Art Investment Strategies: Choosing When To Sell
Before I go into detail about how to sell an artwork it is important firstly to decide whether or not it is the right time to sell. As art is a long term investment the current consensus is that you should be prepared to hold onto an artwork for 7-10 years minimum before you sell so keep this in mind when making a decision. Firstly you need to decide which category of seller you fit into so you can devise a selling strategy. The categories are:
1. Has to sell as in need of money
2. Would like to sell at a time when maximum profits can be achieved
3. Has specific profit percentage target and will sell as soon as target can be achieved
Category number one basically requires a strategy to maximise selling price and minimise fees which will I will go into in the next post but categories two and three require planning and assessment in order to be able to achieve your objectives.
There are many different events which can increase the value of an artwork which, unless you are an expert art market analyst, you are not going to be able to predict. It is for this reason that you need to track the progress of your investment and have objectives otherwise when these opportunities come up you will not have the information available to be able to make an informed decision as to whether taking advantage of that particular opportunity to sell meets your profit objectives. Keep in mind that there will be fees associated when selling an artwork so you need to factor these into your plan as well.
**Nicholas Forrest is an art market analyst, art critic and journalist based in Sydney, Australia. He is the founder of artmarketblog.com, writes the art column for the magazine Antiques and Collectables for Pleasure and Profit and contributes to many other publications.
- How Artists Can Get Noticed NOW !!! Update 7 June 08 – artmarketblog.com
- Art Market Blog – Collecting Artists' Books
- The Art Market Blog – Past, Present and Future
- Buying Affordable Art Online – Ten Awesome Online Art Galleries
- The Dangers of Wealth – A Tale of Two Art Investors