Collector's Information

Secondary Market

General term for sources of art works that have been sold previously. Auction houses and some galleries are the typical participants in the secondary market. For the works of some photographers, such as Ansel Adams, the secondary market is not only critical in establishing fair market value, but is the only source of original photographs. The Ansel Adams Gallery is an active participant of the secondary market and consigns or purchases works of Ansel Adams from collectors.

The secondary market today is predominantly auction houses, galleries, and private dealers. On-line auctions, whether private or auction house sponsored, are increasingly a way to collect some items. Collectors and sellers should be aware of the how the markets work in order to be confident of the transaction and getting the best price under the circumstances. The following discussion is specific to the secondary markets for Ansel Adams and other landscape photographers' works, as this is where our expertise lies.

Auctions

Auctions are the most interesting market, and certainly offer entertainment value to collecting. The major auction houses, Sothebys, Christies, and others, hold photography auctions twice per year in New York City during the same week. Sellers provide their art pieces to the house several months in advance, and may set a minimum price or "reserve". Up until recently, the seller agreed to pay a commission to the auction house of 15% of the hammer price. Now that there is competition between the auction houses, the commission is negotiated, and presumably more desirable lots (single works or a group of work) pay lower commissions. Lots are put together by the house to build the most interest and get the highest price for the works.

Buyers may preview lots in the week prior to the auction. The houses use their reasonable (and considerable) judgment on condition and authenticity and make no guarantees. However, all sales are final. Caveat emptor (buyer beware) is the phrase of the day. Buyers should inspect the works themselves, or hire a reputable dealer to inspect the works for them. When the bidding stops, the hammer falls "Sold!" Thus the term "hammer price". Bidders pay a premium, typically 20 percent, to the auction house over and above the hammer price. If the hammer price is less than the seller's floor, the lot is said to have passed and the work is returned to the owner.

Because the auctions are held at the same time, there are typically a greater number of buyers to compete for the same work of art. What is important to remember is that the hammer price is the highest that anyone is willing to pay at that time . The print of the same image and condition may go for less the next day simply because there is less competitive bidding. It may also go for more.

The other side of the coin is that the reserve is not always met. Auctions depend on the desires of the bidders present or on the phone. These vary, as do hammer prices, and the latter can be extreme.

On-line Auctions

On-line auctions are a new and interesting animal. There are many items for which there is no ready market otherwise, and the ability to find unique items is very great. More often these are lower value items, where any other market would have too great a transaction cost to make it worth while. There are exceptions, and the dream of picking up a grossly undervalued item is achievable. The most obvious concerns with on-line auctions is the accuracy of the description and the authenticity of the item. Sellers may use descriptions which convey different meanings to different people, and the warning of buyer beware is worth taking to heart. The Ansel Adams Gallery has had to contend with sellers using on-line auctions to offer Ansel Adams Yosemite Special Edition prints and representing them as Ansel Adams original photographs. Many people have paid well in excess of our price, and are very grateful when they have used an escrow service. An escrow service will hold money until the items have been inspected and accepted.

Galleries and Dealers

Galleries and private dealers operate in much the same way as each other. They may consign or purchase outright a single work of art or a group of pieces. A consignment is an agreement to hold an item for sale for a percentage commission. For cash flow concerns, a typical gallery or dealer will pay the seller less outright than they are willing to offer through a consignment. The consignor can set the price and/or a minimum price, the length of the consignment, and negotiate the amount of commission the gallery or dealer gets. By law, the gallery or dealer who sells a consignment must report the date and price of the sale to the consignor. The success of the gallery or dealer rests in both its reputation and reach to both sides, buyer and seller.

Not all galleries or dealers have the same consigning and sales practices, and how a gallery or dealer operates on the whole with these practices as a part is what determines a reputation. The Ansel Adams Gallery tries to be fair to all sides (we think successfully) when it comes to the secondary market.

Our Practices

We have set prices. With our knowledge of the photography market, particularly for Ansel Adams works, we believe the prices we set are fair, and reflect the print condition, provenance, and desirability of the image. Prices are periodically adjusted to reflect current market conditions, with, however, the consent of the consignor. We would rather not have the price set by how well one negotiates as opposed to the value of an image.

Our staff is knowledgable and provides information. We are not commission based, which contributes (although not the most significant factor) to a comfortable, professional atmosphere which our customers seem to enjoy.

Appraisals

Appraisals are conducted by licensed appraisers. The appraiser inspects the work, researches the market for comparable pieces, interviews specific experts and generates a report that will identify very specifically the value of the work and how the appraiser reached that figure. Under the code of ethics of the main appraisers associations, an appraiser should not have a financial interest in a work within a five year time frame of the appraisal.

The Ansel Adams Gallery is not an appraiser. We are approached occasionally by appraisers to provide market information. When we are approached by a collector to conduct an appraisal, we can either direct them to an appraisal association or provide a simple (and less expensive) value statement.

Value Statements

A value statement from The Ansel Adams Gallery is a letter that simply states a range of value for a photograph by Ansel Adams at a point in time. The range is based on our experience in the market and a basic description of a print provided by the collector.

The Value Statement is not an appraisal, and should not be construed as one. An appraisal must be done by a licensed appraiser, and requires inspection and research into sales of similar or comparable works.

Investment

Often, people will purchase art as an investment. To the extent that you are putting money into a piece of art, it is an investment. The expectation of an increase in price or value is, in some cases, reasonable, but never guaranteed. Be wary of the dealer or salesperson who makes such a guarantee. Prices fluctuate, and can change rapidly.

The Ansel Adams Gallery is not an investment firm, and we do not employ licensed financial advisors (except by chance and totally unrelated to selling fine art). We do not sell any item on the basis of it being "an investment". The price a collector receives for selling an item may not be as much as what the collector paid. The market the collector uses to sell the item will determine the difference between the selling price (value) and how much the collector receives.