How to Make Money in Art?

Its seems that every one is watching their pennies more carefully than ever the days.

Buying art is not that difficult. It’s really about educating yourself, and sticking to your budget.

One of the best ways is to educate your self by visiting art fairs, galleries and museums.

Familiarize yourself with various periods, styles, and mediums, by
talking to other collectors and artists.

Open your self up to new things and figure out what type of art you like, but the best way is to see a lot of art.

The art world can be overwhelming at times and one of the best ways is to learn a thing or two about the industry itself.

The artist creates the art. Sells it to the Gallery or put on consignment; where the artist and the Gallery establish a selling price. However, the Gallery, listed price is not always the sale price. .

Galleries often give discounts to collectors. especially if they indicate they want to make several purchases or perhaps the gallery is interested in developing a relationship with a new prospect.

When purchasing from a gallery, there is never any harm in asking, “Is that your best price?”

Another way to get a feel is to attend art auctions to learn about value, the periods, styles, and, importantly, what you like.
But don’t get caught up in the heated energy of the room and the rapid-fire bidding or you blow your budget.

Speak to as many experts as possible but remember every one has there own view and it up to you. You become the expert as you weave your way through your first time purchase.

One more thing before you decided on the purchase. Ask yourself this question.

What kind of art do you want to purchase.

Some buyers believe that buying a mediocre painting is better than buying of a great print or its better to buy mediocre painting rather than a great drawing.

Are you looking for a piece to decorate your home or is this going to be an investment piece?

If you think you can find a bargain from an outdoor art show, for your decor at your home, you are on the right trail, but it’s unlikely that you’ll find an investment piece.

So what is the budget for an investment piece? It’s a wide range but expect to spend from $1,000 to $5,000 for an up an coming artist’s.

On the other hand, if the sky has no limit and you looking between spend $200,000-$750,000 for an investment you may try an auction house.

From the auction house’s point of view they are looking to make commissions.

The are trying convince consignors to accept the lowest reserve possible bid giving the buyer a lower buy in.

Lets look in the previous example of $200,000–$750,000.

If you are the seller and your painting has a reserve of $500,000 and the bid is stalled at $400,000 you may consider lower your reserve bid to move the painting.

On the other hand if your the buyer, lowing the reserve make it easier for the purchase.

Let assume the painting passes at $400,000 mark but the reserved is at $500,000. If the bidding stalled, chances are the the auction house will take offers for it after the sale.

Almost there …what else should you consider.

Remember galleries usually work on a 50-50 split with artists they represent.

Which means commissions are negotiable and sometime 10 per cent off to at least 20 percent off are on the table with a little bit of negotiating.

Right now, many galleries are hurting, but so are their artists.

Do not let a gallery owner make a statement “This deal is gone after today.”

No deal is gone…. there is alway tomorrow.

The point is, if you don’t ask for 20 percent discount you will never get it.

For the best kind of investment, consider looking into emerging art. New artist are sometimes older artists who are forced to put off their art careers because of growing families. Older artists have more time to develop their skills.

But the best part, older artists are cheaper and have a great potential for increasing in value, leading to future gains.

Or is it better to buy after an artist has died. For the most part, most art actually go down in value. And the reason is that family,
dealers and collectors are looking to get rid as soon as possible.

Not all art is created equal; decorative pieces with less impressive names can be great, but they are often more expensive and do not appreciate long-term.

You know what you want and its time to buy.

Buy what you love. Trust your heart.

Is bigger better. Perhaps not.

Oversize paintings become problem to potential buyers because of the wall space limitation. If you have the space , you could fit with two or more pieces…unless you are a gallery but then the same thing applies.

One more thing .

Be confident in your purchase. Always remember it’s important to try to see the piece of art you are considering in person. Things look different if it from a photograph or jpeg.

The last thing.

Keep everything …all receipts, documents, shipping and insurance costs, etc.

Remember art is an investment.