So you’re ready to be an art collector. But where do you begin? You don’t have to start with a Monet or a Picasso, but art experts advise that you buy art more for love than for money. With that in mind, how do you know when you have become a true art collector? A typical person looks at a painting he or she likes and thinks, “Hmm, that would look good over the sofa.” An art collector, however, thinks, “Wow, I need a different sofa.”

Collecting art—meaning original works, not reproductions—can be an intimidating concept for beginners, but you don’t need an art history degree to do it well. What you do need is the desire to make an investment in something that is more a passion than a pastime. The hallmarks of a true collector include forming relationships with dealers, keeping up with your chosen genre and checking on what “your’’ artists are creating.

The first step in collecting is understanding the investment involved—there’s no guarantee of a profit. Betting on the future value of a work of art is pure speculation, and many wealthy collectors have lost big on acknowledged masterpieces. Sure, your art may appreciate in value if New York’s Metropolitan Museum of Art acquired a work by the same artist. But to most art experts, the idea of art as investment is anathema. “Buying art should feel the same as falling in love,” says Roberta Maneker, a New York correspondent for Art & Antiques. “You should really want to have that work of art around you day after day.”

Before you fall head over heels, analyze your objectives. Ask yourself if you want to focus on a particular genre. Most collectors specialize to gain solid expertise in one category. Also, determine how much money you can spend. If it’s no more than $30,000, you’ll get better results in the contemporary category (art of the past 20 to 30 years) than with Old Masters.

For $5,000 or less, consider prints, drawings, photography and craft objects such as pottery or fabric arts. Glen Helfand, art critic, professor and author of Collecting Art: A Journal to Get You Started, recommends looking at artwork from emerging young artists. “You could be getting in on the ground floor of a great career, and, of course, their prices are lower,” he says.

You also need a grasp of basic art concepts. Buy magazines like Art & Antiques and Art in America for news on artists, genres and trends, as well as lists of exhibitions. Many museums run collectors’ seminars, and high-end art fairs allow you to browse multiple styles and artists at one time. Auction houses are also great educators, since you can observe auctions, read exhibit catalogues and attend lectures particular to their collections for free. If you can’t attend in person, subscribe to their exhibition catalogues for an annual fee. Auction houses to try include Bonhams & Butterfields (butterfields.com), Christie’s (christies.com), Sotheby’s (sothebys.com) and Dorotheum (dorotheum.com, specializing in the Old Masters of Europe).

Once you understand the lay of the land, you’ll be ready to browse galleries and find a trusted art dealer. Search the Art Dealers Association of America’s Web site (artdealers.org) for dealers and exhibitions nationwide, or subscribe to Gallery Guide (galleryguide.org), which publishes monthly listings of galleries by region and genre. The atmosphere at a gallery may be hushed, but there’s no need to feel intimidated, Helfand says. “They’re not museums, they’re simply displaying product.”

Art, especially contemporary art, often provokes more questions than answers. Ask questions of the artist, exhibition curator or gallery director until you understand. “Gallery owners want people to feel comfortable, and they really want to talk about the work and show what artists are trying to do,” Helfand adds.

On the other hand, galleries aren’t so casual that you can expect to bargain. Prices are usually set, with at most a discount of 10 percent. But many states have consumer laws in place to prevent price gouging, like the New York statute requiring printed price lists at galleries to prevent dealers from suddenly hiking price tags when a wealthy-looking client walks in.

Also, check for the dots: A red dot stuck on a painting’s label means the work has been sold, and a green or half-red dot indicates another buyer has reserved the work or has a right of first refusal.

A vitally important relationship is the one with your dealer. Dealers are the key to transforming your efforts from a passion into a truly great collection. Many dealers let trusted clients try out a work at home, and also permit time payments without interest. A good dealer will advise you, bid for you at auctions and let you know when good artwork is available. Though dealers work hard for you, like any good consultant they’re paid well: According to Gilbert Edelson, vice president of the Art Dealers Association of America, “The typical commission is 50 percent of the work’s selling price.”

If your art collection consists of multiple pieces or is particularly valuable, you should also invest in an alarm system and have sufficient insurance coverage. Reputable firms include Chubb, AIG and AXA Art Insurance, but your dealer can also advise you on coverage. For fire and theft coverage, insurers usually require appraisals every three to five years in order to cover the full value. “It’s also a good idea to appraise regularly, because in a fast-moving market, your collection may have appreciated significantly,” Maneker says. Dealers and auction houses offer appraisals, and you can also find an appraiser of your genre through the Appraisers Association of America (appraisersassoc.org).

A good education is essential for collecting art. And though it’s a gamble whether that knowledge will pay off in increased net worth, you can be assured that it will broaden your horizons and beautify your surroundings. You won’t even mind buying that new sofa to complement your collection.

What is the best method for bidding—and winning? Auctioneers offer five tips:

1. Survey the scene. Attend at least one auction before bidding to observe how things are done. Houses can differ in their processes, including the buyer’s premium and applicable taxes, so make sure you know the terms beforehand.

2. Preview before you buy. Don’t just go with estimates, and never bid on something you haven’t previewed first. Ask for a condition report about a piece’s damage and restoration history, and talk to the specialist who catalogued the artwork.

3. Take the middle seat. The middle of the room offers the best perspective for viewing the auctioneer, the audience and the phone bids. The back can be noisy and the auctioneer may not see you, while the front doesn’t allow you to see the bidding going on behind you.

4. Know your paddle etiquette. To bid, raise your paddle and then set it down. Don’t just keep it raised because someone may bid against you for the heck of it. Also, don’t jump increments unless you’re prepared for the consequences. If the bidding is at $1,100 and you impulsively call out $2,000, a rival may call out $3,000, making your heart’s desire more costly.

5. Enjoy yourself—within limits. Before you bid, decide on the most you intend to spend, adding two more increments in case you get carried away, but don’t go beyond that. Remember, the winning bid does not include the buyer’s tax and premium tax. Don’t be intimidated by the auctioneer—you can wave across the room to a friend and the auctioneer will know you aren’t making a bid. Ultimately, be relaxed, have fun and enjoy the event, whether you win or not.

Art Basel Miami Beach Miami Dec. 1–4, 2005; Nov. 30–Dec. 3, 2006	This three-year-old offshoot of Switzerland’s prestigious Art Basel showcases work by both star artists and acclaimed unknowns. Equally appealing: You can mingle with the talent at cocktail parties on the beach.
The Armory Show New York City March 10–13, 2006	Set along the Hudson River, the Armory is devoted exclusively to contemporary art. More than 160 international galleries ensure literally “miles of aisles.”
Art Basel Basel, Switzerland June 14–19, 2006	Unquestionably the most important contemporary art fair in the world, with 5,000 pieces shown by more than 1,500 artists. Every contemporary artist worth his salt has shown here, and it’s a good place to buy emerging stars before their prices skyrocket.
Frieze Art Fair London Oct. 20–23, 2006	Launched just two years ago, the Frieze has eclipsed New York fairs in buzz with its “risky” contemporary art. Celebrity viewers range from British royals to Madonna and Kate Moss.
Art Cologne Cologne, Germany Oct. 27–31, 2006	Europe’s oldest fair for modern and contemporary works features 220 international galleries, with special areas for “New Talents” and “New Contemporaries.”