Dangers of Choosing a Company Based on Their Low Commission

August 1, 2016 | Julie Hall

Everyone loves to save money, but cutting corners on some services is just not advisable. One such service is when you hire a professional estate liquidator due to the relocation of a parent, downsizing, or the loss of a loved one.

The emphasis here is on the word professional. The estate sale professional is one who has dedicated much time, care, concern, diligence, devotion, education, research, plus so much more to attain the skills required to conduct a successful estate sale for their clients. This professional works countless hours and endures many sleepless nights for their clients, constantly learning and navigating an ever-changing industry and dealing with an increasingly difficult public of buyers.

Conducting an estate sale is not just about organizing and displaying, nor as easy as it appears. Genuine professionals do it well and make it look easy, even though it is really very hard. They truly earn their commission because of all they know how to do, including how to maximize sale proceeds.

Saving those few dollars selecting the wrong company could end up costing you!

Consumers Beware

This industry is inundated with pop-up or fly-by-night companies that appear out of nowhere. While there are exceptions to every rule, we see the following often:

Many of them have little to no industry training, skills, or understanding of the scope of the work that lies ahead of them.
They often know little about today’s market and what items will sell for.
They often sell at very low prices and then depart.
Some don’t even price items or research the value of higher-end pieces.
Sometimes they leave a mess behind for the client to pick up and handle.
The sale proceeds are often quite low, because they didn’t make the effort to make the sale as successful as possible.
They may not pay the client in a pre-determined time frame or offer an accounting of what was sold.
To get the contract signed, they undercut with a low commission, claiming they will do the same things as their professional competitors, but will they?

PLEASE do not hire a company based on commission alone. Find out what the commission includes, research the company, and make your decision based on sound information and facts.

If the commission is very low, one must ask how they can afford the proper resources: enough staff to organize/display/watch the crowd effectively, security to minimize theft, advertising, appropriate prices, proper signage, social media, and more.

Lower commission can also bring lower effort. Unless it is a very simple estate sale, what normally suffers is quality:

Quality of care
Quality of service
Quality in research
Quality in diligent preparation

These qualities are attributes of a professional, not a bargain-basement business.

KNOW WHO YOU ARE HIRING! The time it takes to find those true professionals is time well spent.

Julie Hall, The Estate Lady®, is the foremost national expert on personal property in estates, including liquidating, advising, and appraising. http://www.TheEstateLady.com She is also the Director of American Society of Estate Liquidators®, the national educational and resource organization for estate liquidation. http://www.aselonline.com.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at julie@theestatelady.com.

The Many Hats of an Estate Liquidator

July 19, 2016 | Julie Hall

I first published this article on The American Society of Estate Liquidators® (ASEL) website in October 2014. I thought you’d appreciate the information as you select a professional estate liquidator to help you downsize or clean out a parent’s home. If you’ve already used an ASEL liquidator, I’d love to hear your comments on the many hats they wear.

Many Hats Estate Liquidator Many people are under the impression that an estate liquidator is someone who puts on glorified yard sales. Nothing could be further from the truth! Professional estate liquidators wear many hats on any given day with a common goal for their client as well as for themselves:

to maximize sale proceeds,
lighten the burden of our client families,
treat each other with respect, and
help our clients move forward.

In the process of doing so, we must possess a great deal of knowledge to guide our clients along the way. We don’t just organize and set up for a sale. We:

clean items that haven’t seen the light of day in decades,
tirelessly research these items,
make calls to private buyers that we know will be interested in a particular item or collection,
figure out the best way to set up to maximize the sale,
price items appropriately,
coordinate sending high-end items to proper selling venues,
coordinate all crews,
manage our clients, and the list goes on.

Often the client is not aware of just how much back-breaking work and time is invested before the door ever opens for the estate sale. We take 50, 60, 70 years of accumulation and sort through it, research it, clean it, organize it and sell it within a week or so. That’s amazing in and of itself! It is up to us to educate our clients so they do understand that we truly earn our commission and do our very best for them.

Below you find just a sampling of what professional estate liquidators engage in every single day, early mornings to late evenings, and seven days a week.

We have bled, sweat, and cried our way through some estates, and dealt with poor working conditions too. There isn’t much we’re afraid of; we tackle the task at hand like a linebacker.

We wear this challenging badge with honor because we love what we do, no matter how much we get beat up in the process.

Detective – We sort through years of long forgotten items that have been crammed in boxes and cubbies. Often family cannot find important papers (titles, Will) or a sentimental item, but many times we find them. We know where to look, have a good idea of where things could be hidden, and we know what these items are, or how to find out. This is the fun part!

Archeologist – We dig and dig and dig. By the end of the day, we are covered in dirt. We unearth one layer at a time searching for old artifacts and treasures. We handle carefully and lovingly the items we uncover which have value or meaning. This is painstaking, but necessary.

Magician – While it appears to the client that we made it all disappear as if by magic, we know the levels of complexity it takes to empty the estate. “Can you do a sale this weekend?” There is no magic. Only hard work, the ability to professionally multi-task, knowing the right people, and selecting the right staff.

Bellhop – Who’s carrying the family baggage; the client, you, or both? Stay focused and advise as necessary. Our ears are bent with family lore (and who did what to whom)!

Firefighter – Estate professionals put out fires every day, whether it comes from prospective buyers or the sellers, or anything in between, including the emotions our clients go through.

Police/Law Enforcement – We keep peace and order in these estates, enforce our ethical policies, “law down the law” according to the rules for how each sale should be run. These are in place to ensure a pleasant estate sale day, encourage good behavior, and keep the flow moving.

Counselor/Clergy – We listen, validate, encourage, support, and hear confessions and stories. It is part of our job to offer support, including emotional support within reason.

Accountant/Administrator – Pay the bills/employees, handle the contracts, handle brokering details, tally estate proceeds; we do it all.

Umpire – Calling “safe” and “out” for not only attendees and clients, but also monitoring our staff conduct and ourselves as well.

Train Conductor – We prevent derailment, get everyone on-board, and get the clients where they need to be.

Psychic – Can you predict human behavior based on all of your estate experience? Yes, you can. We’re very good at reading people and understanding motives.

Nurse/Doctor – Not only do we help heal many of our clients who are heavy laden and would have a very difficult time going through the process alone, we must remember the most important rule: First, do no harm. Clients come first. In the literal sense, we have all mastered first aid, as we bleed in nearly every estate!

Construction worker – We build this business from the ground up and create a very strong, honest/ethical foundation to weather the storms. If the foundation is not strong, we need to rebuild, remodel, tear down, or bring in a new addition.

Referee – Keeping the peace on all sides, at all times.

These are just a few of the many hats estate sale professionals wear on any given day, but there are many more that often go unnoticed; employer, exterminator, garbage man, dumpster gal, recycler, haul/drop-off person, organizer, companion, cleaning service, broker, miner, etc.

How much can one truly professional estate liquidator accomplish? It’s all in a day’s work!

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at julie@theestatelady.com.

Perils of Preposterous Pricing, Part 2

January 28, 2016 | Julie Hall

Older “die-hard” collectors are passing away and selling their massive collections all at once. So who is going to buy all these items? Some will be sold to today’s collectors, though far fewer in number than serious collectors years ago. Hence, these collections are saturating the market, driving prices and values lower. Too much supply, not enough demand.

Let’s return to the seller wanting to sell items they believe are valuable just because mom paid a fortune for them. They believe what they have is special and unique. Most of the time, figurines, china, collector’s plates, glassware, Victorian furniture and the like have saturated the market because millions of our moms and dads are passing away. Boomers are downsizing. Generation X and Y don’t want these items. Millennials are into themselves, not material possessions. These younger generations collect virtually, not materially.

When an heir is looking to sell Lenox, Waterford, Hummel, Franklin Mint, Depression glass, antique furniture, large wardrobes, entertainment centers, and china hutches, the estate experts only have to show how very flooded the market is to get the consumers to understand that these items are now worth very little.

When I look on Ebay and see a “sterling silver lot of 50 grams,” I wonder why on earth one would attempt to sell it for $200 when it would barely get $30 with the current spot price of silver, unless it was a unique designer piece or desirable manufacturer. Asking outrageous prices for items that are clearly not worth it any longer will backfire on the seller.

It is what it is. No expert, myself included, can alter these trends of simplification, downsizing, and squeezing more bang out of a buyer’s buck than we already do. The market is speaking and we need to listen.

Another issue? Many people with a smart phone in their hand believe they are an expert. I can assure you they are not. They just Google over-inflated prices, unless they are wanting to buy. If they are buyers, they search for the lowest possible prices in hopes of getting an item at a small cost. These issues are just the tip of the iceberg for what experts are dealing with as they handle personal property while managing clients’ expectations.

It takes an expert many years to understand trends, observe patterns, know how to maximize value, and offer the best value for the client. Do-it-yourselfers often do themselves a disservice by not enlisting the assistance of a professional who is experienced in all of the above.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

Perils of Preposterous Pricing, Part 1

January 18, 2016 | Julie Hall

Where do people come up with these prices and values? Understanding the difference between what was paid for an item and what you can sell the item for in today’s market is like the difference between buying a new car and selling it used. Depreciation has taken place in most cases. Much has changed in the secondary marketplace. Sellers must realize that there must first be someone who wants the item (demand) in order for it to have and hold value.

People still call my office to inform me of what their items are worth, even though they are hiring me to find out. I don’t normally mind when they say they already know the value because they “found it on the internet.”. Many of them have it wrong or have searched incorrectly. They see an “asking” price – a ridiculously high dollar figure that came from someone else’s head – which is now stuck in their head. They would like to believe and hope that this is the value.

The responsibility for sharing valuation knowledge with clients falls to all estate experts. We have to help clients set reasonable expectations. Some people will heed what we have to say, while others will continue to believe that if it was valuable in 1982, it must be more valuable today. These individuals are in for a rude awakening, resulting in anger and frustration which they will probably take out on the individual selling their items for them.

Who comes up with values? Ultimately, it used to fall on the serious collectors who set trends and values. Marketability and collect-ability are somewhat related. If an item belongs to a category of objects that people desire and collect, then logically that item’s value increases. However, we need to consider that the current market is fairly saturated with many of the collectibles that were highly sought after 20, 30, 40+ years ago, back when our parents’ generation paid top dollar for them.

Older “die-hard” collectors are passing away and selling their massive collections all at once. We’ll look at how this complicates the market and depresses the values next week in “Perils of Preposterous Pricing, Part 2”.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

A New Take on “Taking”

October 23, 2015 | Julie Hall

Tips for Letting Go When Handling an Estate

There’s nothing simple or easy about letting go, especially when you are handling the estate of a loved one. People have the tendency to keep too much from the estate. They often find comfort in the things and the memories attached to them.

Being able to let go:

brings closure and peace of mind
minimizes family and marital strife
prevents future worries when your children are burdened with the same stuff
help avoid storage costs
prevents cluttering your own home

When you keep too much:

You realize you no longer need what you kept.
Your own home becomes overwhelmed with stuff.
Storage costs far outweigh the value of what is stored.
Your kids and grandkids don’t want what you selected to keep for them.
You may experience guilt. “Mom would be so upset if I sold that.” or “Mom said it was valuable so I should keep it.” Escort guilt to the door. Life is hard enough without the burden of needless guilt.

What do YOU want?

It’s perfectly acceptable to let go of possessions, especially if you don’t absolutely cherish them. If no one in the family wants the items, have an estate sale professional sell to those who will cherish them like mom and dad did. Unfortunately, families rarely get to see how happy new buyers are when they find these items. I’d much rather have someone who can appreciate the items, than to keep them stuffed in boxes taking up space in my home … unappreciated.

TIPS

Don’t keep items just because. Ask yourself if you really need it and have a purpose for it.
Record a video of the estate as it was when your loved one lived there.
Photographs are a great idea to preserve the memories without hanging on to the stuff.
Give to those less fortunate. Maybe your loved one had a favorite charity. Even if you have an estate sale, arrange for the estate sale professional to donate the items that do not sell.
Be honest and realistic. Will you really use this item? Why are you keeping it?
Set healthy boundaries and realize that space is a limiting factor.
If the estate needs to pay off debt, take as little as possible, so the remainder can be sold by a professional and proceeds applied to the debt.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

“Help, I’m Lost!”

October 16, 2015 | Julie Hall

You have come to the inevitable crossroads of making difficult decisions about assisted living or long-term care for your loved one, and the emotional pressure and exhaustion are enormous. The pressure rests on you to find the best resources to help and carry out a smooth transition. You are also tending to a myriad of daily needs, like phone calls, medicine, doctor’s appointments, dealing with family members, and much more. No wonder you have a tendency to lose yourself, or at least, feel lost. You may even feel at the brink of snapping emotionally.

Even if your loved one refuses to go along with the best possible choices you make, you have to make the best choice for them and then live with that choice. Often, guilt accompanies your decisions, no matter how much effort and love you put in to the process. Then, family members will have differing opinions, which further adds to the stress, confusion, and frustration.

If your loved one has died, leaving you to handle their estate, you enter what many of my clients call “Prozac time.” Though they say that with a bit of humor, their body language confirms the truth they feel. They walk into the family home for the first time and their brain betrays them with a whirlwind of thoughts.

Where do I begin? There’s so much stuff!
What was she thinking by keeping all this stuff?
What do we do with it all?
Is there anything of real value here?
Will we argue over it all?
Should we sell, donate, keep?
What if I just move it to storage and deal with it later?

This is just the tip of the iceberg. There are answers to all these questions and solutions for you by hiring the right professionals in the estate industry. Make sure all the professionals you think about hiring have appropriate experience, credentials, and training to give the best possible assistance to your family. These professionals are valuable resources who can relieve so much concern and solve so many problems.

Exercise caution if you find someone who “dabbles” in estate sales or any other occupation. They may appear “more cost-effective” but in the end, you will pay a heavy price.

Dabbling is dangerous! You need a PRO!

Get the best professionals and the process will flow smoothly. You may be tempted to “do it yourself” but these experts can solve more issues effectively because they have the resources and experience that you don’t have. Be sure to ask questions, and seek out the few professionals that you trust. The really good ones are worth their weight in gold!

Take comfort in the fact that this is a season of your life which will get better. Keep your sights on the positive end result. Be sure to ask for help from close friends, trusted siblings, and counselors to keep you emotionally on track and healthy. Don’t forget to take care of yourself too.

To locate an estate sales professional in your area, go to www.ASELonline.com and click on the top tab “For Consumers.” You’ll find a searchable database of professionals, and many other resources to help you.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

You’d Better Sit Down!

July 31, 2015 | Julie Hall

I can’t stress this enough, though I feel like a nag for repeating it often:

A majority of the time, your possessions are not worth what you think they are worth.

My phone rings each day with dozens of calls. But the calls that always make me pause and take a deep breath are those that start telling me what their possessions, or inherited heirlooms, are worth. In fact, a recent client had a great deal of difficulty hearing the real values of her mother’s possessions. I was afraid she would pass out, so I said, “You’d better sit down!”

Allow me to say this where all can see it clearly, in hope of helping as many as possible.

Internet research of items may be completely useless. Many items are not researched correctly, because the average person may not know the correct name or description for the items being researched.
The internet is only a good tool if you properly search for realized prices, not asking prices. Realized prices are what an item sold for. That’s the only figure used to determine fair market value. Someone can ask the sun and the moon for an item; the asking prices on websites are insanely high. One is left to think those items will NEVER be sold at that price in this market.
People hear what they want to hear. Many do not listen, even to an expert. They see a “price” on the internet for $650 and by golly, that’s what their item is worth. No, it’s not! This particular item may actually be selling for $75, making the fair market value $75, not the figure they saw. Sadly, some people are so anchored to their possessions they will not heed the sound judgment of professionals who do this every single day.
Family lore: “The fish you caught was HOW BIG?” All our parents told us for decades that certain pieces were “extremely old and valuable.” Remember, until a professional examines them, conclude that the pieces were cherished by your parents/grandparents, but still may not be worth much. Keep your expectations in neutral. Most of the time, these pieces have more sentimental value than actual value.
The price paid for an item has nothing to do with its value in today’s market. “I paid $5,000 for that.” It doesn’t matter. What does matter is:
1. It is a used item.
2. It may no longer be in style.
3. It may not even be desirable, especially if it’s dark brown or very large (both are out of favor now).
4. No one really wants it.

Try to remember these things brought you or your loved one pleasure. In today’s soft market, there is no way you’ll get thousands of dollars from selling them.

6. Mom collected these for 50 years but they are still not valuable now. We grew up with our mothers drilling into our heads just how valuable her items are, and yes, they were desirable at that time. In the 21st century, homes are desperately wanting to be clutter-free. The younger generations no longer want to crowd furniture surfaces with framed photos, figurines, and paperweights. Boomers are getting rid of these items, hoping to live a simpler life.

The solution to all these problems, and many more, is to find an expert who understands these possessions and the best way to sell them, based on what they know about the market. Always get professional estate assistance before you do anything. Try to be as realistic as possible.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

What Factors Affect Value?

July 21, 2015 | Julie Hall

We want to believe that our possessions have exquisite value and will bring much money one day when we are ready to sell. We are disappointed to learn that the heirlooms of mom and grandmother are not worth much anymore, despite the family lore. What can affect the current value of personal property?

The Economy

If the economy is soft, the values for most personal possessions on the secondary market are going to suffer, like everything else. Today’s trends are all about simplification, so the market is flooding with traditional household furnishings from our homes and our parents’ homes

Market trends

Are the items currently sought after and desirable to have at this time, or are they just good, usable items?

Value

What is something really worth? Not what you paid for it, and not the value on an old appraisal report. Ultimately, it is worth what someone is willing to give you for it. Here’s where it helps to have a professional who can research your items and guide you towards achieving maximum proceeds. Searching the internet for “values” only produces asking prices, not genuine sales comparables, not what the items actually sold for. Professionals know how to search for your items and what they are currently selling for.

Popularity and Style

An item may be attractive, but it might not have much value. On the other hand, the most unsuspecting, and often unattractive, items may have more value than you know. Much has changed in the marketplace; people have changed and values have changed, along with what’s hot and what’s not.

Changing lifestyles

Traditional, dark “brown furniture” (as it’s called in the industry) does not have the appeal it did for our parents or grandparents. It may be in good condition, but children and grandchildren don’t like the dark brown. They are buying these pieces inexpensively to paint, because the market is saturated with these pieces.

Generational differences

Grandmother’s cherished floral china from the Depression era is completely different from what a 22-year old woman wants today. Generation X and Y want a simple, clean, European look for their homes and no clutter or knick-knacks. They shop at places like IKEA and Pottery Barn. The Boomer is caught somewhere in the middle, still somewhat traditional, not as much as their parents and not as indifferent as their children.

Junk or something more?

Proper identification is the key. The television shows would have you believe there is treasure in every home or estate. While you may find interesting collectibles, not every home contains a treasure of significant monetary value. Yet, you just never know what you could have in your possession.

Law of supply and demand

This law is always in effect, for everything. Too much supply and not enough demand causes the prices to fall, such as all our older loved ones’ glassware, porcelain, and collectibles. They are in abundance in every household, but few truly want them in 2015. On the flip side, anything in demand but in small supply will usually sell higher, because it’s desired and not readily available. The internet makes the world very small. What used to be rare and hard to find is now in abundance on all major online auction sites. Suddenly, there are 1,956 figurines just like mom’s.

We have little control over most of these factors, but that’s why items are no longer commanding what they used to.

Two recommendations from the expert:

Keep your expectations reasonable.
Hire a professional to advise you on values.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

“Warning, Warning!”

July 8, 2015 | Julie Hall

Remember the 1960s TV series “Lost in Space?” The Robinson’s robot would wave his mechanical arms and shout out “Warning, warning!” when danger was near. I wish I could do that every time I hear a nightmarish story in my industry, which makes my gut cringe and gives me gray hair at the same time.

I met with a client this past week; she had a home full of truly beautiful things she had collected over 50 years. Many of my clients in recent years are either downsizing or simply don’t want their amassed collection of stuff any longer. This particular client had items of significant value and had several people walk through her home, giving ideas on how to sell or whittle down her collection. This is not necessarily a good idea: too many “cooks in the kitchen” with differing ideas on how the possessions should be handled appropriately.

I was finally called in because she no longer knew who to trust. She needed an expert to come in and tell her the truth of the best way to sell the items and what they are really worth in today’s market.

The hair on the back of my neck stood up when she told me “three estate people” (that no one has ever heard of) came in to her home and offered her one sum of money for 3,500 square feet full of beautiful possessions. “Take it or leave it.” Thank God she left it!

I failed miserably trying to maintain a poker face when another person (no one has ever heard of) offered to take everything and sell it in their shop, without any detailed accounting or itemization of her things. When she told me how much she had been offered for her things, I nearly hit the floor as the blood drained from my face!

Warning, warning! Hear me shout from the mountain top. DO NOT DO THIS!

Always seek personal property professionals who are highly recommended by other professionals. Let them look, value, advise on your possessions before you do anything else!

Do not throw away or give away anything until a professional has walked through!

Please do not accept the first person that no one has heard of. Please take your time and do your homework! Hasty mistakes will hurt you most of all.

First, identify anything of value. Then, make decisions on what you will keep and what you will sell and stick with those decisions. Always look for the best professional you can find. It’s perfectly fine to interview several companies; determine what they can offer you and who you feel good about working with. Get everything in writing. Finally, let that professional do their job.

Don’t choose some fly-by-night company that no one has ever heard of. Due diligence is important on both sides: the estate professional and the client.

Ultimately, use your gut instinct to uncover the best professional for your needs and build a relationship based on trust.

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.

In Pursuit of Good

May 22, 2015 | Julie Hall

Anything Less is Counter-productive

The world is full of good people with wonderful intentions. The world is also full of bad people with evil intentions. My past week has been filled with: “he said/she said”, “You won’t believe this”, or “Why are they bashing people like this?” It was an exhausting week, and I feel drained of energy to do my creative work. My good work. The work I was put here for.

So, I sat back and watched things unfold before me. What I saw was very sad. Sad for me, sad for others who did nothing wrong, sad for everything that transpired. I witnessed people losing themselves and imploding. People were spending so much time attaching and hurting one another, often behind their backs, and spending very little time in the pursuit of something productive, something good.

I really examined the situation as objectively as I could, and came to the healthy conclusion that I would much rather spend my time, energy, and life using my gifts to:

create,
be the best I can be,
touch others’ lives in a positive light, and
uplift instead of ripping down.

It takes much more energy to hurt then it does to heal!

Why spend all of that time attacking and hurting others, when turning the other cheek (if possible), ignoring (if possible), or doing something for the betterment of others not only helps and improves the situation, it is also good and right. I am not suggesting it is alright to be a doormat. It is good to stand up for yourself in a professional manner.

Taking the high road is the road less traveled.

It is lonely and frightening at times, but does not go unnoticed and has its own rewards.

It is also easier said than done.

Here’s the point. If you get sucked into the poop storm, the only thing that will fly will be poop. It won’t do you any good, nor your spirit or overall well-being. Nothing good can come of it. Step out of the storm. Always, always take the high road as often as you can. While it can cause personal pain — we do take things personally — eventually the storm will dissipate and you will find a sense of happiness that comes with your good decisions.

We cannot control others. We can only control how we handle what others do to us. Call on friends for support, prayer, venting, etc. Look towards a positive solution. This too shall pass!

No part of The Estate Lady® blogs, whole or partial, may be used without Julie Hall’s written consent. Email her at Julie@TheEstateLady.com.