ESTATE SALES vs AUCTIONS: WHICH ONE IS BETTER FOR YOU?
You just inherited Mom’s house……… and everything she has collected all these years.
Now you are tasked with many things, plus the emotions of your recent loss, and now it is up to you to determine what to do with it all.
You may want to just sell the house for the best possible outcome, as you might live in another state, and then you can move on.
But what do you do with all her belongings before you can sell the house?
DON’T WANT TO BE BOTHERED WITH DOING IT YOURSELF? CALL NOW!
When it comes to liquidating someone’s estate, two common options are Estate Sales and Auctions.
We hold estate sales for inherited property.
Both methods can effectively convert personal property into useable cash, but each has its own unique advantages and disadvantages. Understanding these differences can help you determine which approach is best for your situation.
Pros of Estate Sales
Direct Interaction:
Buyers can see and touch the items offered, which can lead to higher prices for certain types of goods.
Flexibility of pricing:
Prices can be adjusted throughout the sale based on demand and negotiation.
Comprehensive Liquidation:
Most items in the home, from furniture to kitchenware, can be included, leading to a more complete clean – out.
Many times, we have held sales for different homes and have sold everything from a single screwdriver to toilet paper, and even cars.
If it is there, we price it to sell!
Longer Sales Period:
Estate Sales can last one or two days, or in some cases, many days. It all depends on the size of the homes contents and how much is offered for sale.
Emotional Connection:
This is usually done before the doors open to the sale. It is a time when family members or close friends have an opportunity to purchase items that may be sentimental to them.
In all cases, family are not allowed on the sales days, as it could detract from an item selling or not if someone is there that has an emotional value on an item being sold.
Cons of Estate Sales:
Time-Consuming:
Preparing for an estate sale, including organizing, pricing, and advertising, is labor intensive and time consuming.
Sometimes it can take two weeks to organize, clean, and display the items in an orderly fashion, and then remove broken items so they don’t distract from the actual items being offered for sale. This all takes time and effort.
Market Fluctuations:
Even the best planned sale may be affected by weather, local events, or economic conditions.
Our marketing and advertising help, as well as the pictures we provide before a sale can help, but a major holiday or event in the area can dwindle the amount of people coming to the sale.
Auctions:
Pros of Auctions:
Potential for Higher Prices:
Competitive bidding can drive prices higher, especially for unique or valuable items.
Expert Valuation:
Professional auctioneers that hold auctions for furniture and households can provide accurate appraisals and can attract serious buyers if the estate holds items of this sort.
Wide Reach:
Online auctions can attract bidders from around the world, which could increase the potential buyer pool.
Less Personal Involvement:
The auctioneer handles the entire process, reducing the emotional strain of family members.
Cons of Auctions:
No Guarantee on Prices:
While bidding can drive prices up, it can also result in items selling for less than expected.
Commission Fees:
Auction houses charge a commission fee, which can reduce your overall profit.
Less Control:
Sellers will have less control over the final sale price and the selling process.
Limited Time for Selling:
Items are generally sold in a shorter timeframe, which may not be ideal for all types of goods.
Complexity:
The auction process can be complex, which could require professional guidance and expertise, resulting in more costs.
Which One is Better for You?
The decision between having an estate sale or an auction depends on your specific circumstances and goals.
Consider the following factors to determine that.
Type and Value of Items:
If you have many high-quality valuable items or collectibles, an auction might yield better results. For everyday household items, an estate sale might be more effective, especially if it is of the same caliber that many other people have in their homes too.
Time Constraints:
If you need to liquidate quickly, an auction could be faster. Estate sales may take longer to organize and run.
In many of our sales, we get called after the house becomes listed or sold, which cuts down on the time it takes to have a sale, and we are then forced with a time limit to do our part in setting up a proper sale.
Emotional Considerations:
Estate sales offer a more personal touch, which can be very important to family members, in which we display the persons life in a way that gives feeling to the items being offered for sale.
Market Conditions:
Research the local market before calling either one to hold a sale. Estate sales may do better in certain areas than others, while an auction, in person or online might be more successful in other markets.
Beyond the basic pros and cons there can be other additional factors to consider when deciding on which one.
Consider these:
Community Involvement:
Estate sales often draw local buyers who are familiar with the community and may have a vested interest in what is being sold. This could lead to a more positive selling experience.
Many of the sales we do, attract the locals nearby. Some knew the person or had visited them and want a keepsake they remembered. Others are just nosey to see what is being offered and just may purchase something for their home.
Presentation and Staging:
How items are displayed can significantly impact sales. Professional estate sale companies can expertly stage items to make them more appealing to buyers.
Sustainability:
Estate sales often promote the reuse and recycling of household items, which can be an environmentally friendly option. Selling locally reduces the carbon footprint associated with shipping items outside the area.
While a bicycle may just look like a bicycle, an artist may re-purpose it into a table, or pots and pans could become flowerpots or figurines!
Additional Factors for Auctions:
If you need a specific type of auction such as an estate auction or specialty items, selecting the right type can also maximize profit.
Expertise:
If the auctioneer is skilled at your type of auction, they can significantly increase the success of the auction just in the way they present the items.
Dynamics:
The competitive nature at auctions can create a sense of urgency and excitement and drive the prices up. It can also be unpredictable.
Deciding between an estate sale or an auction requires careful consideration including knowing the type and value of items, emotional readiness, and logistical considerations.
It is up to you to decide whether to have an estate sale or an auction, we are here for you if you need the estate sale.
Both methods have their unique advantages and disadvantages, and either can convert the sales of these items into cash.
Now you have some idea of what to expect from either.
Consider calling us for more information on what we can do to help you, or, to hold a sale for you when you need one done.
727-487-1753