What do you need to know about selling at auction?

One post could never explain everything a person needs to know about selling items at auction, but in this post we want to give some basics. The best way to have all your questions answered is to talk to a reputable auctioneer in your area.

I've been a licensed auctioneer for almost eight years. I  have worked rings, clerked, cashiered and done set-ups for many of the auctioneers in my area as well as conducted my own auctions. I've seen thousands of items sold through auctions.  I've seen things bring prices far above what the same thing could have been bought new, and I've seen things sell far below expectations. Some of that is out of the control of the seller or the auctioneer. It's just a reflection of who happens to be at a particular auction and what they want to buy. 

Whether you have a large estate to sell or a few items you want to consign to auction, many of the things mentioned in this post will apply. The first thing you want to do is to work with a reputable, licensed auctioneer if your state requires licensing. Most states require a license and continuing education to maintain that license. Furthermore, there are specific laws and requirements that apply to auctioneers meant to protect both the sellers and buyers. Yes, there are people conducting auctions who are not licensed and will probably do so until they are caught. When you trust your valuables to them just remember you are already dealing with a lawbreaker. It's not improper to ask to see the license of the person you are considering to do your auction.

You will want to have a signed contract listing all the terms of the auction. This includes the commission that will be charged, any expenses that will be the responsibility of the seller, any upfront charges the auctioneer might charge, the approximate date of the auction, and the terms of the sale. If there is anything in the contract you do not understand, ask. You should receive a copy and the auctioneer will keep a copy.

Auctioneers will normally sell the items in the condition in which they receive them. There is too much to do in setting up an auction to wash the glassware that's been stored in the attic for the past 12 years. If your items are dirty, clean them before presenting them to the auctioneer. Having your car detailed will usually result in a higher price. Same is true with your newer riding lawnmower. If your car won't start, find out why. Often, it's no more than needing a new battery. Ask yourself if you would buy this item in the condition it's in. Chances are, if your answer is no, neither will anyone else.

When selling an estate, don't throw anything away until the auctioneer has seen it. An executor recently asked if two particular items would see. She was planning on throwing them into the dumpster. Fortunately, I stopped her as one of them brought $180.00 and the other one sold for $300.00. People can throw thousands of dollars in the dumpster when trying to clean out an estate because they don't know what other people collect or find valuable.

At the same time, not everything is a treasure. Most of us have an abundance of junk lying around the house and outbuildings. However, it's best to let the auctioneer determine what should be sold and what can be tossed.

Auctions have changed a lot in the past few years. At one time, almost all auctions were conducted on the property of the estate. I find that still often results in higher prices for items, but sometimes it's not practical. There may not be adequate parking. Some HOAs do not allow auctions in their areas. The property may be too small to have a good set up. Today, many auctions are conducted in auction houses where the items are displayed and advertised. One doesn't have to worry much about the weather since it's inside. Most auction houses are heated and cooled to keep the buyers comfortable. Many of them offer food to make the auction more pleasant.

Since the pandemic many auctioneers have switched to an online format. Most have found their sellers receive higher prices for their items since they are being offered to a wider audience. You will want to discuss with your auctioneer which of these formats would work best for the items you want to sell.

In a later post I'll discuss what is currently selling and what items are not in demand today. Be sure to follow this blog, especially if you think an auction might be in your future.