Daryle Lambert: How Do House Sales and Garage Sales Work?

Garage Sale thanks to www.flicker

I enjoy giving the members of the 31 Club information that will help them in their search for treasure. I received an email asking how house and garage sales work as well as what is the best way to advertise? This information will be very useful as you go out into the field because there are strategies that you can implement

First, let’s tackle the house sales and their history. In the beginning, these sales were conducted to help the home owner liquidate holdings before moving, but this has all changed. In fact, at most house sales, the conductor is running a retail sale and often I find their prices higher than I can buy at auctions. They also are beginning to take the better items to list at auctions where they receive a commission on the completion of the sale. I once asked a conductor of a sale why I was there if all the great stuff had gone to auction?

These house sale conductors used to be a service to the home owner. They charged a fee to liquidate the home furnishings. Today, however, they run the sale as if they were a retail shop because they get a commission on the final value sales. This used to be where most antique dealers got their merchandise to resell but this is getting harder and harder as the sales ask retail or more for their offerings. About the only way that I can buy at a house sale today is if they make a mistake and don't find the pieces I am interested in listed in a price guide or in auction results. Be forewarned that the conductor is often also selling his or her own items at these sales.

Most house sales reduce their price by 50% on the second day and this is when I attempt to buy items that I think are over priced if they are still there. I don't leave bids because they are often used against me by showing them to others who will then give a higher bid than mine. It is perfectly okay to ask if they will take less than their offering price on the first day but I find that few reduce their prices on the first day.

The garage sales are a different matter. You will see mostly low end items there that you must search through but now and then you will come across a treasure. The people conducting these sales are usually less sophisticated than the house sale conductors but you may have to travel quite a bit to see several of these sales to be successful. The prices will be more reasonable because the seller is the owner and there aren’t any commissions to pay.

At each type of sale, get there early because dealers will go to garage sales far before the listed time for them to start and unfortunately the sellers often let them in. If you arrive at the time posted all the bargains are gone. The same works for house sales. Most conducted sales accept lists that are kept by someone who arrives early and unfortunately there are often many names put on these list that haven't come and signed in themselves. Most lists for good sales start as early as 3 or 4 in the morning. I have spent the night in a driveway to be first in line myself. Believe it or not it was well worth it and I made several thousand dollars for that night’s sleep I missed.

I think that I got carried away today so the advertising blog will have to wait until tomorrow.

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Ripe Market for Picking Treasure at Local Auctions and House Sales

1870 Liberty & Vienna Railroad Stock Certificate sold on eBay for $152.50

This market is ripe for picking and you, members of the 31 Club, are making my mouth water from the lists of auctions and estate sales you send me to review. Everyday these lists are coming in, and I just wish I was there to enjoy the feasts you are partaking of. In these markets, if you spend your money wisely it will be a great winter for you. I do have to caution you, however. In your enthusiasm, don't fail to do your homework and attend previews. Missing any damage on pieces can be quite costly and can take a large percentage of your profits.

I took a look at an auction list one member sent me and wanted to hop on a plane to join him. There was a wide variety of items represented in this auction, but I quickly narrowed it down to under twenty. I figured if I were in attendance and only purchased half of these twenty items my night would have been well spent with good gains.

There were some wonderful items on the list but nothing that would draw a great crowd. This is the type of auction that you might sneak up on and find a true bargain. There were two prints by Jessie Wilcox Smith and these made me think of the time my friend, “Little Jimmy” purchased what was supposed to be a print, for $40, and then resold it sold within a few months at Treadway Gallery in Chicago for over $22,000 because it turned out to be an original.

Just to give you a feel for this auction, there were prints, books, toys (with many Hot Wheels), jewelry, rugs and one lot of over 100 piano rolls. I pick out the piano rolls as one of the items I’d bid on. Why? Well, if you were with us in the beginning of 31 Club, you might remember that one of our very first members made her first $80 investment on several boxes of vintage phonograph needles she found at a garage sale. Many would have thought that was a foolish purchase until they saw the money she made selling them on eBay. Those needles brought in over $800. When you buy in bulk, it will often pay off very well, as it did for Cecil on the lot of vintage Railroad Certificates he purchased.

One of the best buys that I have ever enjoyed was when I purchase over 500 Royal Doulton items at one time. The $15,000 I paid seemed to be a huge amount of money, but when you spread it out over all the items I had definitely paid less than the 25% rule we go by. So if the average price was $30, and I made at least four times my money, you do the math. I think you’ll see why I was smiling as I left with my truck full of Doulton.

At local auctions and house or estate sales, be sure to keep your eye on items that have a high value in the market place, but in these selling venues, won't bring the value they truly deserve. This is when you step up to the plate. And remember our Associates Program if you find high quality items that are beyond your budget. Members who are using this program when spot high quality items are able to make money when they call the Club and we negotiate, purchase, and resell it. I have found that at local auctions and house sales, most people have a pain threshold of about $1,000 and when the price goes above that, the crowd quickly dwindles. This is the game you want to play as soon as possible.

The office doors are open again, so I’ll be waiting for those questions and suggestions that will help make this one of the largest enterprises around.

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