Private Air New York

www.privateairny.com Private Air New York | Spring 2015 30 ART T he art auction seasons beginning in May and November are exciting times for artists and art collectors alike. e bidding and sales are used as a means of assessing the market value of a particular piece and of a certain artist's work. As a collector, it is easy to get caught up in the excitement of auction season. e bidding process is really quite simple: the auctioneer announces a minimum price and starts the bidding. Bidders raise their paddles that display a number. ese numbers help the auctioneer keep track of who is bidding and at what price. e auctioneer will announce increases in price at regular intervals once the minimum has been met. Bidding will continue until there is one bidder left. e tricky part is often the speed at which this process takes place. As the bidding price escalates, it is important to keep a few other factors in mind. Michelle Impey suggestions for the collector who is attending an auction: First, Impey stresses that a collector consider all costs involved with a purchase. ese include: Commission: e auction house takes a commission, sometimes as much as 25 percent on top of the selling price. Taxes: Be aware of the tax rate in the state or nation where you are making the purchase as these can add considerably to the cost. Buyers Premium: e buyer's premium is a fee added to the hammer price at auction and paid by the winning bidder. At fine art auctions, the buyer's premium is generally in the 10 percent to 25 percent range. Used to cover administrative expenses, the fee is paid directly to the auction house. Framing: Note whether the piece needs to be framed or would require you to purchase a stand or a case in order to display it properly. ese details can add substantially to your purchase price. Insurance: Impey advises that you obtain an insurance policy that has automatic coverage for new acquisitions to your collections. is addition to your policy will cover your new pieces for up to 90 days after you make your winning bid. Impey also recommends you have a world-wide policy that will cover your acquisition in a vacation home or international office. Packing and shipping: Getting your new acquisition safely to your home or storage facility can be an expensive proposition as well. Consider these costs as you are monitoring your bid. Insuring your shipped artwork as it travels also adds to your costs. Impey notes that standard shipping liability coverage is only 30 cents to 60 cents per pound. e energy of the room during an auction and the sometime frenetic pace of bidding can be intimidating to a new collector. Many experts recommend that you attend an auction or two as an observer before you enter into the bidding process yourself. en do your research on the types of art you love, attend gallery and museum showings to familiarize yourself with a particular artist's work, or a particular style of art. Talk with other collectors and with art consultants about auction season to learn of the experiences and suggestions. Finally, set your budget, keep track of your costs, and buy what you love. GOING ONCE, GOING TWICE The excitement of bidding at an auction can quickly lead to a sad denouement if a buyer is not aware of the ways of bidding and the results that follow. Michelle Impey, fine art director of Fireman's Fund Insurance Company offers some tips for the savvy novice from an expert . By: Tricia Drevets

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