Fair Market Value (FMV)

The price at which the artwork would trade in an open market with a willing buyer and willing seller. To assess this, the appraiser will determine which marketplace is most appropriate and collect relevant values by contacting primary and secondary market vendors. This may include auction, private sale, gallery retail, or a combination thereof. Both the buyer and seller must be reasonably knowledgeable of all relevant facts, and neither be under constraint to buy or sell.

Retail Replacement Value (RRV)

The amount that would be required to replace the artwork in the event of a loss with another artwork of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market. To assess this, the appraiser will take into account factors in the replacement process such as availability of and access to similar artworks.

Marketable Cash Value (MCV)

The net value a willing seller realizes after disposing of the artwork in a competitive and open market to a willing buyer. To assess this, the appraiser calculates Fair Market Value less the cost of owning and selling the artwork, such as insurance, dealer commissions, advertising, travel, and shipping. Both the buyer and seller must be reasonably knowledgeable of all relevant facts, and neither be under constraint to buy or sell.

Retail Value

A reasonable amount that would be required to purchase an artwork of similar age, quality, origin, appearance, provenance, and condition within a reasonable length of time in an appropriate and relevant market. Unlike Retail Replacement Value, Retail Value does not include any fees or additional costs, such as taxes, framing, conservation, restoration, and additional commissions.

Liquidation Value

The price for which the artwork would change hands if sold immediately, without regard to relevant marketplace and appropriate use.