Jon.... Please answer this question for me.
Why would somebody have an estate sale instead of an auction? I honestly don't get it.
Sell your items for less money and have stuff left over at the end. OR, sell your items for more money and the entire house is cleaned out that night.
Having an estate sale seems like lose-lose for a seller.
You mentioned if you see an item sell for $100 on ebay, you would price it at $50 and probably sell it for $25. At auction, it would bring anywhere from $50-100 depending on the item. And depending on who is at the auction that day, it could go for $125.
Estate sales just make no sense to me. Especially if the seller has truly desirable items.
Several reasons off hand.
First...In an auction, each item will have...what....one or two minutes max to have a chance to sell? I'm talking average estate auction. An estate sale gives it, on average, two days to sell. Think about a bedroom or dining room set at an auction. Most people don't go to auctions to buy stuff like that (unless it is a furniture auction), they are looking for antiques, collectibles, guns, jewelry, etc., so there isn't going to be too much interest in big items, and if the auction is held at the estate property, where most are, I don't think most average buyers will be prepared to haul off large items that far from there home.
At an estate sale, most of our customers are local, and might be looking for furniture as much as anything else, and are close enough to their home, to have it delivered, or pick it up themselves. Also...there is much more time to look things over, and make a decision. We have workers there to help them out, and in some cases, talk them into buying something.
At an auction, a lot of smaller items are lumped into box lots...that often times sell for cheap if nothing too spectacular is in the box. At an estate sale most things are priced individually, and will bring more in the long run when added together.
We have very little left over at our sales...and most times the owners are shocked at how much money they end up with after the sale. (especially the ones that got "quotes" for someone to buy out everything!)
I would think that most auctions that are at the property will sell most everything, but we all see some stuff come up with no interest, and the first $1 bid gets it and they move on. If the auction "house" hauls off the items for sale, they are probably only going to take the stuff they think they can sell....the owners are still stuck with leftover junk to get rid of.
When we do a house, we are given they key...we go in and clean, price, display, and sell almost everything, have the leftovers picked up by a charity, remove all of our tables, lamps, fans, supplies, tablecloths, etc., and vaccume the house, sweep the floors and garage, wipe down the surfaces, and in most cases, the house is ready for the walk through with the new buyers at the closing...saving the owners additional money and problems.
So in one week, in most cases, the house went from full, to empty and clean, and what didn't sell, was donated for a tax right off (at full price) for the owners, and they never had to do anything past signing a contract and handing over the keys. That seems like a win-win for them.
No auction will be able to do that in a week...even if they haul most everything off in one day....it will take a lot longer to unpack, sort, put a number on it, enter it into their database, maybe put it in a catalog, advertise it for a few weeks to get buyers to show up, then have the sale, sort out everything, and finally take a much larger cut, and send off a check....It just doesn't have that fast of a turnaround with a legitimate estate auction.
I've been to several estate auctions here in Florida....some done really well (Higgenbotham is awesome), and some where they cost the owner thousands of dollars. One in particular would shut the bidding off of something and move to the next item while three or more bidders were still trying to bid! People would have to yell them down, and we had to get the owner to talk to the auctioneer several times to slow down and take all the bids....Then...he had his elderly aunt taking the money, and she was WAY undercharging everyone when they cashed out. The owner had people coming up to him after the sale and paying the extra amount they owed straight to him! There are bad apples in every business.
That item we list for $50 might sell for $50...or $25...or not at all...same goes for an auction, and although it might sell for $125 at an auction...it might also sell for $5-$10 at an auction, with a larger percentage taken out.....
I've bought antique guns at auction for $80 that were worth $1,000.....and one for $500 that was worth $2,500....Anytime we have guns at an estate sale...we can get 100% full retail for it...it's just one of those things....people will argue over who was first in line to be able to pay full retail for a gun they could get anywhere....it's just one of those things.
I've been outbid at an auction by an internet bidder for a gun I could see was a reproduction, but they thought was original...I imagine they weren't happy when they got it! There is good and bad in estate sales and auctions.
If a seller has truly desirable items....they will sell. We can put current, retail, prices on something, and if a collector wants it, they will buy it, if not, it will go for a little less on bid, or half price they second day, bought by a collector or reseller, or be a tax right off after the sale...but it will be gone at the end, one way or another.