Maximising Profits: Where to Sell Investment Art
As I have mentioned before there are ways of avoiding the large fees usually charged by galleries and auction houses but different categories of artwork will require or be best suited to different selling outlets, some of which will be suited to being sold in a gallery or auction house. There are of course benefits to selling at a gallery or auction house otherwise no one would sell there so before you sell an artwork is important to consider the pros and cons of the different outlets for selling an artwork.
Now there are plenty of people who don’t really understand art investment who will use the fees charged for selling at auction or at a gallery as an excuse to not invest in art which, to be honest, is a completely irrational excuse. Why is it irrational, well, you pay money to a real estate agent to sell your house and you pay a broker to sell your shares so why should the art market be any different?.
Think for a moment why you would go through a real estate agent to sell your property and why you would go through a broker to sell your shares, its because you know that you are more likely to get a better price for your investment if you use someone who knows the market you are selling into, has access to a client base and knows how to maximise the selling potential. All this may seem obvious but there is a reason that at this point in time some people are viewing the costs associated with art investment as being more of an issue than they really are. The reason is that art investment is a relatively new concept to most people and for the first time people are viewing art as an alternative asset.
Real estate investment and stock market investment have been around for a long time so people know what to expect and they know how to plan and what fees to plan for. The same can’t be said for art investment so people are now wanting to sell their art to take advantage of the increased prices without knowing what to expect and without having had any sort of plan which causes people to be extra cautious, sceptical and overly critical of a market they don’t feel comfortable in.
As people become more familiar with art investment and the market becomes more and more transparent people will begin to focus more on the benefits of art investment instead of being overly critical. Back to the original topic of auction houses and galleries, it is easy to be overly critical of the service they provide although it is true that some are better than others but ill go more into that in the next post.
**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.