Reference · reviewed September 2026
Art Market Glossary
A short, plain-language glossary of the art market terms that most often confuse collectors, advisors and developers. Each entry is cross-linked to a longer essay where the concept is treated in more depth.
- Primary market
- The primary market is the first sale of a work, by the artist or the artist's gallery. The price is set by the gallery and the artist together, and the work has no prior sale history. The primary market is where most contemporary art enters the market, and where the artist's relationship with their gallery is the central economic relationship. Continue reading: Primary vs. secondary market, in plain language.
- Secondary market
- The secondary market is every resale of a work after the primary sale. It includes private sales, gallery resales, and auction sales. Prices in the secondary market are determined by what a buyer is willing to pay, with reference to the work's prior sale history, the artist's current primary-market standing, and broader market conditions. Continue reading: Primary vs. secondary market, in plain language.
- Asking price
- The asking price is the price at which a work is offered for sale. The asking price is set by the seller, and the seller's reserve is a separate matter. In the primary market, the asking price is typically the price at which the gallery will sell. In the secondary market, the asking price may be negotiable in a way that the primary market price is not. Continue reading: Asking price, auction result and fair value are not synonyms.
- Hammer price
- The hammer price is the price at which the auctioneer's hammer falls at the conclusion of bidding. The hammer price excludes the buyer's premium, taxes and any additional fees. The hammer price is the figure most often cited in resale comparisons; the figure the buyer actually pays is materially higher. Continue reading: How to read an auction result.
- Price realised
- Price realised is the auction-house term for the hammer price plus the buyer's premium, i.e. the total amount the buyer paid. It is the most accurate single number for sale comparisons, but still excludes taxes, shipping and any other post-sale costs. Continue reading: How to read an auction result.
- Fair value
- Fair value is the price at which a work would change hands between a willing buyer and a willing seller, neither under compulsion, both with reasonable knowledge of the relevant facts. It is the language used in formal valuations and appraisals, and is distinct from the asking price, the auction result, or any other single transaction price. Continue reading: Asking price, auction result and fair value are not synonyms.
- Provenance
- Provenance is the documented history of ownership of a work, from the artist or the artist's studio through to the current owner. A complete provenance includes every intermediate owner, dealer, auction house and (where relevant) exhibition and publication. Gaps in provenance are not necessarily fatal to a work, but they are an explicit part of the diligence file. Continue reading: Provenance file checklist for private collectors.
- Private sale
- A private sale is a sale that does not go through an auction or public listing. Most secondary-market sales at the top of the market are private, and the pricing, terms and conditions are typically confidential to the parties. A private sale may be brokered by a gallery, an advisor, an auction house's private sales department, or a combination. Continue reading: Private sales in the art market.
- Deaccession
- Deaccession is the formal removal of a work from a collection. For private collectors, deaccession is a private decision; for museums and other institutional collections, it is governed by a formal deaccession policy and (in many cases) by professional standards that govern the use of the proceeds. A collector considering a deaccession should seek independent legal and tax advice. Continue reading: Deaccession — a collector's guide.
- Due diligence
- Due diligence is the process of verifying the relevant facts about a work before an acquisition: the object, the provenance, the condition, the exhibition and publication history, the market context and any legal, tax or sanctions considerations. Due diligence is the difference between a considered purchase and an avoidable mistake. Continue reading: How to build an artist research file before you buy.
- Reserve price
- The reserve price is the minimum price at which a consignor will allow a work to be sold at auction. The reserve is confidential between the consignor and the auction house, and is typically below the low estimate. A work that does not reach its reserve is 'bought in' and the consignor retains the work. Continue reading: How to read an auction result.