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.