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For years, the Seattle Art Museum has let its most generous supporters rent
original artworks from its auxiliary gallery, charging $40 to $600 a month so
patrons could create temporary exhibitions in their homes. But now the museum
has a burgeoning new market for its highbrow rentals -- home sellers in search
of an artistic edge.
Museum officials say they've seen a spike in their art-rental business thanks
in part to home stagers, who redecorate houses in hopes of boosting their sales
prices and increasing the odds of selling. One Seattle artist popular with this
set: abstract expressionist Drake Deknatel, whose paintings have been used in
some 200 homes, according to gallery records and one of the city's largest
staging companies. "It's amazing how it's taken off," says SAM Gallery director
Barbara Shaiman.
As home sales slow in many areas and more houses linger on the market, some
sellers are going to greater lengths to catch the buyer's eye -- by installing
splatter paintings by emerging artists, 7-foot-tall metal sculptures, even works
by Calder and Dali. It's a pronounced shift in the strategy of staging, which
traditionally held that the fastest way to sell homes, and get the highest
price, was to give them a toned-down, hotel-style makeover. Now, rather than
merely boxing up family knick-knacks, adding a new couch or repainting the
bedroom in jewel tones, stagers are experimenting with a riskier approach.
The new practice is boosting business for art institutions. At the SAM
Gallery, revenue has more than doubled in four years, to $1 million, says Ms.
Shaiman. Sales have doubled since 2001 over at the Larsen Gallery in Scottsdale,
Ariz., in part because of bigger orders for contemporary art from homeowners and
sellers of the area's new, loft-like buildings. At New York City's Agora
Gallery, director Angela Di Bello says she fields at least five calls and emails
a day from inquiring real-estate agents, up from "none" a few years before.
"I've been in this business 25 years, and I've never seen anything like it," she
says.
Last week, securities lawyer Eric Klein and his wife, Susan, put their home
in Encino, Calif., on the market for $1.5 million after dressing it up with a
dozen pieces of rented art. Outside, the two-story, four-bedroom house looks
much as it did when the couple bought it 12 years ago for $630,000, with the
same blue-gray wood shingles and yard full of lemon and apple trees. But inside,
the place looks like a gallery. There's a cherry-red canvas with black, green
and blue geometric shapes by neo-Surrealist Patrick Slattery in the living room,
and a brick collage sculpture by Sandy Bleifer hung on the wall of the curved
staircase. Rather than enlist the advice of a stager or designer, the Kleins
visited the Art Rental and Sales Gallery of the Los Angeles County Museum of Art
and selected works that suited their own taste. Total cost to rent: $750 a
month. "The art just brightens up the rooms immensely," Mr. Klein says. "And
it's cheaper than renovating."
Falling in Love
The strategy isn't foolproof, certainly. In February, Santa Fe resident Wendy
Jacobs went on a broker-sponsored homes tour, where she saw a $1.9 million
mansion that had been decked out with art and furnishings. But rather than make
an offer on the house, the retired public affairs executive called
Aleta Pippin, one of the
artists featured, and bought her painting, "Path to Freedom," for $1,200. The
house is still on the market, brokers say. "It was the art I fell in love with,"
says Ms. Jacobs.
Loaner art is fairly easy to come by. A handful of museums and a host of
galleries and leasing services nationwide rent art for temporary use, with
monthly fees from $25 to $8,000 per work and rentals allowed, in some cases, for
up to two years. The Artists Gallery at the San Francisco Museum of Modern Art
has a revolving inventory of 3,000 works by lesser-known regional artists that
it rents in two- or three-month increments for $60 to $800. Renters don't have
to be museum members, and half of the fee for the first few months can be
applied to purchase of the piece.
Even works by established artists -- including Salvador Dali, Robert Indiana,
Larry Rivers and Lorna Simpson -- can be rented from places such as Scottsdale's
Larsen Gallery. Typically, rental rates are 2% of the artwork's retail price.
Art-world insiders aren't surprised that real-estate types have seized upon
fine art's power to persuade, though evidence of its impact on sales is largely
anecdotal. "People want to be engaged, and when they see great art in a home,
they're seeing something new and inspiring," says Marena Grant Morrisey,
executive director of the Orlando Museum of Art, whose auxiliary gallery leases
works from its print collection to local corporations but not to individuals.
The art-house strategy is one of the ways sellers are pressing for
competitive advantage as residential sales slow. At the end of June, unsold U.S.
homes numbered 3.7 million, a 42% increase compared with a year earlier,
according to the National Association of Realtors. Sales of new homes are
expected to drop this year by 12%, to 1.1 million, in part because of rising
interest rates. And some high-end markets have a glut of available properties --
some on the market for more than a year.
For years, upscale condominium developers have added a blue-chip work or two
to class up common areas. What's new is that the middle market has joined in by
favoring one-of-a-kind works over mass-produced posters. The strategy works,
according to Showhomes, a Nashville company that has furnished 23,000 residences
over the years, mostly model homes. Two years ago, the company hung 5-foot-tall
red and blue streetscapes in a pair of homes in Mobile, Ala.; one had sat on the
market for two years, the other for three. Less than a month after the paintings
were installed, the first home's owners accepted an offer for 93% of its list
price, and the second sold for about 98% of its list price. Says Larry Lyles,
co-owner of Showhomes: "I'm convinced the canvases did a lot of the work."
Still, reactions to art-staging vary widely. Last weekend, potential home
buyers Janet Micka and Bill Cirino stopped by an open house in Seattle's
Northgate neighborhood that included works by local artists. Ms. Micka thought
the $500,000 Craftsman-style house looked more inviting than it had when she saw
its bare walls on an earlier visit. While Mr. Cirino liked the art, he said it
didn't distract from the creaky wooden gutters and dimly lit dining room. "It
doesn't make a dime of a difference," he says. "When I see a big picture on the
wall, I tend to want to see what's behind it."
Style Matters
Richard Pohl is a believer, however. The Salem, Mass., psychiatrist and his
wife, Sally Jablon, expect to move into a $700,000 townhouse today in nearby
Marblehead. They actually passed on the place a few months back, but upon
revisiting recently, they say, they were more impressed. Why the change of
heart? Five oil paintings of trees by local artist Debra Freeman-Highberger had
been hung by a stager from Da Vinci Designer Gallery, who continued the woodsy
theme with twig wreaths, twine balls and an espresso-colored dining table. The
effect, Dr. Pohl says, was transformative. "The artwork made it all feel like a
home, as opposed to a space. And suddenly," he says, "things that worried us
before, like the Home Depot sinks, worried us less."
Despite such testimonials, not everyone in the art world -- or even the
real-estate business -- is a fan of loaner art. Curators caution against placing
paintings in homes where humidity and temperature may fluctuate wildly. And
brokers say damage might not be covered by homeowners' insurance, which
typically covers only loss or theft of rented art.
Choosing the right work can be tricky. Seattle stager Jan Sewell, who uses
about 100 pieces a month in clients' houses, prefers contemporary abstracts with
a lot of color. Other effective choices include landscapes and paintings with
primary-color palettes, pared-down modern sculptures and detailed botanicals.
Stagers steer clear of works with nudity or religious themes. Presentation
matters, too: A canvas that's too large or small for a space will detract from
the look of a room.
Even well-known artists can present a problem. When surgeon Keith Saxon hired
a stager to prepare his $890,000 Tudor home in Bethesda, Md., for an open house
in November, he was initially upset when the stager stashed away his prized
Andrew Wyeth. "I said, 'This is a Wyeth. You want this around,' " Mr. Saxon
recalls telling her. But the stager persuaded him to keep the painting -- a
watercolor of a naked woman's torso -- hidden under his bed until the house sold
this spring. "They finally convinced me," he said. "It got the house sold.
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