Basic Rules of Buying Art

Rule #1- BUY WHAT YOU LOVE. Never Buy only for the sake of making an Investment.
You must love your art and allow it to give you pleasure every day.
If dollar signs are all you think about when you look at it, it's not good for your soul or for the art.
In the very unlikely case your art happens in increase in value, consider yourself lucky that you did not have to pay more for the same pleasure. 99% of all artwork never goes up in value: Like a car, many pictures decline 50% in value the minute you walk out of the gallery.

The art market fluctuates the same as every other market: For example, big collectors who paid top dollar for art in the late 80's were left with unwanted inventory in the early 90's when the Japanese stopped buying art and Wall Street declined.
Art is not liquid. Typically, a dealer who sold you something, will not not take it back five years later. They have new work to sell by the artist, and does not want to deal with older works. Unless, the artist has substantially appreciated in value.

Rule #2 - DO YOUR RESEARCH

Learning about art takes time and effort just like learning about anything else. Look at art constantly and develop your eye, so that you learn what you like and why. The more you look, the more you'll come to understand the difference between what is good and what is not. This might not change the kind of art you like, but will help you distinguish between the good (of what you like) from the bad. Note the "Isn't it amazing" picture (Thomas Kincaid for example) and how many there are....
For the uninitiated, a realistic oil that looks like a photo can be an amazing - How did the artist do that? Well, it's actually quite simple. Anyone can learn if they have time and patience.

Rule #3 - TRUST YOUR TASTE

At the end of the day, after looking and looking, you must trust your own taste. Good art comes with many different syles and subjects. The style and subject matter that really speak to you depends on how well your personality converges with that of the artist. You might have an eclectic sensibility and appreciate many kinds of good art, you might like the romantic landscape, colorful expressionistic painting, or Zen-like minimalism. No matter what kind of art really grabs you, do not be afraid to mix different things in one space. In the end your general taste will connect them all.

Rule #4 - LOOK FOR VALUE.

Although you are NOT thinking "investment potential" (you're not, are you?), you should be thinking VALUE.

You do not want to be taken advantage of, and in the art world, it's easy to spend lots of money on junk. You must go through the learning process. If you're spending under $700 for an original work on paper or under $2000 for a good - sized painting, don't worry. Use these numbers as general guidelines for buying artwork, and remember buy anything that pleases you and is affordable.

Remember, artists have to make money too. A typical artist who makes one watercolor a week and sells it directly for $500 each, makes $24,000 a year. Furthermore, she probably has an expensive Masters of Fine Arts degree, plus the costs of postcards, stamps, supplies, paper, rent, and framing. Most likely, she has a day job and is caught in the classic artist-bind: the artist has to make enough to live, and at the same time, find time to paint. It's a hard life, so give her a break and don't complain about her trying to sell an original work of art for more than $300. Pay her gladly.

Rule #5 - BUY FROM reputable art DEALERS