Need to Know What Something is Worth? Talk to Our Appraisals & Consignments Team.

Waddington’s Appraisals & Consignments department is often the first point of contact for clients looking to better understand what they own, whether they are planning for the future of a collection, dealing with downsizing, navigating an estate, or interested in selling. Bridging research, market insight, and client service, our team works across a wide range of objects and circumstances, offering informed guidance tailored to each situation.

We sat down with Appraisals & Consignments Coordinator Katie Mergelas and Appraisals & Consignments Specialist Claire Laycock for an inside look at how they help clients with their collections, what distinguishes formal appraisals from auction estimates, and why accurate, up-to-date valuations are an essential part of responsible collecting.

Before we get started, tell us about yourselves.

KM: I graduated from Queen’s University with my Master’s in Art History in 2021. I joined Waddington’s following working at an art conservation studio where I assisted with condition and treatment reports, documentation, and research for appraisals. In my role as Appraisals and Consignments Coordinator at Waddington’s, I am often the first point of contact for clients looking to sell, or who are interested in pursuing formal, written appraisals to help them make informed decisions about the future of their collections. [Read more about Katie here!]

CL: Before joining Waddington’s, I worked across a few different areas of the art world, starting in museums and galleries, and then moving into art advisory, where I worked with private clients on acquisitions and collection management. I also spent time at an online art marketplace managing gallery accounts, which shaped my understanding of how the art market functions digitally. Across these roles I’ve worked closely with clients to navigate buying, selling, and managing their collections. I hold an MBA in Art Collecting Management from L’Institut d’études supérieures des arts in Paris. [Read more about Claire’s takeaways from Paris Art Week here!]

What exactly does the Appraisals & Consignments department do, and how is it different from the specialists who handle auctions?

CL: We work with clients who need formal appraisals for a variety of reasons, on a diverse range of appraisal projects. Projects can range from one painting to an extensive collection for an estate that may include fine art, decorative arts and more. Our team has the benefit of working closely with all of our various department specialists, so we get to see a lot of different types of items, while providing one point of contact for our clients.

Recently we worked on an estate which required a formal appraisal for probate, with an extensive collection spread across a home, an office, and a large storage space. When we opened the storage area, we found carefully wrapped works that hadn’t been seen for years, which felt like uncovering a hidden part of the collection. The collection included a variety of categories, from Canadian art and sculpture to international prints and multiples, Chinese scrolls, Japanese woodblock prints, ceramics, and glass. By the end of the project, we had developed a strong understanding of the collector’s taste and how the collection fit into their daily life.

Once probate was finalized, the estate chose to sell a large number of works at auction. Having already completed a thorough inventory during the appraisal, our team was well positioned to help guide them through the next stage for their collection.

Why do people need an appraisal?

KM: There are lots of reasons someone might need an appraisal. They might be working with an insurance provider who’s asked for a formal valuation of their art, or is planning ahead and thinking about how to distribute their collection with family members. In other cases, an appraisal may be needed for probate after someone has passed away. Corporations and institutions also rely on appraisals for collection management or insurance coverage on corporate art holdings.

We’ve had clients come to us with inherited items, thinking they know what they have, only to discover it’s far more valuable than expected, or sometimes, the opposite. Those are just a few examples; we’ve seen and assisted with a wide range of situations and are always happy to chat more about your needs to help you make the best decision.

Explain the differences between appraisals: insurance, donation, fair market value and estimates? When does someone need a formal written appraisal versus an informal auction estimate?

CL: These are some of the most common questions we get, and for good reason, because these terms are often used interchangeably.

A fair market value appraisal reflects what an item would reasonably sell for on the open market. These appraisals are most often needed for things like probate, estate planning, charitable donations, division of assets, or legal and tax-related matters. For donations of cultural property in Canada, fair market value appraisals must meet the specific guidelines of the Canadian Cultural Property Export Review Board (CCPERB), which we are happy to assist with.

An insurance value appraisal, on the other hand, is about replacement, not resale. It establishes the replacement value: what it would cost to replace an item with an identical piece, or with the closest appropriate equivalent, in today’s market. Because the goal is protection rather than sale and the markets considered are different, insurance values are often higher than fair market values, as the methodology behind them differs.

An auction estimate is something else entirely. It’s not a formal appraisal, and it’s not intended for insurance, tax, or legal use. An auction estimate is a value range that reflects what we believe an item would likely sell for at auction, based on current market conditions. We’re happy to provide auction estimates at no charge, as they’re part of the consignment process.

In short: if you need a valuation for paperwork, planning, or protection, you’ll want a formal appraisal. If you’re thinking about selling, an auction estimate is usually the right place to start.

How do you determine an item’s value? 

KM: Determining an item’s value depends on the type of appraisal required. Take an insurance value appraisal, for example, which is defined by the International Society of Appraisers as “the cost to replace an item with another property having similar qualities within a reasonable amount of time in the most relevant marketplace.”

The key here is “the most relevant marketplace”. Where is this artwork typically sold, and how does the client usually buy? Do they primarily purchase at auction, or do they work closely with a particular gallery? Those details matter, and they directly influence how the value is determined.

For fair market value, the approach is different. In that case, we focus on completed sales rather than asking prices. There can be many different asking prices for the same item, but what really matters is what people are actually paying for comparable works. To get that data, we consult a variety of price databases – including Waddington’s own extensive Prices Realised database.

How long does the appraisal process typically take? Why?

CL: The timeline depends on the scope of the project and the information available at the outset. If a site visit is required to take a full inventory and photograph items, that will extend the timeframe. On the other hand, if a client already has high-quality images, measurements, condition notes, and any relevant provenance or documentation, the process can move along more quickly. In some cases, a single missing detail like a measurement or photograph can hold things up, which is why we work closely with our clients to track down the relevant information early.

We take the time to understand each client’s needs and deadlines, and do our best to structure each project so that expectations are clear and timelines are realistic. Of course, the appraisal of one item takes much less time than a collection.

How often does someone need an appraisal?

CL: The industry best practice recommendation is to have insurance appraisals updated every three to five years. Markets change, replacement costs increase, and shifts in demand have a real impact on value over time. An outdated appraisal can mean being under or over insured without realizing it.

KM: We often see just how important those updates can be. Clients will contact us with an appraisal from ten or fifteen years ago, surprised to learn how much the market has shifted. Sometimes this shift is in their favour, sometimes not, but either way having accurate information about a work or collection is essential.

CL: Other types of appraisals really depend on why the appraisal was done in the first place so there isn’t a single rule that applies to every situation. Insurance values tend to need the most regular updates, while appraisals completed for probate, donation, or estate planning are typically tied to a specific moment in time and may only need to be revisited if circumstances change.

Do people need an appraisal to get insurance for their collection? How seriously should people consider keeping an inventory for their collection?

KM: If you have an art collection, big or small, your insurance provider will typically require a formal, written appraisal. This helps ensure you’re getting the right coverage for the right pieces.

As part of the appraisal process, each item in your collection is documented individually, usually with a photograph and key details like the artist, title, medium, date, provenance, and condition. Keeping this kind of inventory is incredibly helpful, especially in the event of loss or damage. An up-to-date appraisal gives your insurance provider the most accurate information possible, making the claims process much smoother should you ever need it.

Beyond insurance, a well-organized inventory can also be useful if you decide to sell parts of your collection at a later date, or simply as a way to make things easier for your family in the future. Having everything clearly documented helps others understand what’s what and takes a lot of guesswork out of the process.

How could an appraisal lead to selling at auction?

CL: A formal appraisal establishes a value based on a clearly defined purpose, such as fair market value or replacement value. Once a client understands what they have and what it’s realistically worth, they’re in a much stronger position to decide next steps. For some clients, that step is estate planning – for others, it’s sale.

KM: Sometimes past appraisals become the paper trail that brings clients full circle, leading them back to Waddington’s years or even decades later. Waddington’s has been around for over 175 years and many of our specialists have dedicated a significant portion of their careers to the company. Claire and I benefit daily from the depth of knowledge our colleagues have built over time, but there’s also something genuinely special in those moments when a client reaches out about a past appraisal and discovers that the very specialist who handled it (like Bill Kime in our Decorative Arts department!) is still here, just down the hall. It turns what could be a routine inquiry into a meaningful continuation of a relationship, and can sometimes be the first step in bringing an object to auction.

Are appraisals confidential? What about data storage?

KM: All formal appraisal reports have their intended users explicitly stated within the report. As an example, these users could include family members, an insurance provider, and/or the Canada Revenue Agency. Our appraisals are private and confidential and not to be used by anyone who is not directly named on the report. Our records are kept securely on file in accordance with standard appraisal practices. Client data is never shared.

How much does an appraisal cost?

CL: Appraisal fees depend on the scope and complexity of the project. Our standard fee for a formal written appraisal report is $350 per hour. For larger or more complex projects, a flat rate may be more appropriate. Auction estimates for consignment are complimentary.

Every project begins with a conversation about your needs and objectives. From there, we assess the scope of work and prepare a customized appraisal agreement that outlines the approach, timing, and a comprehensive cost estimate for your project. There is no charge for this initial assessment – we encourage you to get in touch with us to explore further.

What information should be provided for the most accurate appraisal? When starting a collection, what are best practices for keeping receipts? 

KM: For the most accurate appraisal, good documentation is key. We typically ask clients to provide clear images of the work from multiple angles, including overall photos or close-ups of any signatures or marks. We also look for images of any labels, stamps, or handwritten inscriptions as these can be important clues to a piece’s history. In addition, provenance documentation is extremely helpful which might include receipts, certificates of authenticity, exhibition history, or correspondence related to the work.

When it comes to starting a collection, best practice is really to stay organized from the beginning. Ideally, keep a digital record of your collection including everything mentioned above, which makes it easier to share details with your appraiser, insurance provider, or trustees.

Working in this job, we have seen many different organizational methods, some more successful than others. One of my favourites was a photo album that had a dedicated two-page spread for each work in the collection: the first with a Polaroid photo and a handwritten description, and the second with the original receipt. As an example of a more disorganized approach: during one project, our office floor space was taken over by dozens of plastic bins full of printed-out invoices that had to be cross referenced against the works in an estate. At the end of the day, it is important to ensure that the information pertaining to your collection is clear, concise, and easy to access.

Which factors most impact an item’s future value? 

CL: An item’s future value is influenced by several key factors. The artist or maker is often the most important, along with the subject matter and the period of the artist’s career in which the work was created. Other factors include the medium and size of the work, as well as its provenance. Rarity and condition also play significant roles, as scarce works in excellent condition can be more desirable. Additionally, the quality of the work, its cultural importance, and overall market taste or demand can strongly affect how its value may grow over time.

KM: Our best advice when adding to your collection is to be sure that you are buying from a reputable auction house or gallery, or that you discuss your purchase beforehand with an art advisor or specialist. At Waddington’s, our team is always happy to assist clients in making the best decisions for their collections, whether that means buying something new or making the choice to sell.

time for an appraisal or ready to sell?

Find Out More

If you’re ready to sell, we invite you to fill our our confidential Consignment Form or contact us at:
416-504-9100 / 1-877-504-5700 or [email protected]