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Even the most seasoned art collectors started out as wide-eyed first-time buyers once. If you’re considering joining them, you have some things to think about.
Don’t stress too much. Buying art is supposed to be fun. And it is — if you can keep these pointers in mind.
1. Fine Art Doesn’t Appreciate in a Straight Line
As fine art collector Lorenzo Bonfiglio says, art is something “you can appreciate as it appreciates” in value.
Just don’t expect your art to appreciate in a straight line. Like any other investment, art can lose or gain value. It’s not uncommon for people to sell a given piece of art for less than they bought it for.
That shouldn’t stop you from buying in the first place. Sure, many art buyers see their collection as an investment above all else, but art is meant to be enjoyed, too — appreciated, to use Bonfiglio’s word.
Just as you might spend top dollar on a new kitchen or bonus room above the garage, buying art is a door to years of enjoyment. And the fact that art is meant to be enjoyed contributes to its value in a very meaningful way.
2. The Art Market Isn’t Like the Stock Market
The U.S. Securities and Exchange Commission defines liquidity as “how easily or quickly a security can be bought or sold in a secondary market.”
Liquid assets are easy to buy and sell. You can offload them quickly, and without paying high transaction costs. Illiquid assets are harder to buy and sell. They take longer to get rid of and often cost more to do so.
Why are we defining investment terms in an article about buying art? Because whenever you buy something valuable — be it a house, a car, or a piece of fine art — you should be thinking ahead to how you’ll dispose of it if the need arises.
You can probably see where this is going. Unlike stocks or cash in the bank, fine art is an illiquid asset. You can sell any given piece of fine art, but it’ll take effort and money. To get the most out of the sale, you’ll need to work through an intermediary who understands the art market, and who takes a cut of the sale price for their work. It’s not all that different from hiring a real estate agent to help sell your house, but it does complicate things a bit.
3. You Can Find Art Everywhere
Art might not be a breeze to buy and sell, but that doesn’t mean it’s scarce. You can find fine art everywhere, from your friendly neighborhood gallery, to digital auction marketplaces, to the quirky cafe across town where every wall hanging has a price tag.
You’ll find different types of art in each place. If you’re just looking for an appealing painting or small sculpture and don’t care about provenance or artist reputation, those wall hangings will probably do just fine, and you’ll most likely support a local artist when you buy. On the other hand, if you’re looking for a piece that’s very special or more likely to appreciate over time, talk to a professional gallerist.
4. Commissioned Art Costs More (But Could Be Worth It)
Did you know you can hire an artist to create custom artwork specially for you?
It’s true. But it’ll cost you.
Original art doesn’t come cheap. Over time, you might develop productive relationships with artists and reduce your cost per piece, but that kind of arrangement might not be on the table for your first purchase.
In the end, your budget might be the deciding factor. You should consider whether a commissioned artwork (as it’s known in artworld-speak) will appreciate better than an “off the shelf” alternative, though. Art experts like Aasit Shah think so.
5. You Might Need to Redecorate
Here’s a pro tip many first-time art buyers don’t consider: The best time to buy a new piece of art is when you’re moving to a new place.
The second best time, for what it’s worth, is when you’re renovating or redecorating your current home.
Art enthusiasts like to fit their spaces to their art collection, not the other way around. While you don’t have to follow their lead, you can probably see the appeal in doing this. Especially if you have your eye on a bigger or bulkier piece of art that could take up a lot of space indoors.
If you’re stuck, talk to your gallerist, an interior designer, or an art expert who specializes in “spatial curation.” And remember, while the idea of decorating around a piece of art might seem daunting, it’s something you only have to do once in a long while.
6. Be Cautious of Digital Art
Digital artwork was all the rage a few years ago. Today, basically no one talks about it anymore. Collectors who bought at the height of the craze lost a lot of money, way more than folks who bought traditional artwork at the same time. This isn’t to say you should avoid digital artwork at all costs; you should just be realistic about its appreciation potential.
7. Beauty Is in the Eye of the Beholder
Lastly, and most importantly, don’t let anyone tell you what is or isn’t art. Don’t let anyone tell you what art you can and can’t buy, either. Buying art is a personal journey, so trust your gut.
And don’t let anyone influence your decision? Well, not exactly. Just the art museum is better with friends who appreciate fine art, buying art for your home or office is better with people who enjoy the process. It’s always nice to have a sounding board or a second opinion for important purchases.
Don’t let the opinions of others define your search, though. Not even the professionals you might hire along the way.
Anyone Can Be an Art Collector…Even You!
If it’s not already clear, anyone — anyone! — can collect art. Yes, even you.
Sure, truly amazing art doesn’t come cheap. The works that immediately come to mind when we hear the words “fine art” are worth millions. A rare few, like the Mona Lisa, are essentially priceless. How can you value something that inspires such depth of feeling in so many?
But even if your net worth isn’t equal to the GDP of a small country, even if you can only afford those cafe wall hangings that no one else seems to want, that’s OK. Every art collector begins somewhere. If you appreciate passion and creativity, you have what it takes to begin the journey.
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