Demystifying Fair Market Value

FMV represents the price of an artwork that is sold between two participating parties. It is an incredibly sensitive numerical figure that is impacted by various macroeconomic factors. The price, or value, assigned to an artwork is determined through qualitative analyses by art specialists and advisors who have qualifications within the field of art history and years of working experience within the industry tracking artists and the circulation of their works. There is no finite mathematical formula that will calculate the FMV of an artwork - it is an art, not a science. Any successful valuation requires technological advancement and human touch.

While this is still very much the case, at MyArtBroker we have translated forty years of human expertise in the prints market into a self‑correcting, machine‑learning valuation engine – “a brain that never sleeps, never forgets a sale, and never succumbs to bias.” Coupled with our specialist team, this technology now underpins every service we offer: Instant & Expert Valuations, live pricing inside MyPortfolio, and transparent trading on our Trading Floor.

The art market is composed of primary and secondary markets, which sell and acquire works by different methods. The differences of each are important to identify as each market influences FMV selling prices that fluctuate according to the demand of each market.

The primary market is made up of smaller galleries dedicated to developing artist’s careers and deal works, often acquired directly from the artist’s studio, that have no prior sales history.

The secondary market refers to pre-owned artworks with a previous sale(s) record. Secondary sales operate by consignments through mega-galleries, digital platforms like MyArtBroker, art dealers, and, largely, auction houses.

Primary and secondary markets and the institutions that they encompass rely on one another for success and ultimately drive the art market and FMV of artworks. Auction houses are built off secondary sales, galleries are built off primary sales, and artists’ markets rely on these institutions to help promote and sell their works at a current and accurate FMV.

Learn more about the history of the art market here.

Assigned sales estimates and FMVs, although different, work synonymously to determine an artwork’s worth. Estimates are indicators of the minimum and potential selling points of works, and there are various elements to consider when assigning a realistic range. Several key considerations listed below determine what numerical bracket the FMV of an artwork will fall in.

1. The reputation of the artist, are they established or emerging?
2. What gallery representation does the artist have? A smaller gallery or a mega-gallery?
3. The longevity of their market, is there relevant sales data to compare?
4. The physical attributes of the work - size, condition, exhibition history and provenance.

The physical attributes of works are unique and important for marketing a work. For example, large-scale works do not always guarantee a sale as this can limit the amount of buyers. Condition always matters and exhibition and provenance of an artwork are reflections of demand and its historical significance, which impacts auction estimates and value.

Sales histories are also pertinent and are a reflection of the longevity of an artist's market, an exclusive diarised account of spending power and buyer’s taste. These reflect fundamental information that is used to analyse patterns, repeat sales performances, and identify comparable works within an artist’s market, where works have sold, and when.

However, not all sales histories are relevant or made public. Data that spans past five years are not accounted for to determine FMV as these price points are not an accurate reflection of current trends and demands within the art market. This is why, when understanding FMV to acquire an artwork, it is important to work with a trusted advisor, like MyArtBroker that understands market trends, the longevity of an artist's market, and can ensure you are buying at a fair price for the work’s worth.

Find out more about other aspects of transparency in the art market here.

Assigning estimates requires the skilful implementation to drive desired outcome of market sales and high FMVs. During auction sales, if bidding is started low against preset estimates this is often interpreted as an auction house tactic used to drive a high volume of bidding. Intense bidding generates excitement and demand, which from a marketing perspective has a positive impact on an artist’s market. David Hockney’s, Portrait Of An Artist (Pool With Two Figures) (1972) is an example of this bidding influx. Christie’s New York offered this work in 2018, and opened the bidding at a low offer of $20 million, only a quarter of its high estimate. Offers soared above the asking price, and the work hammered at $80 million creating a record for Hockney as his most expensive work ever sold at auction. Record sales positively impact the FMV of comparative works and the artist’s overall market. Since this sale, Hockney’s market has seen considerable success across all fine art categories.

MyArtBroker has exclusive access to David Hockney prints. Get in touch to acquire an artwork and grow your portfolio.

While such strategic use of estimates certainly still plays a role, the overarching drivers in 2025 point to a market that is becoming more accessible, diverse, and focused on volume at its base.

Alternatively, assigning low estimates prior to bidding can negatively impact an artist market, causing a lower threshold for the work (and others) than its actual worth. This exact scenario was illustrated recently, as The Art Newspaper reported on 16th of March, that Rosebery Fine Art Auctioneers pulled eight sculptures by British artist Bill Woodrow from their sale featuring works from the Saatchi & Saatchi collection. Charles Saatchi is a renowned art world collector and marketing mogul, an important name on the provenance of artworks. Although Woodrow never saw the same success as some of his artistic contemporaries, the assigned estimates of his works were thought to be shockingly low, which would ultimately damage his career if the works were to be offered publicly.

Accurate estimations are principal factors to ensure successful auction house sales. A lousy sale or auction house buy-in can harm an artist’s overall market, driving the yield value of their works, within the market and held in private collections, to cautionary levels.

In the prints sector – where genuine comparables exist – FMV can and should be empirical. Our proprietary algorithm analyses over 400 auction houses, MyArtBroker’s own verified private sales, and synthetic valuations issued by our specialists. Each datapoint is scored, weighted, and re‑tested against subsequent transactions, a process called repeat regression. The model literally marks its own homework every few hours, sharpening accuracy with each sale.

A named specialist reviews every output before it reaches clients, ensuring statistical discipline is balanced by professional context. The result is a living FMV benchmark that underpins everything we do.

Instant Valuation – Your Starting Benchmark

Our online tool interrogates live data from more than 400 auction houses, authenticated private sales, and current collector demand to return an indicative price band in seconds. It is ideal for portfolio snapshots or insurance renewals, and it gives you an immediate sense of where comparable prints are trading today.

Expert Valuation – The Essential Next Step

A dedicated print specialist examines the specific edition, condition, provenance and collector demand for your work, layering those findings onto the algorithm’s data engine. Within two working days you receive a written appraisal, free of charge, and a direct consultation to decide what to do next. Because it captures nuances that can shift value by tens of percent, an Expert Valuation is the critical foundation for any sale strategy.

By fusing algorithmic speed with human insight, both valuation paths converge on a transparent, defensible fair‑market figure – allowing you to act decisively while safeguarding market integrity.

The art market has historically been a divinely lit playground for the ultra-wealthy. However, the market is working towards more diversification for young and experienced collectors.

Here at MyArtBroker, fair market value sits at the centre of everything we do. Every tool we have built – our continuously learning valuation engine, MyPortfolio’s live dashboards, and the Trading Floor – exists to reveal, rather than obscure, the price at which a willing buyer and seller can meet today.

For the art market as a whole, adhering to fair market value keeps liquidity flowing and shields artists' markets from the boom-and-bust cycles that damage reputations. It's for this reason that our valuations are free, seller fees are set at 0 percent, and our methodology is published in plain language – so every participant can trade on equal footing, backed by data and guided by expertise.