How to Assess The Value of a Work of Art Realistically ?

Estimating the value of an artwork is a complex task that takes various factors into account. Whether you are an art collector, buyer or seller, valuing an artwork is crucial to making an informed decision. Here are the most important points that can help you to realistically assess the price of an artwork:

Reputation and Artistic Identity in The Art Market

The name of the artist plays a central role. An established, globally recognised artist often achieves higher prices than an up-and-coming or unknown artist. The following aspects influence the value:

• Exhibition history: Has the artist exhibited in renowned galleries or museums?
• Auction results and achieved sales prices: How were works by the artist valued and sold at auction?
• Publications: Are there any articles or books about the artist?

💁🏽Tip for artists: Use this information to communicate the value of your work. Your exhibition history and publications can contribute significantly to the pricing.

Provenance and Authenticity: Their Influence on The Art Trade

The origin of a work of art, also known as provenance, is a key factor. Well-documented proof of provenance increases trust and the value of the work.

• Former owners: Does the work come from a prestigious collection
• Certificates of authenticity: Is there evidence to confirm the authenticity of the work?
• Historical relevance: Was the work part of important exhibitions or historical events?

🔎 Note for collectors: Make sure you have a complete provenance. This protects against forgeries and increases the value of your artwork in the long term.

Technique and Medium: Key to Identifying a Work of Art

The material and technique used can significantly influence the price of a work of art. Works made from rare materials or using sophisticated techniques such as fresco or intaglio printing often fetch higher prices as they are more complex to produce and require exceptional craftsmanship.

• Material value: Works made from rare or high-quality materials are often more expensive. For example, a painting made with 24-carat gold leaf can realise a significantly higher value than a standard oil painting.
• Technical difficulty: A complex technique or a rarely used method can increase the value. An example of this is the use of fresco painting, which is often considered particularly valuable due to the complexity of the technique and the time involved.
• Medium: Paintings on canvas generally achieve higher prices than drawings or prints. For example, large-format oil paintings on canvas are often more expensive than watercolours or lithographs due to the greater investment in materials and effort.

Size and Condition of a Work of Art: How They Influence The Price

• State of preservation: Restored or damaged works are less valuable. A painting with visible cracks or a sculpture that has been reassembled often loses market value.

• Originality: Works with subsequent alterations or repairs lose value. An original painting that has been painted over or reworked is worth less than the original work.

   

Understanding Art Prices: The Influence of Market Demand and Current Trends.

If a particular artist or style of art becomes the focus of public attention, this can significantly increase the value of a work of art. The popularity of an artist or an art movement can be significantly influenced by media attention, auctions or exhibition successes.

• Trends in the art market: Contemporary art or digital art such as NFTs are particularly popular at the moment. An NFT artwork by a well-known artist such as Beeple has realised millions, while traditional media such as painting or sculpture are less in demand.

• Popularity of the artist: Artists or movements that are currently in demand can realise high prices. An artist such as Banksy, whose works appear repeatedly in the media, can realise significantly higher prices than lesser-known contemporary artists.

   

Why Rarity and Uniqueness Influence The Art Market

One-off pieces or limited editions are often more expensive than mass productions. Unique works of art or limited editions offer buyers an exclusivity that mass productions cannot provide. This rarity and the opportunity to own something unique not only increase the collector's value, but also the market price.

• Unique status: A unique work has a higher collector's value. A unique piece such as an original painting or sculpture usually has a much higher market value than a reproduction or series production. An example of this is the painting ‘Les Femmes d'Alger’ by Picasso, whose unique status catapulted the price into the millions.
• Limited editions: The price of prints or photographs increases with a smaller number of copies. For example, a print of 10 copies can be significantly more expensive than a print of 100 copies, as the smaller edition increases the exclusivity and collector's value. Works such as the limited edition screen prints by artists like Andy Warhol are often particularly valuable because of their small print run.

Emotional Factors in Works of Art: Why Personal Meaning Increases The Price

Art has a subjective value that goes beyond its material or historical value.

A collector's personal connection to a work can significantly influence the price. A painting that commemorates a special experience, a memory, a favourite motif or a special event can be invaluable to a buyer.

For example, a collector might be willing to pay far more than market value for a landscape painting of a particular region that has personal significance to her. Works with emotional resonance, such as a portrait reminiscent of a loved one or an abstract representation that triggers strong feelings, often find buyers who factor their subjective connection to the work into the price.

These emotional and subjective factors make art a unique market where value is often determined by individual feelings.

Practical Steps to Art Evaluation

• Do your research: Find out about the artist, similar works and past auctions.
• Consult experts: Art dealers, appraisers and auction houses can provide a professional valuation.
• Use online databases: Platforms such as Artnet or Sotheby's offer access to auction results and market analyses.

How to Calculate The Price of a Work of Art? Use The Art Price Formula: (Height + Width) × Artist Factor

At art24, we are constantly confronted with the question of how the price of a work of art can be determined. The mass and the artist factor are relevant here.

One of the best-known methods for a guide price is based on a simple formula:

Price of a work on paper or painting = (height + width) × artist factor

Price of a sculpture/3D work = (height + width + depth) × artist factor

This formula has historical roots dating back to the Renaissance and was further developed during the Impressionist period. However, it is not used to determine a precise market price, but merely provides an orientation for calculating a possible guide price. The formula is particularly popular with young artists as it provides a simple basis for calculation.

To further categorise the value of a work of art, a factor scale is used, which uses the artist factor as a multiplier. The following categorisation serves as a guide:

Factor 1 - 10: Young talents and graduates

• Characteristics: First exhibitions, little experience in the art market.
• Type of artist: Graduates of art academies, first creative years.
• Price/cm²: Very low (under 50 €/cm²).
• Example: Graduation works or works by up-and-coming talents.

Factor 11 - 100: Established regional artists

• Characteristics: Regional recognition, regular exhibitions, gallery representation.
• Type of artist: Established, but not internationally recognised artists.
• Price/cm²: 50 - 200 €/cm².
• Example: Works that are traded in regional galleries.

Factor 101 - 1,000: Nationally recognised artists

• Characteristics: Art market presence at national level, mentions in art magazines, occasional auction sales.
• Type of artist: Artists with growing demand and stable market position.
• Price/cm²: 200 - 1,000 €/cm².
• Example: Artists with solo exhibitions in renowned national galleries.

Factor 1,001 - 10,000: International artists (established)

• Characteristics: Internationally recognised, represented by renowned galleries, works in collections and museums.
• Type of artist: Artists with a lasting influence on the art market.
• Price/cm²: 1,000 - 10,000 €/cm².
• Example: Works by Chagall, Dalí (prints in the lower range).

Factor 10,001 - 100,000: Icons of art history

• Characteristics: Art historical relevance, top auctions, high demand.
• Type of artist: Modern classics, pioneers of art history.
• Price/cm²: 10,000 - 100,000 €/cm².
• Example: Picasso, van Gogh, Monet.

Factor > 100,000: Museum art and world class

• Characteristics: Works with exceptional historical, artistic or symbolic value.
• Type of artist: Worldwide icons, masterpieces with record-breaking prices.
• Price/cm²: Over €100,000/cm².
• Example: Leonardo da Vinci's ‘Salvator Mundi’ (sold for USD 450 million in 2017).

But what about digital works?

While traditional artworks are often valued according to physical parameters such as size and material, the value of NFTs depends more on the dynamics of the digital market, trends and technical innovation. It can be helpful for artists to consider a mix of objective factors and subjective hype to determine the price of their digital works.

Formula for orientation:

A possible guideline for pricing NFTs could be as follows:

NFT price = (creation cost + artist factor + rarity factor) × market trend factor

Explanation:

• Creation effort: Time and costs for the creation of the digital work.
• Artist factor: Fame and reputation of the artist, similar to traditional art.
• Rarity factor: Uniqueness and limitation of the NFT.
• Market trend factor: Hype surrounding the work, the genre or the NFT market in general.

Conclusion

Art valuation is a combination of objective factors such as provenance, condition and technique as well as subjective aspects such as emotional value and trends. In-depth research and expert advice are the key to realistically assessing the value of a work of art. Whether for buying, selling or pure curiosity - knowing these factors will help you make smarter decisions.