In determining the value of an artwork a wide range of variables are assessed. We consider; the sales precedent for the artist on the secondary market, the subject matter, size and medium of the artwork, the date of creation and the importance of the work within the artist’s oeuvre, the condition of the work, its provenance and the cumulative totality of these factors for each work examined.
Comparable works provide an important and accurate evaluation tool. We will look at the sales precedent for an artist and what similar works are achieving at auction. In this respect, recent sales are more relevant to show present market value than a sale that, for example, took place 5 years ago and may no longer be relevant. For artists who have an established secondary market where a large number of works have been sold at auction, comparable works are very important and we will look at the average prices realised for similar works sold recently. Comparable works become less important for artists with very little secondary market. If, for example, only 10 works by an artist have been sold at auction, then any price realised may be important in determining value.
Condition can also have a huge impact on value. Is the artwork in the same condition as when it was first created? Have there been structural changes or changes to the appearance? Is the condition of the work likely to determinate further in the near future?
Provenance is the sales and acquisition history of an artwork. A strong provenance – for example if the work was in the collection of a well-known and respected collector, known for making high-quality acquisitions – may positively impact value.
Subject Matter or the image depicted in a work can have an impact on the piece’s desirability. This can be quite specific to each artist. Irma Stern’s portraits, especially from the Congo and Zanzibar are, for example, particularly prized in the market and will, on average achieve higher prices. Conversely, J.H Pierneef is well-known and celebrated for his depictions of the South African landscape and Pierneef’s landscapes are valued, on average, higher than his works including figures.
Period and the date of creation, like the subject matter of an artwork, influences value and is different for each artist. Particular times in an artist’s career may be more significant. These are often well-established and may have already developed as ‘in demand’ during an artist’s lifetime or because particular times in an artist’s life may have been recognised by art historians as being more artistically important or creative.
While the specifics of the artwork listed above play an important role, general market conditions and the broader economy also play an overarching role in determining the value of an artwork at any specific time. If for example, results, on average, have been poor on recent sales then we may be more conservative in valuing a work whereas a stronger market, on average, may lead to more confident values.
