Selling your Art Investments
Many people are drawn to art investing for it cultural significance and diversity. It is difficult to show off your shares of Microsoft when guests visit your home, but they will almost always notice a gorgeous painting or thought-provoking sculpture. In recent years, art investing has become more mainstream than before, but still has not caught on to the masses just yet. This is because for every person that is intrigued by the idea, there are ten that see it as a way of getting stuck with an expensive piece they can't get rid of.
Selling artwork is decisively more difficult than buying it. As an investment, art is much less liquid than standard stocks or bonds. You cannot make a phone call and sell every painting you own. High priced art investing is not unlike property investing in that investors tend to take their time and examine their options. Just as you were discerning when you purchased the piece, your prospective buyer will want to know every detail of this item before they will think of handing their hard-earned money over to you.
There are certain things that you can do to make your art investments more desirable to prospective buyers. Simply put yourself in their shoes and ask what you would want a seller to say and do to make the process easier for you. Art investing, like any other type of investing, is a cat-and-mouse game where the buyer wants to get the price lower and the seller wants it higher. The common ground is usually the fair market value and will be the price at which both parties feel comfortable.
In order to ensure that your investments will retain their value and be easier to sell, it is important to care for them. Art investing is difficult enough if the pieces stay in pristine condition. You will have no chance of getting return on your investment if you do not maintain your collection. Paintings should be protected from dust and humidity. Sculptures should be shielded from environmental factors that will cause deterioration over time. No matter what medium, it is imperative to take the necessary precautions that will protect your art investments.
It is a good idea to keep current appraisals of all pieces in your art investing portfolio, not simply for those you are considering selling. Regular appraisals will help you keep track of your portfolio's net worth. Additionally, it will help you find out which items you would like to sell. If a particular part of your art investing portfolio has steadily declined in value over the past few years, but the value is still more than you paid, now might be an opportune time to sell.
There are several channels through which you can sell your artwork. Auction houses act as locations for a great deal of art investing and generally obtain a fair price for the pieces they auction off. A percentage of the selling price will be taken by the establishment, and if that amount turns your potential profit into a loss, it may not be the choice for you. Be sure to establish a reserve before placing your piece on the auction block. This is the very lowest price you would accept for your sale.
Often art galleries and dealers are the fastest way to sell your artwork. This may be particularly attractive if your art investing portfolio is performing badly and you are seeking to sell several pieces. The price your piece fetches from a dealer or gallery could be substantially less than market value, but is still money in the hand. If your goal is liquidation and your deadline is as soon as possible, this could be a smart move.
Often the best choice for buyer and a seller is a private party sale. A large amount of art investing goes on between private parties, and the sale price is often more reasonable for both parties. It is important to present a valid appraisal from an experienced appraiser when selling your piece. Don't be greedy, as you could end up turning the buyer off to your investment altogether. By treating a buyer the way you would want to be treated, art investing can be a pleasant experience for all those involved.
