If you have an estate that you need to liquidate, you can hold a yard sale, sell each item individually, hold an estate sale or hold an estate auction. When it comes to estate auctions, there are a variety of options to choose from. This article provides an overview of each option and details the pros and cons.
Hire a Professional Company
If you’ve never held an estate sale or auction before, it might your best option to turn to the professionals. Professional estate auction companies will take care of everything you need to make money and get rid of the estate’s items, but it comes at a cost. Some auction companies can charge you up to 50% of your total sales in fees and costs. Additionally, it could take a few months to get the payment from the sale.
Many professional companies will take your items from your home and sell them in an off-site warehouse. This is a benefit for some sellers because they don’t have to worry about random people being in the estate. However, in addition to the price tag of hiring auction professionals, you have to deal with some other downsides. One large downside is that these companies may only take high-value items, leaving you with the responsibility of getting rid of the other items in your estate. Some companies also have a minimum project size that they work with, so your estate may not qualify based on a company’s specifications. Be sure to read the fine print and call around for quotes to find out what service is best for you.
Some professional services operate on consignment terms instead of percentage fees. Consignment refers to the agreement made between you and an auction company to sell your merchandise at our auction, after which we are paid a percentage of the sale price and you are paid the balance. This option works best for high-value items that you don’t have the time to sell in other ways. With consignment auctions, you should know that companies typically reject about 50% of the items that come to them, so you shouldn’t be upset if your items aren’t accepted. Consignment auction services are typically very selective with what they try to sell.
If you have time on your hands and you don’t want to lose your earnings in fees, hosting your own auction or selling your estate items online may be the way to go. You can use any online sales platform to sell your items. Many of these platforms are free to use. If they’re not free, they will charge very nominal fees, helping you keep as much profit as possible.
When you’re selling your own items, you’ll need to be aware of potential scams and always keep safety a top-of-mind-concern. Moreover, you’ll need to be prepared to do the extra work of transporting or shipping your items to their new owners. If it’s a large item that will cost a significant amount in shipping costs, consider charging buyers shipping costs to protect your profits.
If you need to get rid of estate items, there are plenty of options available to you. Be sure to take enough time to carefully review all the options and make the smart choice for you and your family.