The Cost of an Appraisal: What You’re Really Paying For
As an accredited appraiser with the International Society of Appraisers (ISA), one of the most common questions I encounter is: “Why do appraisals cost so much?” It’s a fair question, especially when clients are unfamiliar with what goes into the process of valuing personal property, particularly fine art. The cost of an appraisal can feel significant, but understanding the rigorous work, expertise, and responsibility involved can shed light on why these services are worth the investment—and why cutting corners by hiring an unqualified appraiser can lead to costly mistakes.
The Expertise of an Accredited Appraiser
First and foremost, appraising fine art is not simply about giving a “best guess” of an item’s value. It is a discipline grounded in years of education, research, and ethical standards. As an ISA appraiser, I have undergone extensive training to understand the nuances of art history, market trends, and appraisal methodology. This expertise ensures that you are not just getting an educated opinion—you are receiving a thoroughly researched, defensible valuation.
But expertise isn’t static—it requires continual upkeep. Appraisers invest heavily in their craft to provide the most accurate and reliable assessments possible.This ongoing professional development is essential to providing accurate and reliable appraisals.
The Complexity of the Appraisal Process
Appraising fine art and personal property is far more intricate than it may appear at first glance. Here’s a breakdown of the typical steps involved:
Initial Consultation and Assessment
Before the appraisal begins, I spend time understanding your needs. Is the appraisal for insurance purposes? Estate planning? A potential sale? Each purpose requires a different approach, methodology, and level of detail.
Thorough Examination
Examining an object isn’t just about looking at it; it often involves studying materials, techniques, provenance, condition, and signs of authenticity or repair. A seemingly simple piece can require a magnifying glass, UV light, and an extensive toolkit of expertise.
In-Depth Research
Once the item is examined, the research begins. This might include reviewing auction records, consulting with specialists, comparing similar works, and verifying provenance. Each piece of research is documented in detail, which can take hours—or even days—for a single item.
Report Preparation
A professional appraisal report is not just a number on a piece of paper. It is a comprehensive document that includes the methodology used, the research findings, detailed descriptions, photographs, and a clearly justified rationale for the value(s) conclusion. The report can be subject to legal and ethical scrutiny, so it must meet the highest standards of clarity and accuracy.
Liability and Responsibility
As an appraiser, I assume significant liability for the valuations I provide. If my appraisal is used in legal proceedings or insurance claims, it must withstand scrutiny. The cost of maintaining professional liability insurance, as well as the time spent ensuring accuracy and compliance with industry standards, is part of the service I provide to protect you.
The Hidden Costs of Appraisal Work
Beyond the time and labor involved in conducting an appraisal, there are significant costs associated with maintaining the tools and resources necessary to deliver high-quality work. Here are a few examples of the investments appraisers make that are not always obvious to the public:
Access to Specialized Databases
To determine accurate valuations, appraisers rely on paid subscriptions to databases like Artnet, ArtPrice, AskART, and other platforms that provide critical sales data. These databases give access to auction results, private sales information, and other market insights, but subscriptions can cost thousands of dollars annually.
Membership Dues with Professional Organizations
Membership in organizations like the International Society of Appraisers (ISA) requires annual dues. These memberships are not merely credentials—they provide access to continued education, ethical standards, and industry resources that ensure appraisers remain at the forefront of their field.
Expensive Reference Materials
Appraisers often purchase specialized books, including catalogues raisonnés, which are definitive publications listing an artist’s complete works. These books can cost hundreds—or even thousands—of dollars each. In some cases, appraisers must acquire rare publications or access archives to verify authenticity and provenance.
Continuing Education
Appraisers are required to take courses, attend conferences, and complete re-accreditation programs to stay current on market trends, appraisal standards, and legal requirements. These opportunities not only involve tuition costs but also travel expenses and time away from day-to-day work.
Insurance and Liability
Professional appraisers carry liability insurance to protect their clients and themselves. Insurance costs, while necessary, are another expense that factors into the overall cost of appraisal practices.
Cheap Appraisals Can Be Costly: Why Expertise Pays Off
While it may be tempting to save money by hiring an unqualified appraiser, this decision can lead to significant problems down the line. An unqualified or inexperienced appraiser may produce a report that is inaccurate, lacks proper documentation, or fails to meet industry standards. This can have serious consequences, including:
Insurance Issues: An improperly valued item may result in being underinsured—or overpaying for insurance coverage.
Legal Complications: Inaccurate appraisals used in estate settlements, tax filings, or litigation can result in disputes or penalties.
Financial Loss: Selling or donating an item based on an incorrect valuation could mean leaving money on the table—or facing tax challenges if the appraisal doesn’t meet CRA requirements.
Appraisals are not a quick or simple process. They require time, expertise, and meticulous attention to detail, all of which contribute to their cost. However, this cost reflects the value of a service that is not only highly skilled but also essential in protecting your investments and preserving your legacy.
If you’re considering an appraisal, I encourage you to view it not as a cost, but as an investment in professional guidance and peace of mind. The work that goes into every appraisal is done with the utmost care and integrity, ensuring that the value of your treasures is understood, respected, and documented.
Investing in a professional, accredited appraiser ensures that your valuation is accurate, reliable, and defensible. If you’re unsure how to identify a qualified appraiser, I’ve written blog posts on how to verify credentials and what to look for in a professional appraiser, which can help guide your decision.