New appraisal estimates Detroit's art collection worth up to 4.6 Billion

http://finance.yahoo.com/news/detroit-art-valued-4-6-182502492.html

DETROIT — A city-commissioned report on Detroit’s fine-art collection released Wednesday pegs its entire value between $2.8 billion and $4.6 billion, a sharp increase over a previous estimate that could create a headache for the city in bankruptcy court.

Some creditors pushing the city to sell or lease its world-class art collection argue that the city previously lowballed the artwork by valuing only a slice of the collection at the Detroit Institute of Arts.

With the comprehensive estimate by Artvest Partners many times the earlier estimate of up to $867 million, the battle over Detroit art could play a big role in a trial on the city’s debt-cutting plan to be held next month.

WBill wrote:http://finance.yahoo.com/news/detroit-art-valued-4-6-182502492.html

DETROIT — A city-commissioned report on Detroit’s fine-art collection released Wednesday pegs its entire value between $2.8 billion and $4.6 billion, a sharp increase over a previous estimate that could create a headache for the city in bankruptcy court.

Some creditors pushing the city to sell or lease its world-class art collection argue that the city previously lowballed the artwork by valuing only a slice of the collection at the Detroit Institute of Arts.

With the comprehensive estimate by Artvest Partners many times the earlier estimate of up to $867 million, the battle over Detroit art could play a big role in a trial on the city’s debt-cutting plan to be held next month.

Fuckin eh!!!! I never knew graffiti was worth so much.

I'm pretty sure that with that much value, the creditors are going to have a fuck you, pay me attitude

Wally Fairway wrote:I'm pretty sure that with that much value, the creditors are going to have a fuck you, pay me attitude

Thing is, an appraisal isn't cash. If the sale price doesn't match the appraisal, it turns out to be moot issue. If you think appraisals on real estate are uncertain, try appraisals on artwork.

tTy wrote:

Fuckin eh!!!!  I never knew graffiti was worth so much.

Joe Louis Fist.....there's a billion right there.

Sell it all and replace them with prints, no one will know the difference.

Son of Sparta wrote:

Thing is, an appraisal isn't cash.  If the sale price doesn't match the appraisal, it turns out to be moot issue.  If you think appraisals on real estate are uncertain, try appraisals on artwork.

Actually, I've read recently that because interest rates are so low and financial markets are still in flux, art is routinely going for well above appraisal right now (EDIT: as an investment for ultra rich people).

Of course, THIS appraisal could have taken that into account.

 

Son of Sparta wrote:

Thing is, an appraisal isn't cash.  If the sale price doesn't match the appraisal, it turns out to be moot issue.  If you think appraisals on real estate are uncertain, try appraisals on artwork.

That's all true, but if the creditors are willing to take $1 in cash, or $1 in appraised value of art, Detroit had better come up with the cash if they want to keep the art. Any auction could/would have a minimum bid as well.

I wonder how many pieces of art have walked out the door over the years. You know Kwame grabbed some of that when he was the Hip Hop Mayor.