Meg, I think that my responce got overlooked during the recent drama here...... Anyway, here is the post that replied to your last post to me. Thank you for your interest in this interesting conversation.
Maybe this may be interesting to you, considering your "auction house" example....
As you stated in your earlier post:
Are you trying to say that the following scenario is how RCV is determined??????
Mrs. Insured purchases an oil painting for $1,000.00 from ABC auction house, with the help of her interior designer. The fee to enter the auction is $25.00, the Interior Designer is charging $100.00 per hour, and the auction lasts 3 hours. While there, Mrs. Insured buys lunch for herself and the interior designer for $25.00. The fee for parking at the auction house is $10.00. The cost of gas to and from the auction is $35.00.
What you should think about is this: "Auction House Valuation" is different then "Replacement Cost Value".
Quoting an auction house price is essentially quoting the whole sale price, what the Art stores would pay.
...auction prices usually are lower than what they would sell for at a retail shop. An auction value is usually the closest value to wholesale, Kerry says. This is because an auctioned piece is only on sale for a short period of time — until the auctioneer's hammer falls — which limits the demand. Shop dealers often ask, and can get, a higher price on an object because they can put it on display for weeks and months, waiting for just the right customer to walk through the door.
Source: Antique Road Show http://www.pbs.org/wgbh/roadshow/tips/value.html
Meg, if you quote an auction price, you must add in the costs that are not included, such as framing, auction costs, etc., as these costs are absorbed into a store's asking price, which is the replacement cost value.
For important antiques and collectibles, appraisers such as Kerry also provide what's known as an insurance value, so that the owner can replace an object if it is destroyed or stolen. Insurance values tend to be set at the top end of retail value. That is done, Kerry says, so that those who need to replace goods lost to theft or to accident will have enough insurance money to buy an equivalent item from a dealer at current prices.
Now, if you would find the same piece of artwork in a "store", the retail price would likely be 30%-50% more then the "auction price". If you add in your costs to the auction value, you still maybe at a lesser value then the retail price!