"From one work to a whole collection,
here's the how to's on buying art
...starting with why you would even want to."
For the complete picture read
protecting yourself,
the second part to this guide.
Or for a more complete integrated and printable pocket
version, download our 'Insider's Guide to Buying Art'
Why buy art?
People buy art for one of three main reasons
•They like it, and so can look forward to the
experience of more pleasure in the future
•They hope their taste will impress others
•They hope or expect that their purchase will
increase in value
Art for pleasure
The first reason is without a doubt, the best reason for buying art, and as with
other things of quality, it's a good idea to buy the best you can afford. Tastes
may change over time, but a carefully chosen piece of art should provide years of
pleasure.
Art for decoration should also not be discounted. The right accent for a room or
to complement furniture may not be the typical catalyst for purchasing high art,
but our mission of “bringing the opportunity of owning and enjoying original
art to all people” begs the question, why have a poster when you can 'get
real'?
A statement of taste
As for buying art to impress others: if you are the sort of person who would also
marry to impress others, we suggest that you seek advice carefully.
Art for investment
Buying art for investment purposes is a tricky business and values can depend on
fashion, rarity, condition, provenance and other factors. Memories of soaring prices
during the 1980's and recent sales for works by Klimt, Picasso and Bacon of over
$100 million can be seductive for the unwary investor. However, a
2006 report by Merill Lynch ranks art as among the worst performing investments.
Additionally, if you buy art specifically for investment purposes, tax law states
that you may not 'derive pleasure' from it; in other words you can't hang it in
your home; it must be stored in a vault. There is nothing to stop works bought for
pleasure still increasing in value while you enjoy them in the home or office but
if you are looking to make quick money, buying and selling art is not the way.
One sound piece of advice for beginning art investors is to approach it as you would
when buying a home. If you buy something you enjoy living with, then market fluctuations
won't matter. If you only bought it to sell later at a higher price, then you're
likely to experience little enjoyment on either count. Sort out what art you like
most, and then hopefully some of the points below and elsewhere on the site, will
provide enough background for you to make a satisfying purchase.
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What sort of art?
Look at as much art as you can to decide what you're interested in
(not just on this site).
Here're a few good places to track some art down:
•Galleries
•Print studios
•Art fairs and festivals
•Art school graduate exhibitions
•Some restaurants, cafes, furniture retailers,
and so forth
•Art magazines
•Internet art sites
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What sort of artist?
Consider these points when you are assessing artists you are interested in.
•Where they have shown, how many shows, and
what sort
(Consider the importance of the venue)
•Publications about their work
(Consider the importance of the publication)
•Public, corporate and private collections they
are represented in
(Consider the importanceof the collection)
•Sales history
•Awards, grants and recognitions
•Art societies and related organizations they
belong to
•Qualifications: where they studied, when and
with whom
•Positions they hold and have held (teacher,
lecturer, director, etc.)
•Celebrity status
(Entertainers, criminals, sportspeople, etc, may be collectable simply because of
their status or noteriety. Be careful: extrinsic value of this sort tends to fade
with their celebrity.)
•Age details: living or dead, and stage of career
when the work was produced
(Familiarize yourself with any recognized period or style)
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What is your budget?
If you have a fixed budget (perhaps a gift certificate) or even if you don't,
you may like to consider the following:
•Keeping a record of prices of the sort of art
you like
•Gallery price lists (if they're not on display
don't be scared to ask for them)
•Asking someone you trust or paying for independent
advice
•Shipping, framing, tax and insurance costs
If you have decided that you're serious about building a long-term collection, then
calculate how much you can afford each year and put that amount aside. (You can
reassess this as your circumstances change.) Even if you don't buy expensive pieces,
one purchase a year over 20 years or more, will result in you having a very pleasing
collection.
Setting aside an amount that you know you can comfortably afford, say $500, means
that if you come across a piece you really fall in love with within that budget,
then you're in a position to make decisions with out seeking anyone's advice or
opinion. You can buy it on the spot, knowing you'll enjoy it for years to come regardless
of whether you ever get the $500 back or not.
However, if $1,000 is a large investment for you, then do seek advice and think
carefully before buying. A constant reminder hanging on the wall of a mistake you've
made, is not what you're after. If you've done your research, and you really like
what you've seen but can't afford to pay for the work in one hit, it's always worth
asking if you can pay in instalments. Many artists and galleries will be happy with
this arrangement.
Once you've set your budget, now is the time to consider whether to buy a major
piece, or several smaller pieces.
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Is it a significant work?
By establishing the sort of art that you are interested in, and the artist or artists
within that style that you most like, you will probably have looked at a reasonable
amount of art and will have instinctively begun comparing the works. This is the
best place to begin, by looking at as much art by the artist as possible.
What period?
Occasionally works from some periods of an artist's life are considered more important
than others, and the best works from the best periods will be more collectible.
Doing some research may help here, but this doesn't mean that these will be the
works that you will like the most – remember to buy works that you will enjoy
living with.
The artist's hand
Original works will generally be more important than prints and other mechanical
reproductions. This includes etchings, serigraphs, lithographs, photographs, and
digital techniques such as giclee, the production of all of which can be handed
over to art technicians, with the artist merely supplying the signature on the finished
work. Works generated entirely by the artists hand tend to be more valuable.
What quantity was produced?
The larger the edition, the less valuable a work tends to be with the ideal being
less than 30 to 50 works in an edition. The number in an edition is shown similarly
to a fraction with 14/50 meaning that this work is number 14 in an edition of 50.
There is no difference in value between the first and last work in an edition although
some collectors prefer low numbers but this is purely emotional.
Limited edition prints can be a good way to start a collection, although beware
of artists who put excessive prices on original works in order to make high priced
prints of the same work seem more reasonable. As a general rule, if an original
by an artist sells on average for $5,000, then a print from an editon of 10 should
cost about $500. (10 x $500 = $5,000) However, if it's an edition of 100 and the
prints are still $500 each, then you can consider them to be highly overpriced.
Sculptural editions such as bronzes and metallic resins tend to be small editions.
The value of an edition will increase when the last work of the edition is sold.
For editions comprised of a series of works, a complete edition will be more valuable
than the same number of individual works.
Is the work typical?
Determine whether the piece you are looking at is typical of the artist's work.
Artists tend to have themes and subjects that they frequently return to and develop
distinctive styles and techniques as they mature. Collectors tend to place a higher
value on pieces that are clear examples of a particular artist over works which
are less typical. That being said, many artists will produce copies or slight variations
of their more popular works which will be less valuable than the 'original' landmark
works.
Size and effort
The size and amount of work which has gone into a piece is also significant with
larger works using more materials tending to be more valuable, with complexity of
technique and obvious labour and effort also contributing to perceived value.
Creativity
The degree of creativity should also be taken into account, as collectors will value
artists who are uniquely creative, over those who produce works that are similar
to or which draw heavily from works that have been produced in the past.
Condition
The physical integrity of the work is also important, with a well kept piece being
preferable to one which is damaged, dirty or faded.
The story...
The final factor to consider is the life story of the work itself. If the art was
produced because of some significant event in the artist's life, or if there is
a story behind its creation, or if the work itself has had an interesting life since
its creation, then this can add to its value. Interwoven with this is provenance
which is the work's recorded chain of ownership and display which over time, can
have a major impact on the value of any art. To learn more about provenance click
here.
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What are your reasons?
•What do I want the art for
•Will I regret
not buying it
•Where will it go (and does it have any special
requirements)
•Do I like this work for itself or does it remind
me another work I can't afford
•Do I like this artist's work but not necessarily
this piece
•Do I want similar pieces or a variety
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What are the risks?