Buying Art...a Collector's Minefield

Note: I am not an Art Expert, and therefore I have included this article taken from a speech given by Alan Bamberger, originally delivered to an audience of art collectors at the Indianapolis Art Center. It covers a number of topics that are treated at length and in detail in his book, Buy Art Smarter.

Article reprinted here with the kind permission of Alan Bamberger, Artbusiness.com

Anyone can buy art smarter. No previous knowledge of the art business, experience collecting art, or degrees in art history are necessary. All you need is a love and appreciation of fine art, a desire to collect, and a willingness to learn a few simple techniques that will allow you to evaluate any work of art dating from any time period by any artist of any nationality.

Even though the following article contains specific recommendations and suggestions relating to particular works of art, keep in mind that there is no right or wrong art and there is no right or wrong way to buy art. Anyone can buy whatever art they feel like buying, wherever and whenever they feel like buying it, for whatever reason they decide to buy it, and for however much money they feel like spending on it. Consequently, "buy art smarter" techniques are not for everyone, but they are designed for people who like to spend their money wisely and who prefer to pay fair prices for quality art. If that happens to be you, then what you're about to read will help you to become a better collector.

Suppose you see a work of art for sale that you like-- a painting, a sculpture, a print-- it makes no difference. If you like it so much that you think you might want to own it, begin your decision-making process by asking and answering four basic questions.

(1) Who is the artist?

(2) How important is the art?

(3) What is its provenance, history, and documentation (or more simply, where has the art been and who's owned it)?

(4) Is the asking price fair?

For the answer to the first question-- "Who is the artist?"-- you rely on two basic sources of information-- spoken and written. The spoken part usually comes from the artist, dealer, or gallery who either represents or sells the art. Verbal information can also come from friends, collectors, and others who are familiar with the art or artist in question.

Written information comes in a variety of forms including gallery exhibit catalogues, artist career resumes, exhibition reviews, and art reference books like dictionaries of artists, art indexes, art or artist encyclopedias, monographs on artists, and art surveys or histories. In the great majority of cases, these publications (or photocopies of relevant artist listings contained in these publications) are available from whoever is selling the art.

In all cases, you want to both hear and read about the artist you're interested in. Do one at the expense of the other and you can easily come away with inaccurate or skewed ideas of how significant the artist really is. The types of information that you come across during the course of your readings and listenings, no matter what artist you are learning about, include facts like those listed below.

* The artist's birth date and death date (when applicable).

* Where the artist lives and works.

* Where, when and with whom the artist studied.

* Organizations the artist belongs to.

* Galleries, museums, or institutions where the artist has exhibited art either in one-person shows or in group shows with other artists.

* Awards, prizes, grants, and honors that the artist has received.

* Public, private, or corporate collectors who own the artist's art.

* Positions the artist has held (teacher, lecturer, writer, and so on)

* Publications that mention the artist such as books, catalogues, newspapers, magazines, and so on.

You use this information to make conclusions about the artist. You don't have to do anything scholarly here. You merely want to come away with a reasonable idea of who the artist is and how significant his or her accomplishments are. Knowing how to assess an artist's career becomes increasingly important the more expensive the art is that you're thinking about buying. The more art costs, the more respected and established the artist should be.

For example, would you buy $25,000 car off of a show room floor, no questions asked? Would you buy a $300,000 house by standing in the yard, looking at it, and deciding that it's exactly what you want? Of course not. You read about the car, ask people who own it how they like it, compare prices from dealer to dealer, and so on. You tour the house, carefully inspect every room, find out what kind of neighborhood it's in, have the house inspected by a contractor, and so on. In both cases, you want to know what you're getting before you spend your money and the same should be true for art. With a work of art, this process begins by evaluating basic facts about the artist like those mentioned above.

* The more books and catalogues that list, mention or discuss the artist, the better.

* The more significant the publications that include the artist, the more important the artist tends to be. A five-paragraph listing in a major international artist dictionary carries more weight than a similar length listing in a local artist directory.

* The more mentions the artist has in a given publication and the longer those mentions are, the better. An illustrated chapter about an artist is better than a chapter without illustrations is better than a paragraph is better than a sentence.

* The longer the artist has been creating and exhibiting art, the better. A 55 year old artist with accomplishments dating back 30 years tends to be more collectible than a 55 year old artist who's only having his second show.

* The greater the number of exhibits, awards, and other career accomplishments that the artist has, the better. Keep in mind that descriptive ramblings about an artist's majestic brush strokes or mastery of color may sound great, but flowery language is pretty much meaningless unless it includes factual information. Never confuse facts with fluff, and, in the art business, there's no shortage of fluff.

* The more significant the collections that own the artist's art, the more important the artist tends to be. When museums own the art, that's always a good sign; major corporate collections are generally good for an artist to be in; private collections only carry weight when the collectors are known and respected in the art community. A painting in the collection of the Countess Esmiralda of Stregovia, for example, may sound impressive, but the distinction is only significant if the Countess is recognized for the quality of her collection.

* Artist listings in scholarly, non-biased publications are preferred over those in commercial publications. Always be wary of books and catalogues published by special interests, no matter how lavish they may be. For instance, if you are shown a glamorous ten-pound coffee table book about an artist that's published by the gallery selling the art, but you don't find that artist listed in other standard art reference books, this could mean that the artist is considered famous and accomplished only at that gallery and nowhere else.

* The more people who recognize the artist's name and have good things to say, the better. The more qualified these people are and the more respected they are in the arts community, the more you should value their opinions, especially when they have nothing to gain if you buy the art.

Question number two-- "How important is the art?"-- is answered by looking at as much art by the artist as possible, familiarizing yourself with the range of that art, and learning how to compare the art you're interested in with other art by the artist.

Begin by having the seller show you a selection of the artist's art, either firsthand, in print, or from photographs, and from all periods in the artist's career. When that's not possible, find out where you can go to see this art. Knowing the full range of an artist's work helps you understand each individual piece in its proper context. This is why art galleries have shows and inventory multiple works of art by the artists they represent. The more pieces they have on hand to show you, the more they can teach you about the art.

Next, thoroughly inspect the art you're interested in. In addition to the front, look at the back, sides, edges, signatures, dates, any writing that's on them, any labels or stickers you find, frames, construction, everything. Have the seller explain all these details. This exercise is not only fascinating and educational, but it also gives you greater insight into what the art is all about and, incidentally, how much the seller knows about what he or she is selling.

Ask the seller whether the art is original or reproduced by mechanical means. This question is especially important with limited edition prints. Many limited edition "works of art" are little more than digital or photographic copies of originals that are produced not by the artists who sign them, but by commercial publishing companies. Believe it or not, many signed and numbered serigraphs, lithographs, and digital images like giclees, fall into this category. The only thing original about these "copy prints" are the hand-applied signatures.

Some publishers take reproductions to the extreme. New Erte editions, for example, continue to be released even though the artist died years ago. Now that's the sign of a great artist-- one who can still produce art even after he's dead. So remember-- when you're looking at a limited edition, always ask whether it's a reproduction or an original and get the answer in writing. If you happen to like the way an image looks and you don't mind that it's a copy print, go ahead and buy it. But if you want to collect original works of art, collect ones that are entirely created and produced by the artists themselves. Reproductions of originals, by the way, no matter how limited or beautiful they are, are among the least important and collectible examples of an artist's work.

Assuming the art you're interested in is original, find out whether it's "major" or "minor," that is, whether it's more or less significant when compared to other examples of the artist's art that you've been looking at. Is it closer to the most complex, detailed, labor-intensive, high-end pieces that the artist is capable of creating, or is it more like a two-minute pencil sketch done on a three-by-five card? Keep in mind that major pieces tend to be more valuable, more collectible, and fare better in the marketplace over time than minor ones.

Determine whether the art you like is "typical" or "atypical." Have the seller tell you which subjects, mediums, sizes, and styles the artist is best known for producing and that collectors prefer the most. These pieces are referred to as typical. All artists also experiment, go off on tangents, and create unusual or one-of-a-kind items that they're not that well-known for. These pieces are referred to as atypical. Unless you're a sophisticated collector who wants examples of everything that an artist has ever created or produced, stick with the typical and save the offbeat or unusual works for later.

Find out when in the artist's career your art dates from. All artists go through periods or phases where their art is more or less inspired, competent, appealing to collectors, and important in relation to their overall output. Experienced collectors, of course, prefer the best art from the best time periods. Learn what that means for your artist and how the art that you're looking at stacks up in comparison.

On a bit more of a sophisticated level, determine whether the art you're looking at has any unique original qualities or whether it's a re-do of styles or subject matters that have been produced over and over again for years. Some artists specialize in versions of art that's already been done because they're good at it, people like how it looks, and it sells well. One artist, for example, advertises himself as "a living artist who paints like a dead one." In other words, he highlights the fact that he paints like artists painted decades ago.

From a collecting standpoint, art with unique or original aspects tends to be more collectible over time than art that imitates or borrows heavily from other styles of art. Experienced collectors prefer buying works of art that reflect superior creative abilities. They patronize artists who continually evolve in their careers and dealers who represent those types of artists. If, however, you prefer art that copies famous styles of the past, then by all means collect it. Remember that there is no right or wrong art.

Lastly, make sure the art you're looking at is in good condition and built to last. I was once in a gallery that was showing an artist who does reverse paintings on glass. The paintings were beautiful, but would they last? I had the dealer show me several pieces from the back so that I could see whether the frames and backings were adequately shock resistant. I wouldn't want to buy one of these $5,000 pictures, accidentally bump it, and have it chip or crack because it's not well protected.

The answer to the third question-- "What is the art's provenance, history and documentation?"-- is determined by assembling all incidental information about the art. This is like writing the biography of the art from the moment the artist completed it right up to the present day.

You do this because good documentation and provenance increases a work of art's collectibility, desirability, and market value. Good provenance in the art world is similar to a good pedigree in the pet world. A painting that was exhibited at an important art show, for example, is more collectible than a similar looking painting that wasn't; a sculpture that won a prize is more desirable than a similar sculpture that didn't; a watercolor that made the news because of its controversial subject matter is more interesting than a similar watercolor that didn't. If art you are interested in possesses any such characteristics, you should know about it.

Begin by asking the seller to tell you everything he or she can about the art you like. Find out where it's been, what it represents, how it came into being, who's owned it, whether it's been exhibited, won awards, or been pictured or mentioned in any books, catalogues, articles, or reviews. Has it ever been discussed in print by experts or by the artist himself? Does it commemorate special events either within or outside of the artist's life? Are any interesting stories associated with it? These are the types of questions you should ask. The answers are often entertaining, enlightening, and just plain fun.

Whenever the art is by a living artist, ask the artist to tell you about it. If the art is for sale at a gallery and the artist isn't available, ask the dealer whether you can make an appointment to speak with the artist either in person or over the phone.

In addition to what people tell you, put together as much physical documentation as possible from printed sources such as those mentioned above. This includes copies or photocopies of entries in publications that mention the art, certificates or statements of authenticity, and, whenever possible, signed statements from the artist and/or dealer detailing what they've told you. The art is the picture; the documentation is the caption.

At all times, keep truth separated from fiction. Gossip, third-party suppositions, and hearsay do not qualify as provenance. Make sure that everything you're told actually happened. When a story cannot be conclusively proven with concrete tangible evidence, don't take it seriously.

Suppose you're thinking about buying a 19th century painting with a mountain in it. The dealer says he heard that Teddy Roosevelt's plumber's grandfather once owned it. He also says that the mountain is Mount Shasta and proves it by showing you photographs of the mountain taken from the same angle as is depicted in the painting. The first statement is conjecture and must be proved in order to be taken seriously; the second statement is fact.

And now for the biggie-- question number four-- "Is the asking price fair?" This is not so much a question of what the art might be worth at some point in the future or whether it's a good investment. Nobody has those answers. All you want to know is whether it's priced fairly today. This is a question that must be asked because, like any other goods or services, art is sometimes overpriced.

An artist or dealer may tell you that every piece of art is unique and that the price of the piece you're looking at is what it's worth, but that kind of logic doesn't wash with anyone who's been around the art business for any length of time. Art is like real estate in that an individual piece may indeed be unique, but plenty of other pieces are similar or comparable to it. Those comparables-- those similar houses in the same neighborhood, so to speak-- are what you look at when evaluating the price of the art that you're thinking about buying.

Contrary to what many people believe, art prices are not mysteriously pulled out of thin air or divined by some incomprehensible sixth sense that only artists and art dealers posses. Pricing a work of art is often no more complicated than measuring out a cup of flour. All you have to do is a little comparing and contrasting between your art and records of public and private sales of similar works of art that have already sold.

Of course, in order to do that, you must first realize that such records exist-- many people have no idea that they can actually research art prices from previous sales records. Not only do such price records exist, but they exist by the millions and the great majority of them of are published in art price guides, auction record compendiums, online art price databases, CD-ROMS, and art dealer catalogues at the rate of about 200,000 new sales results per year. You can find these sales records in the art departments of most major institutional and public libraries, on the Internet, at specialist art reference bookstores, and at most better art galleries.

Begin your price research with the seller. Ask to see recent sales results for art by whatever artist you're interested in. Make sure that the artist has a track record of selling works of art similar to the piece you like for amounts comparable to what you're being asked to pay. Most dealers have this information on file and will talk about it with you (be careful when any dealer is reluctant to discuss previous sales).

The other part of evaluating prices is to find out what's happening outside of the gallery or artist selling the art. Where else does the art sell and how much does it sell for. These sales usually take place at other galleries, at auctions, or at both, and, once again, you should look for consistency in selling prices that are comparable to what you're being asked to pay.

Checking auction records is easy-- anybody can do it. All you have to do is look up the artist's name in art price guides, books or CD-ROMS of auction records, or in online art price databases to see whether any of his or her art has sold. Each sales record you find tells you information like what type of art sold (painting, sculpture, etc.), it's size, title, when and where it sold, and how much it sold for.

When an artist has auction records, that indicates that the artist has achieved a certain level of recognition and respect within the art community and generally speaks well for that artist's market. Instead of collectors asking "Who's that?" when they see the artist's art, they say "I know who she is. Her art auctions for X amount of dollars, and I'd pay this much to own a piece of her art."

The most significant auction records for your purposes are those that describe works of art that are similar in size, subject matter, medium, date executed, and other particulars to yours. Keep in mind that auction prices represent wholesale values more so than retail ones, so don't expect them to be as high as what you're being asked to pay at a gallery. Do, however, expect them to be at least 40% of gallery retail and preferably higher. If you find auction records that are 30% or less of what you're being asked to pay, this may be cause for concern. Either the gallery owner should have a good explanation as to why the discrepancy is so large or you should consider shopping elsewhere. Several additional tips for evaluating auction records are as follows.

* Check back through at least five years of records and look for indications that the artist's prices either hold steady or increase over time. Consistent strength in selling prices means that demand for the art is solid and that the collector base is strong. Fluctuating, erratic, or declining prices are not generally a good sign.

* Pay the most attention to where the majority of the price results fall, not the minority. For example, if you're thinking about paying $10,000 for a painting and you find one auction record of $6,000 and twenty for under $2000, be careful. The $10,000 painting could likely be overpriced.

* The more auction results you find, the more accurately you can evaluate prices. One or two isolated sales are not enough to base any solid conclusions on; you need at least five to ten records to work from.

Retail sales at other galleries are just as important to know about as auction records and even more so when you have little or no auction records to go on. You can often learn about such sales by asking other dealers, collectors, and knowledgeable people in the arts community about the artist you are interested in. The more galleries that either handle the artist, recognize the name, or are willing to handle him, the better. Of course, their asking prices and sales records should be comparable to what you're being asked to pay. When few galleries are familiar with an artist or are interested in handling his or her art, this may not be a good sign.

When you buy directly from an artist who does not exhibit regularly, you often find few, if any, galleries that recognize the name and few, if any, auction records. In these cases, ask the artist for names of people or institutions that own his or her art and, once again, do your best to find out whether that art has sold for prices comparable to what you're being asked to pay. The more collectors who own the art and the more consistent the selling prices, the more comfortable you can feel about buying the art.

In cases where you have little or no auction or gallery prices to go on, you can extrapolate values from auction records and retail prices of similar art by other artists from the same geographical region who have similar accomplishments, similar market bases, and were or are active during similar time periods. Evaluating prices in this manner is another form of working from comparables. When you're buying from an artist, for example, find out what other artists who produce similar work and live in the same area charge for their art. When you're buying period art like an Indiana landscape by an Indiana artist dating from the 1940's, compare the asking price it to prices of other 1940's Indiana landscapes by other Indiana artists.

Once you're comfortable with an asking price and ready to buy, make sure you get a detailed receipt describing the art and its condition and including a money back guarantee to protect you if, at any point in the future, you find out that the art was not properly represented. This receipt should be in addition to all other documentation that the seller provides relating to the art's history, provenance, and authenticity.

A quick word about bargaining. Suppose for some reason that you still want the art after all's said and done, but would rather pay a little less for it. Art prices are often flexible and making an offer is certainly an option, but don't bargain purely the sake of sport. Make sure that you have a good reason for wanting a better price and that you can make a case for your request. Experienced collectors do this all the time. They know that dealers are much more likely to reduce prices based on good solid arguments than they are to lower prices just because buyers want better deals.

All this effort to buy a single piece of art may seem like tedium as you read about it, but, in fact, it's just the opposite. Buying art smarter not only becomes second nature; it also becomes an adventure. Once you get the hang of how things work, your quest for knowledge turns into exciting detective work, and so much of what you discover is always rewarding. Experienced collectors, which you may one day become, can research and evaluate most works of art in as little as fifteen to thirty minutes. For them, the importance of knowing about a work of art, including the fact that it's priced fairly, cannot be underestimated. Having this knowledge not only increases their enjoyment of that art, but also of the art world in general.

While you're still here, kindly indulge me while I engage in one last bit of shameless self promotion and remind you that my book, Buy Art Smarter, will be available for purchase by June of 2001. The book details everything you've just read and much, much more. Anyone can use it to buy art smarter just like the experienced collectors and fine arts professionals buy their art all the time.

Note: If you wish to read more about collecting Fine Art, visit Artbusiness.com

Alan Bamberger is an independent appraiser and consultant specializing in fine art, artist manuscript materials, art-related documents, and art reference books. He has been selling art since 1979 and rare and scholarly art reference books since 1982. He has been appraising and consulting since 1985. If you need a professional appraisal or wish to contact Mr. Bamberger click here.