Simplify Your Home Part 5: Selling Your Stuff
I'm often asked how to go about selling items to dispose of items no longer wanted with the idea of generating a little cash in the bargain. While this is a great idea, it can be a lot of work. Understanding what is involved will help you decide whether selling your items is worth the time and effort.
THE GARAGE SALE:
In a garge or yard sale, the goal is to price the items attractively - high enough to allow for bargaining, but low enough to encourage sales.
Check local regulations as to where you can sell, sign regulations (how big, where they can be posted, when they have to be taken down).
Weekends are best. Limit the sale to 1 day only. The majority of people assume everything good has been sold on the first day anyway, so you'll be wasting time on the second day, unless you have a lot of items. The downside: they are a lot of work, and sometimes people get upset by the insensitive comments of bargain shoppers picking over their family's treasures.
THE ESTATE SALE:
The difference between garage and estate sales is that at an estate sale the entire contents of the house are sold - from the living room sofa right down to the bathroom towels.
You would be amazed what people will buy at estate sales. I actually saw one gentleman in the laundry room of a client's home taking her laundry detergent.
The biggest advantage of an estate sale is that in a day or two you can empty the house of everything you don't want to keep.
Most estate sales are held over two days, however I favor the one day approach.
On the second day, usually the prices of items remaining get discounted by at least half - and sometimes buyers will return on the second day to get what's left at lower prices.
Doing it Yourself: You will save the commission or fees paid to a professional. However, realize that estate sales are a LOT of work. You must plan well in advance to clean items, organize, display, and price them.
Do not underestimate the time it takes to prepare for an estate sale. On average, a family home of 25 years or more of accumulated items takes 2 professionals working together roughly 4-5 full days to organize, display, and tag. It will probably take you longer than that, especially if you are uncertain of how to price things and are dealing with a variety of emotions during the process.
Recheck if you have valuable items that need appraising. At an estate sale, buyers usually understand that they will probably have to pay more than at a garage sale, but if the item is very valuable you may want to dispose of it at a private sale.
Buyers will want to buy everything - even your old documents, photographs, and family memories. Make sure these are set aside before the estate sale.
If possible, remove all items you want to keep from the house.
Tie off or lock areas where you do not want buyers to go. They will feel free to wander anywhere in the house - and I have seen people actually go under ropes and signs clearly marked - so it is a good idea to have helpers stationed around the house to keep an eye on people.
Estate sales, especially in certain neighborhoods, will bring big crowds. Shoppers will line up outside the entrance hours before the sale. I have heard some people ask for a nominal admissions fee to enter the home to discourage people from just going in and snooping. This fee can then be deducted from the purchaser's total bill of sale.
The estate sale is not for the faint of heart. Think this option through carefully before you commit to an estate sale.
BENEFITS OF HIRING A PROFESSIONAL:
They know how to price items and how to attract buyers.
It is less work for you and a lot less time. They do all the leg work.
They serve as a buffer between you and some of the unpleasant aspects of having an estate sale - namely - the buyers!
Professionals help you balance the two goals of maximizing the value of the estate and the need to empty the home. In most cases, estate sales make more money for the client with the help of a professional - even considering their fees.
AUCTIONS:
- There are 3 types of auctions:
Whole house or estate auctions
- Selling at major auction houses
- All out purchase of goods for a flat fee or commission on items sold at auction
WHOLE HOUSE OR ESTATE AUCTION:
- Most of the time you are expected to do the prep for whole house auctions (sort, organize, display).
- Some companies now offer a "full service" choice - charging higher commissions.
- The auctioneers work on commission, earning a percentage of total profits on the sale (10-20%).
- Auctioneers take care of the advertising and marketing and have a database or list of people they mail to.
- Auctions work if you have a number of valuable items to insure a draw. If you don't have this, you are better off having a garage or estate sale.
- National Auctioneer's Association can help you find qualified auctioneers or go to www.auctionzip.com for a list of auctioneers in your area.
AUCTION HOUSES:
Many houses now have auctions of "affordable home furnishings" - a middle market established as a result of home TV shows and on line auction sites.
Auctions are held as frequently as once a month or as little as once a year, depending on the type of items being sold.
You send high quality photos of items directly to the houses. This would include:
- Close up detailing
- Manufacturer's marks
- Letter disclosing information and history about the item, addressed to curator.
- The auction house will give you an estimated fair market value and propose a reserve amount which is the minimum bid they will accept.
Charges include:
- Insurance
- Cost of producing a color catalog photograph
- Packing and shipping
- Commission (10-20 % of the final selling price)
- If the item does not sell and it is stored until the next auction of like items, you will be charged for storage
Examples of this type are: Pacific Galleries: www.pacgal.com and Seattle Auction House: www.seattleauctionhouse.com
ONLINE AUCTIONS:
Ebay is an example of an online auction. Others include:
www.auctionfire.com
www.webidz.com
Get advice from someone who has experience selling on line.
Start by selling an inexpensive item first to get your feet wet.
The challenges to online selling:
- Learning how to list an item
- Requires excellent organizational skills
- Is very time consuming and requires a commitment
- Fixing a starting price
- Factoring in shipping costs
- Writing detailed descriptions to avoid buyer confusion and frustration
DROP SHOPS:
Professional online auction trading assistants or "virtual consignment shops". These have become so popular that Ebay now has a formal training program for trading assistants. There are more than 25,000 people registered worldwide.
Local contact: Bidadoo Auctions (Seattle) www.bidadoo.com
Drop shops charge a fee and a percentage of the total sale. They will help you:
- Photograph the items
- Write selling descriptions
- Research and price the items
- Place it in an appropriate category
- Monitor the auction
- Follow through on the sale
CONSIGNMENT SALES
There are 2 kinds of retailers:
- Resale shops. They buy outright from individuals (pay cash upfront)
- Consignment. They accept merchandise on a consignment basis and pay a % of the selling price when the item sells (usually 40-60% of the selling price).
They will keep merchandise from 60-90 days.
· Tips to consider:
· Find out what the shop specializes in so you won't waste your time.
· Make sure items are clean, in excellent condition, clothes on hangers, furniture polished, shoes shined, etc.
· Take clothes in current season.
· Check out the store before you go to see what they are selling and what prices are.
· Find out the details of the consignment policy - some will donate items to charity if not claimed at the end of the consignment period, some will mail checks, some places you have to pick them up, some places will pick up items, others you are responsible to deliver.
SELL DIRECT:
This includes newspaper advertising, online community boards like Craiglists (www.seattle.craigslist.org) and Seattle Back Page (www.seattle.backpage.com), local community boards, online list serves or neighborhood chats. If you want to sell an item or items quickly, this is a good choice.
The downside to sell direct is fielding inquiries about the item and making arrangements for interested parties to view the item which they may or may not actually purchase.
Your
Life in Order:
