How do I sell an expensive painting?

So, how to decide? Here is a look at the pros and cons of each approach.

Auction houses, which only take items on consignment, hold public sales for certain objects at specific times. For instance, Christies and Sothebys hold their postwar and contemporary art auctions in New York City in May and November. The art world sits up and takes notice when a painting or sculpture of particular note goes on the block, and record prices in such cases arent unusual.

However, despite the publicity, prices realized at these auctions often dont reach great heights. Prospective purchasers know the house will charge a buyers premium, as high as 25%, and factor this into their bids. Sellers, meanwhile, are charged a variety of fees (for photography, insurance, storage and marketing), as well as a commission of as much as 20%, depending upon the selling price.

Because they occur within a narrow window, auctions also are perilous affairs. A plunge in the stock market, the sudden illness of a likely bidder and other factors can significantly hurt a sale on any given day. Some 20% to 30% of all lots at major auctions dont sell, and this failure tends to rub off onto the artworks themselves. Indeed, falling short of expectations makes a piece less likely to sell at any time in the near future. Anyone subsequently researching the piece will learn that no one wanted it, which will depress both interest and prices.

The quieter approach

Transactions with dealers and galleries, by contrast, are private. No one needs to know if the owner of an artwork unsuccessfully offered it to a gallery, whether it is for sale by consignment or a direct sale.

Sellers to dealers and galleries, however, must be prepared to accept substantially lower prices than what their piece may bring on the market.

Robert Schwarz, a gallery owner in Philadelphia, says he is often asked two questions by persons looking to sell him a piece: What price do you think you can sell it for? and What would you buy it for? Those are two very different prices, says Mr. Schwarz. If he believes he could sell a painting for $100,000, he will offer a price more akin to wholesaleusually between 50% and 75%.

Why, then, would anyone consider selling to a gallery or dealer, rather than putting a piece on consignment? Mostly, it is a matter of how long the artworks owner can afford to wait before a sale is made.

Robert Fishko, owner of Forum Gallery in New York, says he is often asked by consignors, How long will it take to sell? I always say, Five minutes after I show it to the client who wants it.

When a piece in a gallery on consignment doesnt sell, the owner has a few options. Consign the piece to another gallery or to an auction house. Hold on to the piece until something changes that improves its prospects. Or consider selling the piece directlythough at a discountto an interested dealer or gallery. (Dealers and galleries, however, are very selective in what they will purchase.)

Also consider this...

A few more pointers are in order.

Dealers of old masters and 19th century art are more apt to buy works than take them on consignment. Dealers of these pieces dont mind so much if they take a while to sell. A dealer will often use that time to have canvases cleaned, relined, reframed and researched, in an effort to maximize his or her profit.

With older art, the prices may fluctuate, but there is no question that people 100 years from now will still be interested in buying works by Corot or Homer or Inness or Whistler, says

Thomas Colville, a New York-based private dealer of 19th century American and European art. Mr. Colville says he regularly buys paintings from collectors, paying 60% to 70% of their retail value.

Contemporary art dealers, by contrast, tend not to buy works because prices for contemporary artworks can be a roller coaster, and dealers may be nervous about inventory that suddenly goes out of fashion.

Janet Borden, a New York gallery owner specializing in photography, says her gallery buys works by artists it represents only if the edition is sold out. Otherwise, I am in competition against my own artist, she says, and thats not a good thing.

Mr. Grant is a writer in Amherst, Mass. Email .