ultimate value of the appraisal. This means that we have no financial interest or stake in the value of the artwork at the time we conduct the appraisal. The appraisals are strictly confidential, and professionalism and discretion are consistently observed. MRAA appraisals are based on the comparable market approach. Clients are provided with a report that includes a comprehensive inventory of the property appraised, images and descriptions of each item. MRAA appraisal’s methodology conform to the Uniform Standards of Professional Appraisal Practice (USPAP), and all the professional guidelines are rigorously applied and followed. A Final MRAA appraisal report is a formal, dated, legally valid document that is accepted by the Internal Revenue Service as well as banks and insurance companies internationally.
What is an appraisal?
An appraisal is a confidential, formal written report of inventory, condition and value of an artwork or collection of art works as of a specific date. An appraisal report is generally prepared as an official document or for personal use. A professional, independent appraisal is one that is completed by a third party with no current financial interest in the items being appraised and with thorough and longstanding expertise in the fields being appraised. A final MRAA report is formal, dated, legally valid document that is accepted by banks, insurance companies and the IRS.
When is an appraisal necessary?
There are many varying circumstances in which an appraisal is highly advisable. Common situations in which art owners will benefit from an
appraisal include:
Purchase and update of insurance
Acquisition and deaccession
Loan of artwork for an exhibition
Art as collateral for financing
Condition reports for transport
Charitable donation
Damage to or loss of artworks
Division of assets in the event of divorce or inheritance
Liquidation and bankruptcy
Making a gift or providing for inheritance of art in a will
Legal support and expert testimony
CLIENT SERVICE AND SUPPORT
Insurance and Banks
Banks and insurers require that appraisals be given by independent third parties. We recognize that art collections present unique risk management issues in the insurance industry, and an expert, up-to-date appraisal can significantly minimize such risk. MRAA conducts the necessary appraisal and produces a confidential written report that is dated, restricted to use by the owner, bank and/or insurance company only, and tailored to the needs of the client. Our clients generally need an appraisal in one of three situations: (a) to establish value in a sale of purchase transaction, or (b) to provide to a bank or insurance company as a requirement for extending a loan or providing insurance coverage.
MRAA works closely with corporate collectors to provide efficient, comprehensive appraisal services that are designed around the special circumstances of the institutional client, and with sensitivity to corporate parameters. MRAA works in tandem with in-house curators and administrators and are able to appraise extensive collections housed in various locations throughout the world, a valuable plus for multinational clients. We are aware that for many of our corporate clients, time is of the essence, and we strive to produce a final report that meets the client’s scheduling needs.
Estate Tax
A large portion of appraisal work is for estate tax purposes. MRAA is current on all IRS requirements for appraisers performing appraisals for estate tax needs. As with insurance appraisals, MRAA produces a comprehensive, confidential written report that tailored to the needs of the estate, is compatible with the requirements of the IRS and restricted for use by the client and the client’s attorneys.