David Shapiro Fine Art

Art appraisals for collateral loans

Art collections are today often among the significant assets in a portfolio, and as such, collectors are increasingly benefitting from the use of their art as collateral for loans. DSFA provides art appraisals for banks and other lending institutions, allowing borrowers to maximize the financial benefits of their collections, whether these loans are used for collection growth or for other purposes.

When valuing art for collateralized transactions, the appraisal is typically Marketable Cash Value (MCV), which is defined by the Appraisers Association of America as “the net value a willing seller realizes after disposing of property in a competitive and open market to a willing buyer. Both the buyer and seller must be reasonably knowledgeable of all relevant facts, and neither being under constraint to buy or sell.” Appraisals for collateralized transactions may also be for Fair Market Value (FMV), “the price that property would sell for on the open market,” if requested.

DSFA can provide referrals to appropriate lenders for those seeking to release liquidity from their art collections through collateral loans.

Call to learn more about DSFA appraisals for collateral loans.