When authenticated Indian paintings are accepted as security for a loan, the enforcement valuation cannot rely on a generic property valuation model. The painting’s artist, attribution, authentication, auction history, condition and market liquidity directly influence the amount that can realistically be realised.
A2Z Valuers provides Government Approved Painting Valuation for SARFAESI enforcement requirements, including independent assessment of Market Value (MV) and Distressed Sale Value (DSV) based on the specific painting and its secondary-market liquidity.
The value of a painting as collateral depends not only on its assessed FMV, but also on how quickly and realistically the asset can be sold in the relevant market.
GET EXPERT ADVICE →SARFAESI painting collateral requires the valuation to distinguish between the current market evidence and the value that may realistically be achieved under a time-sensitive enforcement scenario.
The Market Value is established using relevant auction comparables and available market evidence for the artist, school, period, medium, subject, size and quality of the painting.
The Distressed Sale Value reflects the expected realisation where the painting must be sold within a more constrained period. The discount is determined from the painting’s specific market liquidity profile.
A painting with unresolved attribution or authentication can carry materially different enforcement risk from a fully authenticated work with established auction records.
Brief A2Z Valuers for an independent Market Value and Distressed Sale Value assessment for paintings held as collateral. Share the painting details, available authentication documents and enforcement requirement for an appropriate valuation assessment.