Estate Liquidators Finding New Channels of Distribution

 

In addition to the rise in the number of estate liquidators, developments in technology have enabled new channels of distribution for the sale of personal property. Estate sales are no longer confined to on-site locations, some are now being held online.

Estate liquidation is about finding buyers to purchase what is usually a broad range of personal property. An age-old problem for estate liquidators has been advertising a sale to attract enough buyers or foot traffic to ensure all items are sold. But not just sold, it’s also about selling them at the greatest value for the benefit of the executor or seller of the estate. With the advancements in technology and online resources, liquidators are able to sell items both on-site and online, opening sales up to a much broader pool of buyers.

Estate Liquidators Online

Online sites such as eBay, Craigslist, and Etsy allow sellers to post items online for sale. These online channels provide broader distribution to a greater audience of buyers, circumnavigating the challenges of local buyers needing to be within driving proximity.

Consider an example. Let’s assume items at estate sales on average are sold at $0.10 – $0.30 on the dollar (this of course varies greatly on the item). If a camera was once purchased for $200, then it would likely be sold at an estate sale for $20 – $60, depending on condition, model and make etc. But more importantly the price is determined by the price set by the estate liquidator and whether there are any interested buyers. Ultimately, the local market of buyers determines the value. As the estate sale progresses and items go unsold, estate liquidators are forced to reduce prices. So many sales are constrained by the small pool of local buyers.

If sold online though, that same camera could fetch a higher price because there are likely more buyers present. Distance becomes less of an issue. On the flip side though, as online sales channels continue to gain in popularity, items will become more accessible therefore driving down prices with added supply. It should be noted that a reduction in prices is primarily expected for less unique products. More unique, harder to find collectibles and antiques will continue to command premiums for their scarcity.

Estate sellers or estate liquidators should always consider different options for selling personal property. Depending on the item, some channels may be better suited than others.

Different Estate Sale Options, Which is Right for You?

 

There are a few different estate sale options when liquidating an estate. Before hiring an estate liquidator, consider your different estate sale options and consult with them to determine which is the best fit for you. Educating yourself on the different options will provide for a more thoughtful discussion between you and the estate liquidators.

An estate sale is about selling all remaining personal property in the home. This of course is after removing any items you want to keep. The value and quantity of personal property, as well as the location of the estate will dictate which option is most suitable. An experienced estate liquidator will gladly provide the proper guidance to ensure all items are sold at the best prices.

Estate Sale Options to Help Achieve Your Estate Sale Goals

On-Site Estate Sale

What: An on-site estate sale is exactly as it sounds. The sale occurs on location in the estate. All contents in the home will be sold, excluding any items the family has removed from the home. A professional liquidator will typically appraise, clean, organize, stage, price, advertise and then sell all the items.

When: This type of sale is most suitable for those with estates, either homes or condos, full of stuff. In order for an on-site estate sale to occur there must be enough personal property to sell. Following the appraisal, estate liquidators will determine whether there is enough stuff to sell to attract an adequate amount of buyers. The location in this case is also considered. If the home is in a low-traffic, hard to get to area then alternatives will be considered.

Off-Site Estate Sale

What: An off-site estate sale is also exactly as it sounds. The estate sale occurs at an off-site location. Some liquidators own stores or warehouses suitable to stage the personal property off-site.

When: Off-site estate sales are often utilized if the estate is not located in a prime location. By moving the contents of the sale to a more favorable location, the personal property becomes more easily accessible to a larger group of buyers. Off-site sales usually occur when there is a manageable amount of stuff that can be reasonably transported. Homes packed with stuff makes moving costs off-site prohibitively expensive.

Paired Estate Sale

What: Paired estate sales can be either on-site or off-site. This type of sale is a hybrid, where items from one estate are paired with another to increase the size of the sale. It can make the estate sale process more efficient for all parties, the sellers, estate liquidators and the buyers. Some estate liquidators run multiple estate sales week to week, so by pairing estate sales together they can sell more in a shorter period of time. Also, by including items from another estate, buyers are more likely to find something that piques their interest. Sellers benefit by having their items sold sooner and to potentially more buyers.

When: Paired estate sales sometimes occur when two or more local estates have a modest amount of contents with value, but not sufficient enough to run a stand-alone sale. Or a if a large estate sale is occurring, a smaller estate could be paired with it to benefit from its popularity. A note of caution, tracking personal property sold at paired estate sales can be challenging and therefore discouraged by some liquidators.

Complete Estate Sale Buyouts

What: A complete estate sale buyout is when an estate liquidator purchases the entire contents of an estate outright. The liquidator quotes the estate seller a price for the full purchase. The contents are then removed in their entirety to an off-site location.

When: This type of estate sale typically occurs when an on-site sale is not preferred by the estate seller. Reasons to not want on-site sales range from urgency to move or just a desire to quickly sell and be done with it. Complete buyouts are similar to off-site sales, in the sense of location, but following a buyout the estate liquidator is free to sell the items however they please.

Partial Estate Sale Buyouts

What: A partial estate sale buyout is very similar to a complete buyout, but for only a select few items.

When: This type of sale occurs if the estate does not have a sufficient amount of stuff to run a full on-site sale. More specifically, there may be lots of stuff in the estate but with little to no value, so only a few items are cherry picked to sell. A note of caution, before participating in a partial buyout do your research on what your personal property is worth. You may discover you sold a few pieces to get them off your hands when it turns out they were worth exponentially more.
We hope this gives you a better idea of the different estate sale options. We did not address auctions, which could serve as a better alternative to an estate sale. It’s worth taking the time to understand the difference between an estate sale and an auction. Be sure to consult with your estate liquidator to determine which is right for you.