In spite of what their similar names may suggest, estate auctions and estate sales are two separate affairs. Making sure you choose the right one is important, especially if you are in the market to draw in as much profit as possible. In order to make the right choice, it is best to know the difference between an estate auction and an estate sale to prevent making a mistake that could potentially leave you with little to no sales.
How Items are Sold
When it comes to the difference between an estate auction and an estate sale, it all boils down to one thing: the manner in which items are presented and sold. With an estate sale, however, the risk of getting ripped off, haggled with, or completely ignored is much higher.
We have all been to a garage sale at one point or another in our lives. Most people who attend garage sales are looking for bargains or freebies, which while understandable does not really bode well with the hopeful seller, who would like to earn at least a fraction of what they originally paid for. The reality is that a buyer at a garage sale will not want to pay at full price. If that is not worrying enough, then the seller’s concern of not receiving any more offers will do the trick, thus putting pressure on the seller to cave in and settle for the buyer’s suggested price. Not only is the seller losing money and control of their own item, but it also makes the time and effort they put into the garage sale seem pointless. The same thing can be said for an estate sale.
With an estate sale, there is no promise or surefire guarantee that all items will be sold (and at a fair price, too). An estate auction not only offers a better chance at selling, but the circumstances surrounding the event settle more in the seller’s favor.
Benefits of an Estate Auction
The items sold on online estate auctions are typically worth more than the items you would find at an estate sale. The items also have the ability make a greater reach, as an online platform is something that is available to people world-wide rather than a secluded area. Additionally, the audiences viewing the auctions are in completely different mindsets. They are not penny pinchers who may or may not know the value of an item, nor are they people who want to purchase an item for a low, practically nonexistent price.
On the contrary, most individuals who look into estate auctions know exactly what they are getting into and are more inclined to pay a solid price for something they are after. It certainly helps that the items at estate auctions are intentionally priced low before the bidding begins. Combine that with fair market value between the buyer and seller and you are good to go.
Competition serves as a driving factor at estate auctions as well. Buyers will engage in ‘bidding wars’ to try and outbid a competing price, driving up the thrill of the auction and guaranteeing a profit for the seller. It is the ideal solution for sellers who have been trying to clear their stock for a while, sellers who are relocating or moving, or sellers who are no longer in a position to have a furnished business.
In conclusion, there are multiple reasons as to why an estate auction is the superior choice, but it can easily be broken down into three simple truths: a better audience, higher sales, and more money in your pocket at the end of the day.