When does an auction outperform an estate sale?
The reason is simple as to why an auction will outperform an estate sale. Estate sales drive set prices down from day one and an auction drives prices up with no limit.
Most people who hire an estate sale company over an auction company do so because they buy into the misconception that everything will be sold at the marked price. Estate sale companies tag each item at a set "Market" price and the seller feels good that their assets will be sold for top dollar. The facts are this though; most estate sales are over a 3 day period usually Friday, Saturday and Sunday. On Friday the "tag" prices can and many times are negotiated down anywhere from 10% - 50%. On Saturday the prices are dropped down by the estate sale company usually 25% - 50% and negotiating a lower price is easier for the buyer.On Sunday the prices are dropped down by the estate sale company usually 50% - 75% and in some cases by up to 90% and negotiating a lower price is even easier for the buyer. In one case my wife and I walked into an estate sale and were handed a grocery bag and told "as much as you can fit into this bag for $1.00".
An Auction is quite the opposite.
An auction starts everything in the estate at a low "starting bid" and prices are driven up with no limit. An auction will almost always sell 95% - 100% of everything in the estate as opposed to an estate sale company that on average sells 60% - 80% at best. Estate sale companies are Not licensed or regulated by the government in most states an auction company is. Most Estate sale companies do not utilize a certified appraiser for valuation and many times is based on what is selling on eBay rather than an actual market study from a certified appraiser.
There are many other reasons to hire an auction company over an Estate sale company. The bottom line is your assets will get more exposure for a true market value from an auction rather than a good guess where prices are driven down by an estate sale company.
FR Liquidation & Auctions offers estate liquidation services with 2 licensed auctioneers and a certified appraiser on staff. If you are considering an estate sale contact us today to set up your FREE assessment.