Investing In Art At Auctions
Large,
established art auction houses have
the upper hand when it comes to
selling and auctioning off large
ticket and noteworthy pieces. The
prestige and promise of a huge
payday are too much for most
connected
to these auction houses to resist.
Although large name auctioneers tend
to get most attention, privately
owned businesses are making most of
the sales overall.
Going online or searching the local
phones books could yield a lot of
results when an art investor is
looking for an auction house to
invest in. Actually choosing an
auction to use for investing in can
be a little overwhelming. Before
deciding on one house or another,
it's important to contact that
auction house and ask about the
pieces that
are up for auction. Also asking
about their procedures and auctions
rules would be helpful so that there
are no surprises.
After an
auction house is chosen, it's
important to realize that the
investor, especially the new
investor is at a disadvantage
because auctioneers tend to stack
the deck in their favor. Some large
auction houses as well as small have
been cited for practices like price
fixing, which artificially inflates
the price of artwork.
Another example of auction's unfair
business practices would be the
placement of phony bidders in the
auction house. The purpose of these
people is to drive of the price of
the bids by bidding against
legitimate investors. This practice
is widely known and not exclusive to
live auction houses but online
auctions as well.
As far as overall value is
concerned, the buyers in auction
houses usually are being given a
fair market value. The only extras
that will be added on to the final
bid would be auction fees. Since a
seller usually prices the item a
wholesale prices to begin with, the
bidder, or art investor is usually
paying less than they would on the
free
market.
Before investing in art at an
auction, it might be a good idea not
only to research the value of the
items wanted, but attending an
auction at the same house to get a
feel for the bidding pace. Usually,
auctioneers sell at a quick pace and
getting carried away with a bid can
be quite easy. However, in some
smaller auction houses, a lot of the
merchandise is sold in a lot or
grouped together. This fact allows
art investors to purchase some
artwork for pennies on a dollar.
Investing in art through auction can
be both a challenge and a rewarding
experience. If the buyer does their
homework by learning the art's worth
ahead of time and the auction
houses' rule and procedures,
they can walk away with a great
piece or pieces for a good price.
The most important thing to remember
when investing in art in general is
that the art is only worth as much
as buyers are willing to pay.
Therefore, if an auction house
doesn't have many bidders looking to
acquire a certain piece, chances are
the investors will get a better
deal. Auction houses online and live
large and small are in the
business of making a profit. It's
important to prepare so that the
investment the buyer makes is worth
the while. |