How to approach selling art to a collector

Some art collectors enjoy a bargain purchase. 

We spoke to an art collector and appraiser who bought a silver platter at an art auction for $45. After some research, the collector discovered how much it was really worth and sold the dish for $12,000.

Perhaps you've developed a new focus for your collection and are looking to sell art that no longer matches your aesthetic. Maybe you're giving up your art storage space to make your asset collection seem more reasonable.

Either way, your first step to selling your art is to make it “retail ready.”

It's time to complete the necessary documentation. This includes provenance documents, artist name, materials used, recent appraisal, and dimensions that can be exported from your collection's inventory. The dealer or auction house will use this information to determine promotion costs and commissions. These documents will also determine the procedure for filing a tax return.

With all the relevant paperwork in hand, you can start looking for potential buyers and learning about the process of selling art. 

Then choose an audience that will understand the value of your work.

1. Find potential buyers

If possible, start with the artist or the place where you bought the piece. These resources most likely contain advice on who might be an interested buyer. The original seller may be interested in buying back the work for resale. In some scenarios, the gallery will list the work for resale, which means you are still the owner if it is not for sale. If so, you should work with them on the most efficient and enticing display. Get detailed information about how the item will be sold or made available to potential buyers. Whether you're selling through an auction house or a gallery, the commission should be set up for you right from the start so that you have a clear idea of ​​the possible rate of return.

2. Sell through the auction house

Dealing with an auction house is another option if you agree that they charge a commission. The seller's commission is from 20 to 30 percent.  

Find a well-connected auction house that is willing to work with you. They should answer your questions and inform you about high and low seasons for their company.

Here are a few more points to keep in mind:

• You can negotiate with their auction house for a quantity that is convenient for you.

• Work with them for a fair selling price. You want to be happy with this number and also make sure it's not too high, which could scare away potential buyers.

• You also want to make sure your insurance company knows and your policy is up to date in case of damage.

• Confirm shipping restrictions to prevent damage.

• Read the contract carefully and consider having your lawyer review it.

3. Sell in the gallery

As with auction houses, you want to enjoy your gallery experience. These people are selling your art and the best way to prove they have top notch customer service is to visit them first. Make sure you are met at the door and treated well from the start.

Make sure the gallery is suitable for your work, considering their current collection and prices. You can work with an art consultant to find the best art gallery that suits your requirements.

Once you have found a suitable art gallery, you can either go through the online application process or in person. If the gallery accepts new artwork, they will either buy the artwork right away or hang it on the wall until it is sold. Galleries usually take a set commission for the work sold. In some cases, they lower the commission but charge a monthly fee for the artwork on their walls.

4. Understanding the contract

When selling your art through a gallery or auction house, make sure you answer the following questions so you understand the contract:

• Where will the art be presented?

• When will you be notified of the sale?

• When and how will you be paid?

• Can the contract be terminated?

• Who is responsible for the damages?

5. Choosing the right supplier

If you enjoy working with a supplier and they have good customer service, it is likely that they will treat potential buyers the same way. Selling art is a great way to keep your collection dynamic and make contacts in the art world. Whether you choose an auction house or a gallery, keep asking questions until you feel informed and satisfied.

Find out when working with an art appraiser can help the sales process go more smoothly. Download our free e-book for more helpful tips.