Artnet News: OpEd on Art Advisors
As the Art Industry Has Ballooned, So Has the Number of People Claiming to Be Expert Advisors. Here’s How to Tell If They Actually Are
An editorial by Megan Fox Kelly published by Artnet News, highlights the increased influence of art advisors on the art market and the professional standards collectors should expect of them. In this post, an excerpt from the article outlines recommendations for finding the right advisor. Read the full article here.
Asking the right questions
The expanding role of the art advisor can have either a negative or a positive impact. When art advisors lack experience or work unethically, it breeds mistrust in the marketplace. But the opposite can also be true: experienced, effective, and ethical art advisors have a positive impact not only on the collections they build, but on the market as a whole. A collector considering starting a relationship with an art advisor therefore should consider several questions before engaging in what can be one of the most gratifying—or disheartening—relationships of their collecting career.
What is the Advisor’s educational background and level of experience?
Advisors hail from many backgrounds. In fact, as a general rule, advisors benefit from having experience with—and having developed contacts within—more than one realm of the art world, from galleries and auction houses to museums and universities. Curators, for example, bring a depth of art-historical knowledge, but would benefit from some direct involvement in the market before becoming an advisor.
What is their area of expertise?
Advisors and appraisers should not advise outside of their area of specific expertise. Collectors will want to work with an advisor who knows their field of interest deeply, and have the experience and relationships to facilitate research and access to the right works of art to help build a collection of lasting quality and distinction. At times, we will collaborate with curators or other advisors with expertise beyond our own to help a client with a new area of interest and bring them the trusted advice they need to make smart decisions. These relationships expand, rather than curtail, our practice.
How are transactions conducted and what fee structure do they use?
Art advisor fees can be based on retainers, commissions on sales and purchases, hourly rates for services, or a combination thereof. Collectors with extensive holdings, for example, who are actively acquiring works each year and require considerable collection management services, might prefer to work with their advisor on a retainer basis, while collectors who rely on advisors to help them source, vet, and strategically advise on acquisitions might decide that a commission on individual transactions is more appropriate. While each form of compensation is acceptable, the most important factor is that an advisor’s fees are clearly delineated in a contract or engagement agreement and that all facts of any transactions are completely transparent.
Do they own inventory, or are they affiliated with a gallery, auction house, or dealer?
I and the APAA advocate for independent advisors who work only in their clients’ best interest and do not have conflicting priorities. While good relationships with other players are essential, outside partnerships can muddy the waters.
What range of services do they provide?
Beyond consulting on acquisitions and facilitating sales, many advisors organize transport, installation, conservation consultation, storage and collection management, and work with financial advisors or family offices on long-term planning for their clients. Collectors may need some or all of these services to support their collecting, and understanding the experience of an advisor and their relationships in related fields will help them to find the right fit.
Are they a member of APAA or another professional association?
The APAA, the Appraisers Association of America, and the Art Dealers Association of America are professional organizations that carefully vet candidates for membership based on experience, expertise, and reputation; they also set expectations of professional conduct based on their codes of ethics. Members of the APAA have a minimum of five years’ experience as professional art advisors and considerable careers prior to establishing their practices. We do not maintain inventory and we are expected to conduct transactions for our clients with clarity and transparency, and to avoid any situations that pose a conflict with our clients’ interests.
Read The Value of An Appraisal to learn more about the appraisal process and our expertise.