FAQ/Statements/Answers Regarding Estate Sales and Auctions (ES&A)
Question:
What’s the difference between an estate sale and auction?
Answer:
An estate sale is the sale of items in the home when a client is downsizing, moving, relocating, liquidating or death. The sale usually occurs at that person’s home for 1-3 days. Prices are firm but items are usually discounted the 2nd and 3rd day.
An auction is also selling items for the same reasons as an estate sale but conducted by a licensed auctioneer who sells items offsite by a bidding process. The auctioneer usually sets the starting price for bidding.
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Question:
Do I have enough for an estate sale?
Answer:
Although I can often judge this, there are times I have been surprised when someone has found an ESC (estate sale company) or A (auctioneer) to take on their sale when I thought they may not have enough and others have not, when I thought they had enough. The market is continually changing and what once was considered a valuable antique is no longer easy to sell. Call a couple different companies and make an appointment or send them a range of photos via email to save time.
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Question:
What if I don’t think I have quite enough for an ES or A?
Answer:
Ask the ESC or A if they combine sales with other people who may also not have enough. Ask how they keep track of yours vs. others, how they split advertising etc…
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Question:
What is a good range of photos to send?
Answer:
A good range of photos means giving the ESC or A a sampling of your items. If you have lots of sportsmen-type items ie: hunting, fishing, animal mounts etc…send a sampling. If you have a living room full of furniture, try and get a photo that shows the room, or if you have jewelry, a car, collectables etc… Consider about 10 photos, or ask the owner (ESC) what they’d like.
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Question:
My husband’s co-workers want to go through items first, what do you think?
Answer:
The more stuff you sell off before an ESC or A comes to visit, the less of a lure you have to get them to do your sale. Friends and coworkers often do want to come through and see what they may need, but consider that if you sell early, you may be left with less desirable items for a sale so you won’t get an ESC or A interested, and may have trouble getting rid of the rest. I advise my clients to have the experts (ESC or A) come through first, and don’t do any early sales (yes you’ll make more money because you won’t have to pay their commission, but in the long run, it may thwart your efforts).
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Question:
Should we have an ES or A before or after we put the house on the market?
Answer:
Talk to your realtor. It’s been a recent trend to sell homes empty, or have a stager with fresh furnishings come in and stage the home to show it with all current stuff. You might discuss having an estate sale at the same time the home is listed so you can get extra traffic through the home which may result in a faster sale.
Consider if money is needed before the home sells or will there be tax benefits based on timing. Since everyone’s situation varies, I suggest asking your financial advisor as well.
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Question:
What percentage does an ESC or A take?
Answer:
It varies. Ask a lot of questions and read the contract. Good questions to ask are: What happens to the goods that don’t sell? If you are selling the remains to a liquidator, do I get a percentage of that? If you bring in a dumpster, how is that paid for? Do you allow your staff to buy before the sale? How do you advertise and what do I pay for advertising? ESC & A are like any other business and want to make money. You benefit from not having to do hours of laborious work and research.
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Question:
Should I hire an appraiser before I have an ES or A?
Answer:
ESC and A should be able to price your items according to the current market, and remember the market it different based on where you live. An appraiser has to hold special credentials. It’s best to talk to an appraiser with credentials and also ESC and A and see what the best route is for you.
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Question:
When is the best time to have an ES or A?
Answer:
Ask the ESC and A. Look at your local calendar. Is MSU playing U of M? Might not be the best Saturday for a sale.
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Question:
Should I clean out before I call the ESC or A?
Answer:
No. Remember the phrase, “one man’s junk is another man’s treasure?” When you hire an ESC or A, they will do that work for you. They know what is not saleable, and you’d be surprised at what people pick up. Even ½ used bottles of laundry soap sells at the right price.
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Question:
Should I run my own estate sale?
Answer:
Perhaps. Some organizers do estate sales as part of their services, and some might help you set up or consult. The latter is what Re-Nest will do. You need to weigh the cost. Are you willing to do the research to get items prices correctly for your area? Do you have friends and family to help? Are you savvy with photos and getting them up on sites to advertise? What can you do and what can be hired out? Do you have family members or friends that you can pay to do some things you are not good at? It’s a lot of work with lots to consider, that’s why there are people in the business.
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Question:
Do I need an organizer before I hire an estate sale company?
Answer:
You might need an organizer if you are having trouble deciding what to keep for yourself. Organizers can often help people think through what might be needed and/or help them decide if it’s time to let go of something.
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Special thanks to Darlene Hines ISA CAPP Certified Appraiser, for her contribution.
Nostalgia
Antique Appraisal Services
7 W. Square Lake Rd
Bloomfield Hills, MI 48302
248-590-0130
