There’s liking art, i.e., those vague, positive feelings you have towards the idea of visual art, and then there’s collecting art. This is usually a much more daunting idea to face. For those who’ve felt outside of the art world, the little bit of exposure folks tend to have is the news of some piece of art selling for millions of dollars at an auction. Or they remember going into a museum or gallery and not understanding what they’re looking at on the walls. But, hey, everyone else seemed to think this was “good” so, yeah.
But art doesn’t have to be so foreboding. Know going in that those million-dollar sales are at the far end of the spectrum. If you want to start collecting art, there’s a way to do it on any budget. Literally.
That said, let’s put budget aside for a moment. If you’re seriously exploring building an art collection, what are some important first steps? Here’s what I suggest:
See as much art as possible
How will you know what to collect if you don’t have a sense of 1) what’s out there and 2) what you like and don’t like? This phase is about sharpening your eye. It’s impossible to think about a collection if you have no idea of what “good”, “interesting”, and “beautiful” look like to you. This last part is important because there’s a level of subjectivity involved in collecting. It’s not that there are no objective standards, but in the end, so much of what you’re going to collect comes down to what appeals to you i.e., your taste. Seeing as much art as possible helps you hone and raise your taste level.
Do your reading and research
Just as you wouldn’t start buying stocks because you opened an E*trade account, you shouldn’t immediately start buying art after having seen a few shows. Unlike stocks, which can be sold in a few clicks, unloading art is a multi-step process, and certainly, there’s no guarantee that you’ll recoup anywhere near your initial investment. So it pays to get some grounding in the art world and the business of art before you jump in with your Venmo at the ready. Know what to expect in terms of generally accepted industry practices.
What types of art and artists do you want in your collection?
Some collectors are attracted to certain styles. Some are focused on types of artists (male, female, Black, Brown, artists from the Global South, LGBTQ). Some are focused on disciplines (painting vs. sculpture vs. photography). These are all things to consider, as they’ll help focus your viewing and, ultimately, what you’re buying.
What space are you working with?
It’s assumed that emerging collectors will be buying art that will be displayed in their homes. Where is it going to go? How much free space do you have? If you already have a lot of art–and not a lot of space–will you consider a storage facility of some kind for your art? If you’re just beginning your collecting journey, you may have a limited amount of space. That might, for example, dictate focusing on smaller pieces.
Consider prints
Do you like a mid-career or an established artist’s particular work on canvas, but balk at the price? Consider identifying work by that artist that’s in print form. These are reproductions of work on canvas in poster form. The difference between prints and regular posters is that these reproductions are done on archival paper (for longevity), are part of a limited run, and are numbered and signed by the artist. You can expect that they will accrue in value over time just like works on canvas. The benefit to emerging collectors is that they represent a more accessible starting price point. Of course, you’ll need to factor in the cost of proper framing for the print you’ve purchased, so keep that in mind. I had the good fortune to meet someone who’s built a nice collection over the last five or so years based mostly on prints.
Are you and your partner on the same page about art collecting?
This may be obvious, but it should be said: If you live with someone, you might want to make sure they understand and are (relatively speaking) aligned with what you’re looking for in the art that you’ll buy. Remember: You both have to live in that space with the art you’re going to hang, so you both need to generally agree on what it is you’ll be bringing into the home. One collector I recently met told me that she and her partner have an agreement: Once a year, he can buy whatever he wants. The rest of the time, art purchases need to be a joint decision. You never want to surprise your partner.
Figure out a budget and stick to it
How should you spend in a world in which price isn’t necessarily an indicator of quality? It very much comes down to your financial situation. A gallerist recently shared what I think is a good rule of thumb for starting art collectors: Try to set aside 3-5% of your annual income for art buying for the year. So, if you’re someone who makes $150,000 a year, that’s $4,500-$7,500 for buying art. Also be clear that your budget should also be inclusive of other expenses related to the art: Shipping, framing, advisor’s fees, and art installation would be included here. Emerging collectors can avoid some of those fees by buying locally and buying art that you can easily put in your car, get it in your home, and hang yourself.
Another way to buy art
This is a follow-on to the above: If you have a limited budget and still want to invest in art, you can explore fractional ownership of artworks through a site like Masterworks. This site, among others, allows you to own a piece of a work of art, and when it sells, you receive a portion of the upside. The downside is that you don’t physically have the artwork.
A word about art advisors
Art advisors help collectors build and manage their collections. They can be invaluable resources because it’s the job of folks like me to see art, develop relationships with artists and galleries, and help collectors create a plan to achieve their collecting goals. Art advisors work on behalf of their collectors. As a result, it’s the collector who pays the advisor for his or her services. That fee is typically 20% 5%-20% on top of the purchase price of any work that’s bought with the help of the advisor. It’s not uncommon to find advisors charging 20% for purchases of $5 million and under, with a sliding scale for prices above that. As collectors become more established, they sometimes hire an advisor to work on retainer for them.
A final word for now
Remember that you should be in it for the long term. There’s no need to quickly build a collection just to say you have one. Give yourself time to allow your eye, knowledge of the art world, and your interests to evolve. In this way, you will build a collection that you’re proud of, one that grows in value, and becomes an asset that you can pass along to the next generation of your family.
Be sure to check out this page of Resources for New Collectors.
