Beyond the primary experience of acquiring art directly from artists or their galleries lies the vast and dynamic secondary art market. This is where artworks re-enter the marketplace, changing hands between collectors, institutions, and dealers. Navigating this world of art auctions and resale can be exciting, offering access to historical pieces and sought-after artists, but it requires knowledge, diligence, and a strategic approach. This guide provides insights for collectors looking to explore this complex terrain.
Understanding this distinction is fundamental:
Primary Market: This is the
first sale of a new artwork. Typically, you buy directly from the
artist or the
gallery that represents them. When you acquire pieces from contemporary artists, like those featured at the
Zen Museum Store, you are participating in the primary market. This market supports living artists directly. See more on
how to buy art.
Secondary Market: This involves the resale of artworks that have been previously owned. The artist does not typically profit directly from these sales (though Artist's Resale Right exists in some regions). This market includes auctions, sales through dealers specializing in resale, and private sales.
Collectors engage with the secondary market for various reasons:
Access to History: Find works by deceased artists or earlier pieces by established living artists.
Availability: Acquire specific artworks that are sold out or no longer available on the primary market.
Collection Building: Fill specific gaps in a collection based on artist, period, or theme.
Discovery: Uncover artists or movements that may not be currently represented by primary market galleries.
The secondary market operates through several channels:
| Venue Type | Examples | Key Characteristics |
| Auction Houses | Sotheby's, Christie's, Phillips, regional houses | Public sales, competitive bidding, set sale dates. |
| Dealers & Galleries | Specialists in resale, some primary galleries | Private sales, negotiation often possible, curated inventory. |
| Private Sales | Direct collector-to-collector deals | Often facilitated by advisors, discreet. |
| Online Platforms | Artsy, Artnet, specialized resale sites | Increased accessibility, requires careful vetting. |
Auctions can be fast-paced and complex. Here's what to know:
The Catalogue: Your essential guide. Study the lot descriptions, noting the artist, title, date, medium, dimensions, provenance (history of ownership), exhibition history, and literature references. Pay close attention to the estimate (predicted price range).
Condition Reports: Request and carefully read the detailed
condition report for any piece you're serious about. This goes beyond the catalogue description and notes flaws, damage, or restoration. Understanding potential issues is vital:
Art Care 101.
Viewing: Attend the pre-auction viewing if possible. Seeing the work in person reveals details about scale, texture, color, and condition that photos cannot capture.
Bidding: Understand the different ways to bid:
In-person: Register for a paddle.
Absentee Bid: Leave your maximum bid with the auction house beforehand.
Telephone Bid: Arrange to bid live via phone with an auction house representative.
Online Bid: Bid in real-time via the auction house's online platform.
The Costs – Beyond the Bid: Winning the bid is just the start. Factor in:
Hammer Price: The price at which the auctioneer's hammer falls.
Buyer's Premium: A percentage added to the hammer price, payable by the buyer. This can be substantial (often 15-27% or more) and varies by auction house and price level. Always calculate this into your maximum bid.
Taxes (VAT, Sales Tax, Use Tax).
Shipping and insurance costs.
Potential framing or restoration costs.
| Auction Cost Component | Description | Paid By |
| Hammer Price | The winning bid amount. | Buyer |
| Buyer's Premium | Percentage fee added to Hammer Price. Crucial Addition! | Buyer |
| Applicable Taxes | VAT, Sales Tax, etc. based on location. | Buyer |
| Shipping/Insurance | Costs to get the artwork to you safely. | Buyer |
Buying from secondary market dealers offers a different experience:
Process: Prices are often fixed or negotiable, offering more time for consideration compared to the fast pace of auctions.
Benefits: Dealers often have deep expertise, provide curated selections, and may offer more personalized service and advice. Transactions are typically private.
Considerations: Building a relationship with reputable dealers is important. Pricing may be less transparent than public auction results.
This is non-negotiable on the secondary market:
Authenticity: Is the work genuine? Look for documentation, expert opinions, inclusion in the artist's catalogue raisonné (the definitive, scholarly compilation of an artist's known works). Be wary of works with dubious attribution.
Provenance: The documented history of ownership. A strong provenance enhances value and helps confirm authenticity. Gaps in provenance can be red flags.
Condition: Assess the physical state meticulously. Are there repairs, tears, fading, warping? Obtain and understand the condition report. Factor potential restoration costs into your budget.
Market Research: Understand the value. Research the artist's recent auction results for comparable works (size, medium, period, condition). Check databases like Artnet or Artsy. See our guide:
Researching Artists and
Art Pricing.
Educate Yourself: Learn about the artists and periods that interest you. Visit museums and galleries.
Be Patient: Finding the right piece at the right price takes time.
Network: Build relationships with auction specialists and dealers.
Verify Everything: Don't rely solely on verbal assurances. Get details in writing.
Know ALL Costs: Budget comprehensively, including premiums, taxes, and shipping.
If you're considering selling, you'll typically work with an auction house or dealer on consignment. They will charge a seller's commission and potentially other fees (insurance, photography). You'll agree on estimates and potentially a reserve price.
The secondary art market offers exciting opportunities to acquire incredible artworks with rich histories. However, it operates differently from the primary market and carries unique risks. Success requires thorough research, careful due diligence, a clear understanding of costs (especially the buyer's premium at auction), and a measure of patience. By approaching it thoughtfully and informed, you can confidently navigate the world of art auctions and resale.
Q1: What's the difference between the hammer price and the total price I pay at auction?
A: The hammer price is the winning bid amount. The total price you pay includes the hammer price PLUS the buyer's premium (a significant percentage fee), plus any applicable taxes, shipping, and insurance costs.
Q2: How do I verify an artwork's provenance?
A: Look for a documented chain of ownership linking the work back to the artist. This can include gallery labels, auction records, previous bills of sale, inclusion in publications or exhibition catalogues, and letters or statements from the artist or recognized experts. Reputable sellers should provide available provenance details.
Q3: Is art bought at auction always a good investment?
A: No, not necessarily. While some artworks appreciate significantly, many do not. The art market can be volatile, and factors like artist reputation, condition, provenance, and current trends heavily influence value. Buying art primarily for love is usually advised over purely speculative investment. See Art as an Investment.
Q4: What is a catalogue raisonné?
A: It is a comprehensive, annotated, and published compilation of all known works by an artist, typically researched by a leading scholar on that artist. Inclusion in a catalogue raisonné is a strong indicator of authenticity.
Q5: Can I negotiate the price at an art auction?
A: No. Auctions are based on competitive bidding. The price is determined by the highest bid accepted by the auctioneer (the hammer price), plus the buyer's premium and other fees. Negotiation typically happens when buying from dealers or galleries on the secondary market, not at auction.
Q6: How does buying from a secondary market dealer differ from a primary market gallery?
A: A primary market gallery sells new work directly from the artist they represent. A secondary market dealer sells works they have acquired from previous owners (collectors, estates, auctions). The artist usually doesn't benefit financially from a secondary market sale. Pricing may be more flexible with a dealer, but you might have less direct connection to the artist's current practice compared to a primary gallery.
