Now or someday you may find yourself needing to sell the contents of a home – either a loved one’s estate, or your home if you’re downsizing or if you need to create space. In the case of an estate you’ve inherited, you’ll need to sell most or all of the items in the house if you plan to sell the home.
In any event, right now you probably to know whether an estate sale or an estate auction is the better method to sell what you’ve got most efficiently and for the highest amount. Each method of estate liquidation has its pros and cons, and which one is better depends on your situation. Sometimes a combination of an auction and an estate sale is ideal.
What works well in one area of the country may not work well in another area. My comparisons are based on my experience with over 25 years of selling estate contents in Massachusetts and throughout New England.
Benefits of an estate sale
The pros of an estate sale are that you can sell almost everything in the home, from antiques to dish towels. You may set a minimum price that you are willing to accept for certain items. A good estate sale company will notify past buyers and advertise your sale to draw as many people as possible. The company will also post signs to attract area passersby to your sale. An estate sale often is a good way to sell a significant number of items at once.
Drawbacks of an estate sale
The main downside of an estate sale is that you aren’t as likely to find buyers willing to pay as much for rare items (like antique paintings, coins, and estate jewelry) as they might at an auction. Estate sale items often sell below the prices that they are initially tagged. Prices may get decreased when a willing buyer makes a reasonable lower offer or prices are dropped after the item has drawn little interest. Estate sale pricing is more of an art than a science. The estate sale company needs to be very knowledgeable with pricing. If items are priced too low, potential profit may be lost. If they are priced too high, items won’t sell. Even when things are priced well, there typically is much that remains unsold.
Benefits of an estate auction
The biggest pro of an auction is that you have competitive bidding, which drives prices higher until they reach “fair market value” for the particular item at that point in time. Rare and valuable pieces may draw bidders from around the United States and even from around the world, resulting in strong prices. In Massachusetts, and many other states, auctioneers must be licensed and bonded. Consignors are also able to attend the auction and see what each of their items fetches.
See our page on 10 Best Types of Items to Sell at Auction.
Drawbacks of an estate auction
The downside of an auction is that often it isn’t the best venue to sell contemporary furniture and household items. Even more-desirable contemporary furnishings, household items, and collectibles may not sell as well at auction as an estate sale. If those sorts of items constitute the bulk of what’s in your estate, an estate sale may be the better way to sell all or most of them.
What’s best for you?
It depends on the circumstances. We often use a combination of removing more-valuable pieces for sale at our live auctions or online auctions, while selling other items at in-home or online estate sales for our clients. You probably won’t need to make an either-or decision.
As with any other time else you hire someone to perform a service, do your homework before hiring an auctioneer or estate sale company. Referrals from people you know are best but ask for referrals from the company as well. It’s very important that the person you hire is knowledgeable in evaluating your items. Check their credentials. How long have they been in business? Check to see if they are members of any professional organizations. As mentioned, Massachusetts auctioneers are required to be licensed and bonded. Also check to see if the company is insured. It is difficult when handling the estate of a loved one. The more information you have, the more comfortable you will be that you are making the right decision.
To discuss your needs and goals, and to get the maximum return for your estate contents, contact Central Mass Auctions today.
