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Condition affects pricing
Why is one print by the same artist worth more than another?
One of the most important factors in determining the value of a print
is its condition. It is important to be aware of a print's condition before
making a purchase, comparing prices, or in evaluating auction results.
Print dealers and auction houses
Every dealer and auction house has a different standard of quality. At
Pace Prints and paceprints.com we strictly adhere to the highest museum
standards. If there is a legitimate reason to relax these standards on
a specific print we will indicate it. Because of the frequent variations
in the condition of prints being offered by dealers and auction houses,
there are often significant price differentials among dealers. Unfortunately,
it is impossible to determine by the published results the condition of
prints that were sold. Therefore, when there are major discrepancies between
gallery prices and auction results, one can be reasonably certain that
significantly lower prices reflect condition problems of the auctioned
print.
There is a whole hierarchy of value that compares one impression of an
image with another of the same image, with different images, and between
images of different artists. These factors are both objective and subjective.
They relate to the very basic concepts of art dealing and the art market.
For a basic overview, we have reproduced edited excerpts below from the
Collector's Guide of the Art Dealers Association of America (ADAA).
Art Dealers Association of America -- Collectors
Guide
The process of buying and selling art can be daunting. In order to help
new buyers and would-be collectors, we have provided below an abridged
Collectors Guide from the Art Dealers Association of America (ADAA) to
which Pace Prints belongs. We hope this will be a useful guide. If you
have further questions about buying and collecting art, please feel free
to contact us by e-mail or phone.
What to look for in a Work of Art
The key issues to consider when weighing a potential purchase are Quality,
Authenticity, Condition, Rarity, Provenance and Value. No one of these
points is sufficient to warrant overlooking the others. All factors should
figure in the decision, even if allowances are made in special cases.
For example, if a work is extremely rare, one may have to accept a less
than perfect state of preservation. But it would seem imprudent to buy
a readily available type of work in less than fine condition.
Quality - Experienced dealers and collectors agree that it is always advisable
to buy the best one can afford. The most effective way to develop an eye
for quality is to look at art, and no one looks at more art than a good
dealer. ADAA dealers are skilled at assessing the relative aesthetic merits
of a given work, evaluating it both within a larger context of art history
and within the specific context of the artist's oeuvre.
Authenticity - No one wants to buy a fake. Dealers who represent artists
or their estates automatically have access to primary source information
that can be used to authenticate works. A dealer with an extensive history
of handling a specific artist's work will also build up an archive of
information as well as a body of experience which can help resolve questions
of authorship and title. Many ADAA dealers can authenticate works in their
areas of specialization or make a referral to an appropriate expert.
Condition - The condition of a work is important, and a reputable dealer
will inform a prospective purchaser of any significant repairs and defects.
Because specialist dealers see a great many works in the areas they represent,
these dealers are uniquely qualified to assess the significance of conservation
or repairs such as cleaning, in painting, and lining. With some artists
or types of work, it may be impossible to find an example in pristine
condition. An ADAA dealer can interpret the importance of condition in
the context of an artist's oeuvre and make a considered judgment about
the impact of condition on a given work's value. In addition to counseling
on nuances of condition that a layperson would likely miss, a dealer can
advise on restoration or conservation. Dealers familiar with the work
of a particular artists or period can determine whether treatment should
be attempted, recommend a conservator with pertinent prior experience,
and give the restorer invaluable information regarding the techniques
and materials used by the artists. Inept restoration can impair value
even more than neglect.
Rarity - Although there are exceptions, rarity tends to enhance value.
The rarity of a given work is determined by how many similar examples
exist and how frequently such works become available for purchase. By
understanding a specific artist's oeuvre and by tracking the market, an
ADAA dealer is ideally poised to recognize the rarity of works that come
up for sale.
Provenance and Exhibition History - A good provenance can help establish
authenticity, art historical importance and title. Similarly, inclusion
in significant exhibitions may enhance a work's pedigree by documenting
it and certifying curatorial approval. However, the absence of a complete
provenance need not be a cause for alarm, provided the dealer is reputable.
For example, some modern prints and works on paper were until recently
deemed to be of little value and were therefore not fully documented.
Some fakes come with magnificent, but spurious, provenances. And sometimes,
an unwarranted premium is exacted for past ownership: celebrity sales
can yield spectacular prices that do not hold up over time. Again, an
ADAA dealer can help evaluate a specific provenance to determine its legitimacy
and significance.
Value - Particularly when prices are rising, the idea of "art as an investment"
gains credibility. However, collections assembled with the hope of financial
profit alone often prove to be poor investments. Collectors should be
wary of apparent bargains and promises of future gain. Art chosen solely
on the basis of price will yield a mediocre collection that does not necessarily
hold its value on resale, especially during economic downturns. It is
collections formed with passion and intelligence that stand the test of
time, both aesthetically and monetarily.
Tastes and market conditions change and values change accordingly. For
example, the academic art of the nineteenth century, in its day, far outpaced
in price the work of the contemporary Impressionists, only to be eclipsed
by the latter group as the twentieth century progressed. Today some of
these academic artists, seriously undervalued for years, are experiencing
resurgence. Although no one can predict the future, ADAA dealers are able
to place current prices in perspective.
What Do Dealers Do?
New collectors may be surprised to learn the range of services art dealers
offer:
Education - Art dealers enjoy sharing their knowledge and experience with
their clients. Regular discussions about gallery artists and related art
movement often occupy much of a dealer's time. Dealers also readily accompany
collectors to artists' studios, museums, art fairs, auctions and other
galleries in order to educate and inform their prospective and established
clients.
Publications - Many dealers regularly publish exhibition catalogues, monographs
and catalogues raisonnes, promoting scholarly research and critical understanding
in areas not always covered by commercial publications. A partial listing
of ADAA members' publications can be found in the "Catalogue Corner" of
the ADAA website, www.artdealers.org.
Curatorial Advice - Art dealers routinely encourage and collaborate in
the formation of collections, often helping their clients develop an overall
strategy and focus. Dealers also advise their clients about lending and
donating art, insurance, framing, conservation, cataloguing and many other
subjects of mutual interest. Museums and non-profit spaces commonly request
curatorial advice from dealers and ask for help in locating works that
institutions borrow for exhibition.
Sales and Resales - Buying a work of art from an ADAA dealer is often
the beginning of a long-term relationship. Art dealers not only help collectors
buy, but can also help clients sell works when the time comes to upgrade
or change the direction of a collection. It is always worth consulting
with the dealer who originally sold a work before reoffering it, since
dealers frequently keep track of requests for specific works on behalf
of clients. Dealers appreciate clients who turn to them when re-selling,
and are more likely to offer these collectors important works in the future.
Dealers consider previously sold works a "latent inventory" upon which
they may draw for subsequent sales.
Appraisals - Collectors rely on dealers' appraisals for a wide variety
of purposes, including charitable donations, insurance, tax, financial
and estate planning. Dealers not only evaluate works, but where appropriate
can offer advice on disposition. There are different types of appraisal,
many with special requirements. ADAA dealers are aware of these delicate
nuances and their years of experience make them particularly adept at
interpreting comparable sales, both private and public. Individual ADAA
member dealers provide all types of appraisals except those involving
museum donations, which are handled by the ADAA Appraisal Service.
How To Buy And Sell Through A Dealer
"Just looking" is perfectly acceptable in an art gallery as well as on
an art site. Dealers know that "just looking" at art is time well spent.
The best dealers are those with a genuine and profound passion for art.
They enjoy nothing more than talking about art with people who share their
passion. Today's novice collector is tomorrow's connoisseur, so dealers
consider time spent with beginners not only gratifying but an investment
in the future. Don't be afraid to engage a dealer in conversation about
an artist or work of art you admire, and ask questions. Acquiring a work
of art is a personal and genuinely rewarding experience, and clients can
profit considerably from a good on-going relationship with a dealer who
has their individual collecting interests in mind.
What's It Worth? - Many people think that auction results and Internet
price guides are sufficient to determine the value of a work of art, but
these guides rarely tell the whole story. The evaluation of a specific
work depends on numerous factors including quality; condition and evolving
market realities. A competent dealer can evaluate a work in the light
of recent sales, both public and private. A good dealer will explain how
a price was determined and why a given work may be worth more or less than
a seemingly similar example. ADAA dealers, who have years of experience
dealing in their areas of specialization, are especially qualified to
price works correctly and have a vested, long-term interest in maintaining
a stable market.
Why Sell To Or Through A Dealer - ADAA dealers have spent many years creating
a circle of collectors interested in their specialized fields. It is likely
that these dealers will have among their clients some who are interested
in buying the work you want to sell. A dealer will be able to begin marketing
a work from the time it is received, unlike auction houses, which must
sometimes wait six months for a suitable sale date. Sellers have more
control over the final price and conditions of sale when working with
a dealer than is possible at auction, in part because there is far less
time pressure. This lack of pressure allows for a measured and effective
interchange between the dealer, the seller and potential buyers. Dealers
protect sellers with confidentiality and comparative privacy, avoiding
the negative effects of exposure through auction catalogues. The information
that a particular lot has failed to sell at auction is as widely disseminated
as the catalogue itself, and this can have a negative effect on future
prospects for sale. With a dealer, a seller can always adjust the price
if the market changes or has initially been misread.
Consignment or Outright Sale - While dealers are not always interested
in buying works offered to them, chances are the seller will be given
the choice between outright sale and consignment. Outright sale is usually
the quickest method of disposing of art, but since the dealer must invest
capital without assurance of a quick resale, the amount offered will probably
be less than could be netted from a consignment. In the latter case, the
dealer works either on commission or with a minimum net price, and the
seller is paid when the work has been sold. The cost of selling through
dealers is generally comparable to or less than selling at auction and
a competent dealer is often able to obtain a more favorable net outcome
than would be possible at auction. In addition, dealers frequently absorb
costs, such as photography, catalogue illustration and insurance that
auction houses routinely charge to the seller.
Setting The Price - Whether selling at auction or through a dealer, setting
an unrealistic price is the surest way to spoil the chance of success.
To determine a fair value, ask the advice of a trusted dealer. It is a
good idea to get several informed opinions and check on prior auction
results. Ask the dealer to explain the valuation strategy. Bear in mind
that it is in the dealer's interest as much the seller's to achieve the
highest possible price, but that the market does have practical limits.
A transaction can only be completed with a willing buyer, a willing seller
and a price acceptable to both parties.
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