There are two ways in which art is sold. Art is purchased by the gallery, then marked accordingly, or it is consigned by the artist where the gallery and artist split the sale. As a savvy buyer, you should ask whether the art is owned by the gallery, or on consignment.
Usually, if the artwork has been consigned there is no extra gallery mark-up for price negotiation. If the gallery owns the work, sometimes they may want to turn over inventory and one can negotiate a better price. Galleries normally do not overprice art, it is offered at the market value. It is not the same as buying a used car or a toaster.
HOW IS THE VALUE ESTABLISHED?
What most collectors want to know is whether or not the prices are fairly appraised market values.
Most importantly is:
1. Reputation of the artist. The value of art often comes down to who did it, what material was used, and when it was done. A Rembrant done in 1642 is worth LOTS more than the watercolor done by Aunt Emily yesterday.
2. Quality of the artwork. The quality of a particular work in relation to the output of the artist is important. On a scale of 1 to 10, where does THIS work stand? Is it from an important period? Does it show increased technical or compositional excellence? Always ask to see a biological write up on the artist, it provides information as to where the artist is at in his/her career.
3. Rarity. If most of the better work is in museums, private, or public collections, then the work will fetch a higher price. Is the artist working a medium that takes a pro-longed time to create? Like stone or metal sculpting. Is the artist still living so more work will be created, or deceased so that no further work will be created for the marketplace.
4. Fashion. Naturally, what is in demand is worth more. However, market hype does not constitute a reliable measure of value.
In summation, an oil painting that is of museum quality is obviously worth more than a mass produced poster print. And most often, the more well-known the artist, the more the art is worth. Do remember that famous artists can create bad work. Please don’t purchase just for a “signature”.
Whatever your strategy, most art professionals agree that you should only purchase what YOU like. If the value goes up, well then, you’ve made an intellegent investment.
THANKS IRS for the “LOOPHOLE”
Our US government has established a tax “loophole” that actually encourages donations of art to museums and non-profits. The only requirement is that you hold onto the artwork for a year and a day, and that it be donated to a qualified entity. This little gem of an investment vehicle is based upon a widely used tax law that permits an art “collector” to purchase art at a very low price, hold the art for the appropriate length of time, then donate it at the higher retail “fair market” value. You can pick up a piece of art from a newly emerging artist, hold it for five or six years, then when that artist’s retail prices have appreciated to much higher levels you can donate the artwork for the currently appraised value to a qualiflying non-profit…walking away with more in tax savings that you could possibly derive with an outright sale of the artwork!
There is so much more to talk about concerning art…but in the end..art concerns beauty, passion, drama, memories, and other intangibles. You buy art because of how it makes you feel, what it means to you on a personal level. The appreciation of art should always be a very personal and emotional experience.
WE at Turnbull Studios and Sculpture Garden would be happy to discuss more of this with you….go to turnbullstudios.org
I would like to thank Patrick at Hana Coast Gallery in elightening me with this subject.

created by Christine Turnbull from turnbullstudios.org