If the is anything positive to be found from our recent shelter-in-place experience, it may well be that we came out of it much more organized than when we went in! Garages are free from unused tools, closets are de-cluttered and the attics of America have never looked better. But now we are faced with a new dilemma: What do we do with all of our unwanted things?
When I am called on to assist a client with down-sizing, my go-to source for liquidation is often an auction. From late model appliances and flat screen TVs to family heirlooms, if your items are worth money, an auction is the fastest, easiest and usually the most profitable route to go.
As the local auction facilities are filling up with post-quarantine treasures, we are seeing a great influx of consignors and attendees who are experiencing an auction for the first time. To the novice, the auction experience can be a bit overwhelming. So, before you go, let me share with you some basic terms that may cut down on the confusion.
Buyer’s premium — A buyer’s premium is a percentage of the winning bid that will be added to your total at check out. It is now charged by most auction houses and is used to cover administrative expenses. The standard percentage in this area is 10 percent. Make certain to allow for this charge when you are bidding so there are no surprises at check-out when you believe you have spent $500 and you are charged $550. Fine art auctions sometimes charge as high as 15-20 percent so, if in doubt, ask before you bid.
As Is — Items are sold in the condition in which the auction received them. Remember this is often used merchandise and it is the buyer’s responsibility to make certain it is in good condition. Many auctions will attempt to point out if something is damaged, but ultimately it is your responsibility.
Choice Item — It is very important to pay close attention to the items being offered for bidding. There are times the ring men will offer an entire table full of items which can be purchased for one price. Other times there will be a group of items set up on a table that the auctioneer will call as “choice item,” in which case you are bidding on the individual pieces. This is often done with collectibles. If you are the winning bidder you may take one item or several, but you will be paying your winning bid per item.
Absolute — This means that all items on the auction will be sold to the highest bidder, no matter what the top bid.
Reserve — There are some auctions (cars, art, etc.) that will have items with a reserve. This means the item must hit a certain predetermined number or it will not sell.
Consignment Percentage — The auction makes its money by charging the seller a percentage of the total proceeds of the sale. Make certain that the percentage you are quoted is “all inclusive.” While some may offer you a smaller percentage than others, they may also add on a pick-up fee, a per item ticket fee, an advertising fee, etc. The lowest percentage is not always the best deal so make certain to ask if there will be any additional charges not covered by your consignment percentage.
There is an adrenaline rush that can set in when you start bidding that can void the common sense gene. I have on more than one occasion watched a buyer try to cram a sofa into a hatchback. Remember, you are responsible for the timely removal of anything you purchase. The majority of auctions do not deliver and if they do there will be an extra charge. Until next time . . . Linda
Linda Kennett is a professional liquidation consultant specializing in down-sizing for seniors and the liquidation of estates. Linda is not taking clients at this time.