Appraise before you Raise

One of the surprising upsides to this year’s pandemic is that more fine art collectors can “buy with their eyes,” leveling the playing field for non-insiders and new collectors. With easier access to more options, there are more opportunities to spend money. So, today’s collector needs to take the right steps to make sure their money is making the right investment in art. Because that’s what your collection is; an investment.  With your money at risk, why would you ever go into an auction or art gallery purchase without doing at least some cursory homework first?
 
Getting an appraisal before an art purchase is a crucial step towards making a smart investment in art, but it’s just one step, and it should be among the first steps you take.

Budget and Taste
Before you get an appraisal for any piece you may bid on, you need to establish your budget. What’s the maximum amount you are willing to spend on any given piece or any lot of pieces? Even though you don’t need to have millions of dollars to make your first investment, getting your head around the going rates of artists and works you like will help you prepare for an auction.
 
You will also want to consider your personal taste. Which sort of aesthetics do you find pleasing? What sort of artist do you want to support? As the canon of great art is reconsidered and made more inclusive, you may be inclined to support artists based on their cultural or geographical identities. Of course, one’s taste is subjective, and your own pleasure is one of the main values of investing.
 
Many fine art appraisers also do art consultation work. Similarly, as you would with a financial advisor, you can discuss your budget, goals, and preferences with an art consultant who can help you narrow down your options for which artists’ works, or event types of work, you would like to invest in.

Working with an Appraiser
Once you’ve established your budget and tastes, an appraiser will help you research more artists that fit your preferences. They can also give you an idea of the right sort of venues to find the artwork to suit your tastes. 
 
In some cases, a fine arts gallery may actually be a better option for you than an auction. For instance, if a particular artist is experiencing a dip in demand, you might find that the best deals for their work can be found at an auction, whereas gallery prices are fairly stable, even when an artist goes through a slump. Auctions will typically start at a price that is below the expected final sales price. So, if the artist isn’t particularly popular, or if the auction isn’t well-attended, you can expect to find a great deal.
 
Conversely, auctions do run on adrenaline, particularly when they are well-attended and featuring valuable artwork. So, having realistic expectations for how much you should spend can keep you from getting caught up in the excitement.
 
What if you Win?
​Hopefully, you’ve got a firm grasp on how much you can spend and how much you should spend, and you’ve ended the auction with one or more new pieces for your burgeoning collection. Congratulations! Now what?
 
Now that you’ve actually got the piece, and it’s not just a hypothetical, it’s time for another appraisal. We’ll determine the replacement value so that you can have it insured for any possible future damages or loss. And as the monetary value changes over time, you will have a baseline from which to calculate the return on your initial investment. 
 
Whether you’re preparing to attend your first or fortieth auction, I can help you set yourself up to be a smart fine arts investor before you even make your first bid. Contact us today at [email protected].