Do you need to liquidate an estate, but you don’t understand the methods used? Do you want to find out which method will bring you the most amount of money in the shortest time? Or, do you simply want to know how an estate sale and an estate auction work? If this is what you look for, then you are in the right place. In this article, we’ll explain how an estate liquidation works and what are the pros and cons between a sale and an auction.
The process of estate liquidation
It’s the process you use when you need to convert into money all the items in an estate. It can be needed for diverse reasons, but the most common ones are the selling of items from an estate put out for sale, when the owner needs to move and he can’t take all the items with him, and when the items from the house of a deceased relative needs to be sold.
It can be divided in a few different processes. The first one is the selection of items needs to be sold. The second one is the appraisement of all of them. And the last one is the choosing of a method through which to sell them and how to implement it. You can to do everything yourself or hire professionals, like out company, to handle everything for you.
The first step is the selection of items you want to sell. Most of the time, our clients don’t want to sell every single item in an estate, that’s why the professionals we have, help them select only the items they want to sell. You can do this yourself, or if you need to sell most of the items but you are too emotional attached, you can let our professionals do the job by themselves.
The second step is the appraisement of the items that you want to sell. If you don’t have expertise in this field it’s highly recommended to let professionals do this task, because you can’t always trust the information you find online and you will appraise the items subjectively.
After all the items are correctly appraised, there are 3 methods, generally, used by firms like ours:
– An estate buyout, where the firm will make an offer to buy all the items at once. This is the fastest method, but the offer will be lower than the potential money you’ll get with a sale or an estate auction. We use this method mainly for our clients that urgently need the money or when the total value of the items is small and the time needed for other methods is not worth it for our clients.
– An estate sale, where the firm will organize the estate for a sale. In this method, our experts will write a price on every item and they will arrange them in the most suitable way to be sold. A couple of days will be used for advertisement, to attract potential buyers, and the sale itself will take one to three days. Everything would be finished in a week. We have the option to sell your items online on our site, but this decision will be taken by you.
– An estate auction, where the firm will organize an auction. The items will be sold one by one. We organize auctions online because they generally attract more potential customers from farther away. The advertisement period we suggest will depend on the value of the items.
Every method has its pros and cons and we always recommend the method with the highest potential profit for our clients. Depending on the circumstances, a sale may be more profitable than an auction, even if it needs less time. We’ll analyze both methods so that you know how to choose the method that fits your situation.
This method is used when the number of items is big and their value is low to medium. In this case, an auction won’t attract many customers, and the profits will be much lower than in a sale. Although not as fast as a buyout, this method is much faster than an auction, it only takes a few days and you get the money.
If the individual value of your items is high, then a sale is a bad idea because your items would be sold for a much lower price than auctioning them. And you should understand that there will certainly be items that no one will buy, after every estate sale there are some items remaining. Sometimes, we offer to buy out those items, but you should not take this as a certitude and you must understand the risks.
It’s profitable only when there are high-value items that can be used as an attraction. Through a longer period of advertising, more bidders will be attracted, and the price of your items will be boosted. But, because of this requirement, it’s a bad idea to use it without valuable items, because the bidders won’t be excited over them and most items will be sold for much lower than their actual value.
The time an auction needs to be successful is much longer than an estate sale. We choose the exact period considering the value of the items, the higher it is, the bigger the number of days we’ll recommend. We’ve done this many times, and we approximate the period that will maximize your profits.
Why you should trust us?
How do you know we act in your best interest? Because our fees depend on the amount of money you make. Our commissions are percentual and we get paid after the work is done. So, the more money we help you make, the more we get paid.
You make the most important decisions and we adapt our strategies to them. For example, if we suggest a time-frame of two weeks for an estate auction, but you can only wait nine days and decide we must finish everything in that period, then we will adapt our strategies to make the most amount of money in that timeframe.