Every collector, despite denial and procrastination, eventually faces the moment of selling a part or the entirety of their collection. Perhaps you have meticulously curated your collection over the years, seeking that final piece to perfect it. However, the lingering thought of 'you need to sell' often arises. The inevitable question of how to maximise the value of your collection follows. None of us want to see a lifetime of efforts undersold or hastily disposed of. We are avid seekers of glory and approval.
In a beautiful evening at Mishcon De Reya Charlotte Stewart, from MyARtBroker was joined by Christy Davis of Subdial and Eshita Kabra of By Rotation to explore the ‘Passion Assets: The secondary Market’. A new era, marked by the varied pace of young collectors, is emerging, introducing new assets to the radar of art collections. However, the question of duration lingers, as everything sadly has an expiration date.
If the duration for which collectors and investors retain their assets varies across different classes, how can you maximize the departure of your beloved goods? Selling art, akin to playing poker, requires a strategic approach. Therefore, understanding the different options available is crucial for maximising your financial outcome.
- Ensure you hold all the right cards in terms of authenticity and ownership. No transaction on a public market can occur if either of these factors is not 100% defined. Seek advice from experts if you are unsure.
- Timing is Everything: Just like in poker, knowing when to play your hand matters. The art market, too, has its cycles. Understand these cycles and be strategic about when you decide to sell. Certain themes or artists may be more in demand at specific times. Having said that think carefully about selling the whole collection as one sale or spread it across multiple platform/ auctions. Not everything is on demand at the same time.
- Expert Appraisal: Engage professional appraisers to get an accurate understanding of your collection's value. This not only helps you set realistic expectations but also positions you better during negotiations. Remember, having a keen eye on the market's pulse is vital.
- Diversification of Assets: Consider diversifying your sale across various platforms. Auction houses, private sales, and online platforms offer different advantages. The changing landscape of art transactions means newer, more flexible options may provide unique opportunities.
- Marketing and Presentation: Develop a compelling narrative around your collection. High-quality documentation, professional photographs, and a well-crafted story can significantly enhance perceived value. Marketing your collection strategically can attract the right buyers.
- Building Relationships: Establishing relationships with reputable galleries, auction houses, and buyers can open doors to exclusive opportunities. Long-term relationships can lead to favourable terms and better results when it comes to selling.
- Legal and Tax Implications: Understand the legal and tax implications of selling your collection. Seek advice to minimize tax burdens and navigate legal complexities. This foresight can protect your financial interests during and after the sale.
- Stay Informed: The art market is dynamic, influenced by global events, trends, and cultural shifts. Regularly update your knowledge about market trends and factors that may impact the value of your collection. Being well-informed positions you to make better decisions.
- Strategic Negotiation: Approach negotiations with a clear strategy. Be open to offers, but also know your bottom line. A strategic negotiator understands the market, the buyer, and has a well-defined plan for each transaction.
- Reinvestment Strategy: If parting with your collection is a strategic move, consider how you will reinvest the proceeds. Whether it is in other assets, new acquisitions, or alternative investments, having a clear reinvestment strategy ensures you make the most of the capital generated.
In the realm of art collection, the act of selling is an art in itself. By playing your cards right, understanding the nuances of the market, and employing strategic moves, you can maximise the value of your cherished collection.