Should you choose an estate sale or are estate auctions better?

An estate sale works similar to a garage sale. It should be used only when there are no high-value items to sell. If there are valuable items an auction it's better. Although a sale won't bring big profits, it's very fast. It's recommended for sales with no valuable items and those in a hurry.

Estate auctions work like any other auction. Firstly is marketing for some time to attract bidders, secondly the organization of the auction itself. It takes a longer period because it needs intensive marketing and it needs high-value items, but if done right it can bring big profits. 

There are some things you should take care of when you contract a firm to help you. For example, the contract has be done right, there should be clear benefits for you and the company should work in your best interest.

An estate sale is a fast process of selling all the material possessions that a dead person or a person that will be moving to another immobile. The professional company generally use a model similar to a garage sale where the primary goal is to be fast. It should be used only if the seller does not have high-value items and it's not looking to make a profit.  It's a painful process for the family of the deceased, that's why they are usually conducted by a professional or a firm, for a percentage of the revenues. 

Estate auctions are events in which valuable goods, like antiques or collections, are sold to the highest bidder. This model needs a larger period for marketing, to attract more customers using temptation of high-value items, that's why it's not recommended for those that are in a hurry. It could be used for general inexpensive items, but a total lack of valuable items won't garner attention and the final prices will be extremely low.

Time needed

Because it's focus it's speed, an estate sale will generally need from 1 to 3 days, with low extra time for marketing. Although it's a fast process the profit will be mediocre. Estate auctions are more focused on marketing, their primary target it's to attract a large number of bidders that will boost the prices. For that reason, it should have at least 1 week of intensive marketing.

Best items to sell

An estate auction will be effective only if it has some high-value items that will be used in the marketing campaign, otherwise, with general household items it will be much harder to garner enough attention and attract enough bidders. In consequence, the final prices will be too low to justify this method. It's not obligatory to only have high-value items, general household items can be used as a teaser, making the bidders more impulsive.

If all the items put out for sale are general household items it much better to use a faster model. Although the profit will be mediocre, there won't be too much risk and it will be extremely fast. So no time it's lost on excessive marketing. Although too little marketing may cause a need to discount items on the second and third days. 

Things to look out for

The sales model doesn't have any regimented standards to abide by, or  a code of ethics that they should abide by. You should only consider those companies that have more than 1 model, and make sure they have your best interests in mind.

There is the possibility of unfair contracts made to take advantage of you.  There are cases of one-page contracts that have legal loopholes.  they try to leave you legally defenseless. To not have that problem, make sure the contract is written by a professional, like an attorney, and it doesn't have those types of legal loopholes. One loophole that a contract can contain is the right of the professional or firm to retain the items that didn't sell.

Also, you should discuss and find out the promotion campaign they will make. The marketing cost will be paid from their commission, so make sure they don't try to reduce costs on the marketing campaign. You should be very sharp when you read the contract. The most important thing is to read and reread the contract at least a few times and go to an attorney to check it for you.

Resource Box: If you are uncertain which of the two models to choose for your sale, you should let the company advice based on the value of your items. You should decide between an  estate sale or go for  estate auctions . Carefully, take your time, don't rush.