Underwhelmed
The valuations given for fair market value for both artworks that were submitted and the justification thereof seem one dimensional/ lacking depth.
Réponse de iValuations
Thank you for your feedback, we are sorry that you feel the service was not satisfactory.
We were tasked with providing a professional opinion on the value of these items. We identified the artist, the medium, a short biography and how such art pieces fit into the current market. As professionals it is not normally within the scope of our work to supply a comprehensive justification of why we reached such a value unless specifically asked.
Nevertheless, in addition to the valuation documents we did provide you with an explanatory note of why there was a large difference between the fair market value and the insurance value. This is an extract of that explanation that was sent to you:
"A note on the values, and why there is such a large discrepancy between the Fair Market Value (FMV) and the Insurance Value (IV) of these paintings: this style of traditional South African art now commands relatively modest prices at auction. The decline in value is primarily driven by a large generational shift in collector tastes and interior design aesthetics.
Modern buyers have moved away from traditional gilt-framed landscapes in favour of contemporary works that align with modern interior styles. The market for this specific visual style is saturated with a high volume of supply, coupled with a shrinking pool of older collectors who value this type of traditional landscape realism, has considerably reduced the secondary market demand, leaving these technically proficient paintings available at very low market values.
In contrast, the Insurance Value is a value designed to replace in the event of a loss. As one cannot easily or immediately replace a unique artwork at auction, this higher figure covers the cost of purchasing an equivalent piece from a high-end retail gallery, factoring in gallery markups, dealer commissions, and the considerable high modern cost of custom making a quality frame.
The FMV is a realistic selling value, whereas the IV is what it actually takes to replace it with a similar artwork from a retail environment."
If there is something more we could have done or supplied, please get in contact and we would be glad to discuss how we can improve, or provide more insight on these specific pieces.
