openPR Logo
Press release

Real Estate Valuation of fine art

The researcher in charge of the project “Fidel Micó Catalogue Raisonné” (FMCR) is pleased to announce relevant findings on the appraisal of 29 paintings included in the research. The generally recognized method of valuation among appraisers at auction houses is mostly based on previous auction records to obtain a something usually named “fair market value” (FMV). This value is the price that someone paid for an artwork, no matter, for instance, mental condition of the buyer. According to this method, the value of an artwork is zero in absence of public auction records, and private sales have not value. But, who was born first? Was it the chicken or the egg? Obviously, the cash flow generated by every artwork from the beginning of the creation process is not being taken into account to obtain the current Fair Market Value (cFMV). This fundamental problem was a critical subject of this investigation (FMCR) because undervaluation and overvaluation of paintings may introduces remarkable distortions in the public recognition of the artist.

If artistic creation, sale, transportation, exhibition, publication, advertising, storage, conservation, insurance, and taxation are taken into account, the discounted cash flow generated by an artwork may be calculated. Therefore, it is easy to calculate the net present value (NPV) of every painting shown in exhibition, included in publications, and reproduced in prints. Cash flows of paintings were calculated from their intrinsic capacity to generate costs and incomes by using the available public data. Cost of purchase at the artist’s studio, transportation, storage, conservation, insurance, advertising, exhibition, and tax were collected from different information sources. Incomes were calculated from data of ticket price at exhibitions, visitors, journals and magazine subscriptions, and print sales. It was interesting to find that the painting “La Maja del Río” (95 x 130 cm, oil on canvas, 2000, Cuban private collector), without action record, has generated a NPV of 90 264 USD. Therefore, the cFMV of this painting is not zero, and it has an evident capacity to generate more income. Other paintings were clearly undervalued during commercialization. The best example is the painting “La cañada” (100 x 150 cm, oil on canvas, 2005, USA private collector). This artwork was recently sold for 8 000 - 10 000 USD at the secondary market, in spite of its NPV is 343 383 USD.

In this statistically significant sample of paintings (n > 25), there are not artworks with public auction records which mean that their value at auction houses is zero, but their individual cash flows between 2000 and 2013 suggest a different point of view. The NPV of seven paintings (24%) was lower than sale price at the artist’s studio, suggesting a success ratio of 76% for this business. The distribution of NPV for the remaining painting was as follow: 48% of paintings have a NPV between 50 000 USD and 60 000 USD, 21% between 70 000 USD and 120 000 USD, and 7% between 220 000 and 350 000 USD.

A sensitivity analysis allowed finding more interesting evidence on the value of artworks painted by Fidel Micó. Assuming the purchase of 20 landscape paintings with sizes attractive for collectors of Latin American art, at current price, and an investment in transportation, exhibition, storage, conservation, insurance, publication, and advertising, the NPV was estimated higher than 300 000 USD. The value of each painting increased by 12-fold, after exhibition, publication, and print sales. The most significant variables, within reasonable ranges, were painting price, and print sales. The number of exhibitions and paintings did not introduce significant changes. Finally, these findings demonstrate that public auction records are not absolute and trustable reference systems to calculate the value of artworks, but instead of that, auction records are just raw data for comparison with rational calculations. Otherwise, in absence of auction records, we would always be asking: who was born first?

The Fidel Micó Catalogue Raisonné (FMCR) should be understood as an applied research project intended to explore the work and life of the painter Fidel Micó in the last 40 years. This project, submitted to Catalogue Raisonné Scholars Association and International Foundation for Art Research, may encourage current owners of Micó’s works (mostly from USA, Mexico, Italy, and Spain) to supply information and images for provenance research and authentication. We also hope that the FMCR shows a good sense of how Micó’s method and practice has been throughout his lifetime working in different formats, and genres.

Rodríguez Nº 14, entre Maboa y Rabí, apto. 1, Rpto. Santos Suárez, Municipio 10 de Octubre, La Habana, Cuba.

This release was published on openPR.

Permanent link to this press release:

Please set a link in the press area of your homepage to this press release on openPR. openPR disclaims liability for any content contained in this release.

You can edit or delete your press release Real Estate Valuation of fine art here

News-ID: 422340 • Views: 692

More Releases from Fidel Mico Catalogue Raisonne

Performance of a great master
Havana, February 21, 2020 - The researcher in charge of the project "Fidel Mic Catalogue Raisonn" is pleased to announce the public performance of the great master from February 21 to 28. Mic will be painting at the private gallery "Humidores Habana" (Bulevar de San Rafael, Centro Habana, La Habana, Cuba) to show his exquisite technique to create high quality landscape paintings. Access will be free immediately after inauguration ceremony

More Releases for USD

$100,000,000 USD job contract for travel - $3,000,000 USD referral commission.
Khoja Consultants invites companies, teams or venture capitalists for a $100,000,000 USD contract for travel. The selected company will be providing all accommodations and expenses for a 6-month long business trip around the world. Khoja Consultants expects five-star treatment including close security with private planes, hotels, secured vehicles and helicopters if necessary. More details on the job contract and application are provided at - There is a $3,000,000
Polyurethane Dispersions Market worth USD 2.04 Billion USD by 2020
The report " Polyurethane Dispersions Market by Type (Water-Based Polyurethane Dispersions and Solvent-Based Polyurethane Dispersions), by Application (Coatings, Adhesives & Sealants, Synthetic Leather Production, Fiber Glass Sizing, and Others) - Trends & Forecasts to 2020", The global polyurethane dispersions market is projected to reach USD 2.04 Billion by 2020 at a CAGR of 6.8% between 2015 and 2020. This growth is fueled by the high potential from the textile and
Retail Analytics Market worth USD 5.1 Billion USD by 2020
According to a new market research report "Retail Analytics Market by Business Function (Marketing and Customer Analytics, Merchandizing and In-Store Analytics, Supply Chain Analytics, Strategy and Planning), by Type, by Solutions and by Services - Global Forecast and Analysis to 2020", defines and segments the global retail analytics market on the basis of business function, solutions, services, deployment types, and regions along with providing an in-depth analysis and market size
Metabolomics Market USD 1.24 Billion by 2020
The global metabolomics market is estimated to reach USD 1.24 Billion in 2020, growing at a CAGR of 15.6% from 2016 to 2020, according to a market research report Metabolomics Market 2013-2020, published by iHealthcareAnalyst, Inc. Visit the Metabolomics Market 2013-2020 report at Metabolomics is the scientific study of chemical processes involving metabolites, whereas metabolome represents the collection of all metabolites in a biological cell, tissue, organ or organism, which
Radiopharmaceuticals Market USD 350 Million by 2020
Radiopharmaceuticals Market 2013-2020 report estimates the global radiopharmaceuticals market to reach nearly USD 350 Million in 2020, at a CAGR of 4.9% from 2016 to 2020 - iHealthcareAnalyst, Inc. Visit the Radiopharmaceuticals Market 2013-2020 report Medicinal radiocompounds or radiopharmaceuticals are a group of pharmaceutical drugs which have radioactivity and they can be used as diagnostic and therapeutic agents. Radiopharmaceuticals are used in the field of nuclear medicine as radioactive tracers
Orthobiologics Market USD 5.8 Billion by 2020
Orthobiologics Market 2013-2020 report estimates the global orthobiologics market to reach nearly USD 5.8 Billion in 2020, at a CAGR of 6.2% from 2016 to 2020 - iHealthcareAnalyst, Inc. Visit the Orthobiologics Market 2013-2020 report The global orthobiologics market report provides market size (Revenue USD Million 2013 to 2020), market share and forecasts growth trends (CAGR%, 2016 to 2020). The global orthobiologics market segmentation is based on product types (allograft, bone