When planning an estate sale or auction after a loved one passes, you might become confused about the critical differences between an estate sale and auction. Here’s a guide on how to tell the difference between the two.
Estate Sales
Also called a garage sale or yard sale, an estate sale is an event that organizes, prices, and sells items from one’s property. Whether it’s a home or other assets that a loved one’s inheritors don’t want, it all goes into a sale that’s usually organized by the family or an estate sale company.
The Good and Bad of Estate Sales
It’s tricky to plan an estate sale, especially when it comes to cleaning out the estate before selling anything. There are benefits and setbacks to an estate sale. For instance, a professional company can handle an estate sale and will then pay the family within two weeks of a deal.
However, there are drawbacks to an estate sale. For instance, a company may say they will pay you back in a short amount of time, but they may take a higher percentage from the sold items. When selling through a private sector, always do your research.
Also, you risk some sellers stealing belongings, so try and do research on the company and look at reviews before hiring anyone or even doing the sale yourself.
Auctions
You can combine an estate sale and auction, but it’s better to separate them to keep items organized. An auction is an event where an auctioneer places the selected item on a stage and a large group of people takes turns bidding on that item. Essentially, an auction is like eBay but in person. When someone bids the highest amount, the item goes home with them. It doesn’t stop there, as a percentage of the profits goes to the seller, and the auctioneer who hosts the auctions gets a small commission.
The Good and Bad of Auctions
The greatest thing about auctions is that the starting price of an item is always set at market value. For example, a piece of jewelry from an older Tiffany’scollection may start in the hundreds and go up depending on the item’s age, condition, and current demand. Additionally, families that select an auction tend to get more money once the auction concludes.
The only serious drawback is that auctions take a long time to finish. Also, it would be best to have the items ready before you start an auction so that the auctioneer can price and evaluate each item.
Estate sales and auctions are both great options, and despite the key differences between an estate sale and auctions, what to choose is up to the seller. As a seller, pick the best approach to ensure your loved one’s estate is in the right hands when selling their assets.
