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Costs of Reselling Art

Costs Can Be High at Times

The Costs of Reselling Fine Art

Art investment has recently become a hot topic.

Some experts feel that in today’s uncertain economic times, investing in fine art may be a better long-term solution than investing in stocks and other unpredictable investment solutions. However, art should generally be considered a slow-growth investment.

It is still relatively rare to achieve a significant profit on a quick turnaround.

A large part of the reason for this is the cost involved in reselling art. Provided here is a brief overview of this issue.

Commissions

As an individual seller, it can be difficult to connect with those who might be interested in your piece.

Therefore, you will likely will have to go through an art gallery or dealer.

However, these houses tend to charge large commissions on purchases.

You will most likely pay the same percentage that a commissioned artist pays, which is often in the neighborhood of 40%.

Therefore, if you paid $100 for a piece that is now worth $1000, you will not make a $900 profit. Instead, your profit might be closer to $500.

Contemporary Preferences

If the piece that you are hoping to resell was created by a contemporary artist, you may find it difficult to sell the piece at all. This is due to the unique relationships that develop between artist and dealer.

Most dealers and galleries prefer to work directly with artists. They may commission specific pieces or design a promotional theme around the artist’s current phase.

Additionally, the art world tends to be quite social.

Many galleries and dealers enjoy the social relationships that they develop with their artists. This helps them to remain a thriving part of the relatively closed art community.

Solutions and Alternatives

Certainly it is not impossible to resell fine art, crafts and handmade jewelry.

If the artist is no longer actively working, then you will not need to contend with the artist’s personal relationship with galleries and dealers.

Some houses like to build relationships with independent collectors rather than relying solely on buyers and estate sales.

The internet has also become a boon to individual buyers and sellers of fine art.

Joining online forums and communities of art collectors can help you to find those who may be interested in purchasing your item.

Most collectors today are aware of the dangers of purchasing high dollar items online.

If you plan to independently sell your fine art, it is important to produce documentation.

A professional appraisal should be performed.

You can also have a professional search run on the item’s history, in order to prove that it was not stolen or altered.

Finally, you may want to provide potential buyers a copy of your purchase receipt, to help assure them that you are not selling stolen art.

The Bottom Line

Reselling art can carry a high price tag. Galleries and dealers may charge a significant commission.

Individual buyers may request paperwork that is relatively expensive to obtain.

If you are interested in reselling a piece of fine art, it is important to research the costs of various options in order to find the solution that is best for you.

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