Estate sellers and their customers share stories in today’s Business section about how tough the business is.
For consumers, such sales involve selling sentimental items at emotional times. For estate sellers, it’s tough balance — made worse in the recession — of pricing pieces to sell without families feeling as if they’re holding a garage sale.
Here are a few tips from local estate sellers and certification agencies that can make the whole process a little easier.
Commission rates
Most estate sellers work on commission and in some cases, it’s negotiable.
But local experts say that consumers should consider those rates a red flag. Currently, the going rate is typically between 30 percent to 40 percent, said Patsy Walsh, who has operated a local estate-sale business with her mother, Muriel Walsh, since the early 1980s.
Walsh and others said that anything lower would make it extremely difficult for an estate seller to make enough to pay off employees and other expenses. It may not be a deal-killer, but it’s something consumers should consider as they weigh options.
Moving costs
When Lee Miller received an invoice from estate seller Carol Jameson last November, she was surprised to see a charge of $525 had been deducted from her sale’s proceeds to cover moving. Of that, $375 was listed to cover two movers and labor to take the goods to another estate sale in Vancouver, while another $150 was charged for goods dropped off at a local charity.
Experts say that’s too much.
If you’re having an estate seller move any items out of the house, be sure the rate — whether by the hour or the weight — is clear in the contract. Same goes for any fees associated with cleaning the house after the sale or hauling away garbage.
Certification, good but no guarantee
As with many businesses, estate sellers often list their certifications and various licenses to help distinguish themselves from the competition.
Such information can be helpful, but only if it’s good information. Double-check those claims.
Check for a state of Oregon business listing or a city of Portland business license. An expired license may simply be an oversight, but experts say it’s also a sign that businesses may be disorganized. When talking with any potential service provider, ask whether they’re bonded and if so, who provides their insurance. Then write that down just in case.
The American Society of Appraisers‘ consumer site offers a search engine to check the names of certified appraisers in your area.
Assume the worst
Check contract wording about what happens if things go south. Some contracts don’t address it, so consumers can ask an estate seller what they typically do if there’s a dispute with a customer.
Be careful of wording that sets requirements of how problems are handled. For instance, Lucy Knopf’s contracts are quite clear about the procedure — and who’ll pay: “All fees, related expenses and costs of such arbitration shall be paid by the consignor regardless of outcome. All legal, collection and hourly compensation charges involved in any type of dispute with consignor or consignor’s agents will be paid by consignor without recourse or dispute option/promptly upon monthly billing.”
Again, such wording may not be a deal-killer, but it’s a good issue to consider.
The price is right
While the market is tough today, consumers are best off when they know the real — versus the sentimental — value of their items.
The American Society of Appraisers recommends that consumers be sure about what type of estimate they’ll get from an accredited appraiser. For instance, a fair-market value lets you know what items are actually going for, while replacement value is typically a higher amount for insurance purposes. The latter isn’t appropriate for estate sale planning as it can yield a considerably different value, the society said.
Get it in writing
Want certain prices on a certain items? Want the number of customers in your home limited throughout an estate sale.
Talk it over with an estate seller and if they agree, make sure it’s in the contract before you sign. Often, complaints revolve around something that consumers say they were promised. However it’s tough to reach a resolution if there’s no document proving that everyone agreed on that point.
Look for signs
Karen Rhinehart, who operates the online sales listing site Estatesale-finder.com, says that as much as 45 percent of traffic to estate sales comes from signs. A good rule of thumb, she said, is checking out how an estate sale operator sells their business on the street.
“If people have professional signs, they’re serious,” said Rhinehart, a Gaston resident whose site lists about 60 different estate sellers. “If they’re nice signs, they’re professionally done and those cost money.”
Have a complaint? Contact Laura Gunderson at The Desk.
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