Mon Sep 16 15:28:43 UTC 2024: ## Art Market Insider: Dealers Reveal the Secrets of Buying and Selling Artwork
The art market isn’t always as glamorous as it seems. While consignment is the common practice for selling art, some dealers, especially those dealing with older works or niche markets, are willing to purchase artwork outright. This offers a quicker, albeit less profitable, avenue for sellers needing immediate liquidity.
New York art dealer Jill Newhouse shared an anecdote of buying an 18th-century Italian painting from a young man for a modest price and immediately reselling it to a London gallery. This win-win situation showcases the potential for a quick sale, but also the lower return compared to consignment or auction.
While most galleries prefer consignment due to the inherent risks of purchasing artwork, some dealers, like SoHo gallery owner Susan Sheehan, specialize in buying outright. Her criteria for acquiring a piece involve personal affection and confidence in its market value.
Art advisors play a crucial role in navigating these options, considering both the seller’s needs (liquidity vs. maximum return) and the art’s characteristics within the current market.
Older art, like Old Masters or 19th-century pieces, tends to attract outright purchase offers from dealers due to their stable market appeal and longer-term value. This contrasts with contemporary art, where fluctuating trends make dealers hesitant to invest heavily.
Dealers specializing in older works, like Lawrence Steigrad and David Tunick, often purchase a significant portion of their inventory, offering sellers a lower but guaranteed price. They justify this practice by aiming for a substantial profit margin and ensuring quick turnover.
Debra Force, an American art dealer, emphasizes the importance of fair treatment, offering sellers a price that allows her to double her investment while acknowledging that consignment typically yields higher returns.
Ultimately, the choice between selling outright or consigning depends on the individual seller’s priorities: instant liquidity vs. maximizing profit. Understanding the art market’s nuances and the different strategies employed by dealers can empower sellers to make informed decisions about their valuable artworks.
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