Taking the Emotion Out of Art Acquisition: A Guide to Making Informed Purchases

When it comes to acquiring art, it's natural to let emotions play a role in the decision-making process. However, if you're looking to purchase art as an investment, it's essential to separate your emotional attachment from the practical considerations.

Conducting thorough due diligence is crucial to making an informed purchase. Before you fall in love with a piece, make sure to assess its value based on a set of objective criteria. This will help you determine whether the artwork is a worthwhile investment opportunity.

Here are the key quality criteria to consider when evaluating a piece of art:

1. Artist: Research the artist's background, auction history, and gallery representation. Check if their work is featured in museum holdings and if they have participated in notable exhibitions.
2. Medium: Original works like oil on canvas, watercolor, or ink-on-paper tend to appreciate in value over time. Be cautious of prints, considering edition size and quality.
3. Size: Smaller works may have limited growth potential, while pieces between 16 inches and 40 inches are often the most desirable. However, some contemporary artists may consistently work in larger sizes.
4. Subject Matter: The subject matter of a piece can significantly impact its value. For example, a Warhol Campbell's Soup Can is more valuable than a portrait of an unknown figure.
5. Rarity: Fresh-to-market works or rare editions can command higher prices.
6. Provenance: A piece's provenance, including exhibition history and notable owners, can increase its value and authenticity.
7. Sales History: Verify the sales price at auction, and be wary of dealers who acquire unsold works at discounted prices.

By considering these criteria, you'll be better equipped to negotiate a fair price and make an informed decision about your purchase. Knowledge is power in the art world, and having a thorough understanding of these factors can save you up to 20% on a work of art.

After acquiring a piece, it's essential to consider additional factors that can impact your bottom line and cost basis. For example, storing the artwork in states with no sales tax, such as Oregon or Delaware, can help you avoid unnecessary costs. Developing a "use" strategy for the artwork can also help you avoid use tax.

Remember, while it's natural to be drawn to a piece of art emotionally, it's crucial to separate your emotions from the decision-making process. Conduct your due diligence, and make an informed purchase based on objective criteria.