Downsize

Your Reality Check for the Day

| Julie Hall

My clients have taught me that in the end, the worth of an item is measured only by the joy it brings at a particular point in time.  Many of us claim to cherish our possessions, only to discover that with the passage of time, they don’t mean as much anymore, or they have become a burden to us in some way.

Perhaps our tastes have changed.  Our home is too cluttered, or the sheer volume of what we own has caused marital strife.  Maybe you feel guilty because mom passed away and you feel the need to take a lot of what she owned.

Today, more and more people are selling their stuff to downsize, make extra money, empty an estate, or to simplify their lives and not have their stuff own them.  I’ve seen each scenario described, and I have witnessed what appear to be love affairs between people and their things.

A recent client told me he was terminally ill and he had many collectibles and oddities he had collected over the years.  He wanted me to come over, sell what I could, and send the proceeds to benefit a wonderful organization.  What a beautiful thought, but it’s what he said that made me really think:  “Mrs. Hall, it’s time for someone else to enjoy these items which brought me so much pleasure.  I am blessed beyond measure.  These are just things that I had fun fixing up and looking at.  But it is a humbling thought knowing someone won’t make it through the night, and it’s time to move forward.  My job right now is not to worry about this stuff … it’s to live as long as I can!”

Suddenly, everything shifted as his words sunk in.  I always thought I was unique to my industry – that while I was an expert in personal property, I never truly had love for these things, just appreciation.  Clients like him have taught me what’s really important in life.

© 2011, The Estate Lady

From Clutter to Cash, Part 3

| Julie Hall

Here are the final 4 options for turning the clutter stored in your home and garage into cash.  Please pay special attention to Option #7 before you get rid of anything that might have value. 

6.  Do-It-Yourself – You can try Ebay, Craigslist, local advertising in your newspaper. These are time-consuming and often frustrating if you don’t know the proper way to describe the items, people never show up at the appointed times, money can be wasted in fees (especially Ebay’s, which are not cheap, but at times are worth it). For antiques, collectibles, jewelry, vehicles, larger collections: If you are determined to save the percentage you would ordinarily pay a professional, that’s ok. But keep in mind that professionals have the knowledge and skills to sell these items for the highest amount they can. If you are paying them a commission, they want it to sell for as much as possible too.

7.  BEFORE you sell or give away anything you perceive has value, make sure a professional appraiser takes a look at it. A professional who is paid for an opinion of value and not one that will offer to buy it, which to many is a conflict of interest, but you be the best judge. I have uncovered items worth tens of thousands of dollars that were slated for donation. The fee my client paid me was well worth having me come over, because my experience and skills uncovered what they thought was give-away junk. For example, they were very happy when I discovered in their basement a vase that was sold for $57,500.

8.  To sell or donate? – Should it just be donated, or can I try to sell it first? If it doesn’t sell, I’ll pack it up for donation. Whichever you prefer. If it is banged up and in horrible condition, recycle it or throw it away. If you would feel better giving your items to those less fortunate – there are many who are these days – please find a worthwhile charity or organization. By all means, give, give, give. You will receive a donation receipt you can use for this year’s taxes.

9.  Scrap it – If it’s metal and you don’t want it, or it’s broken or bent, don’t throw it away; scrap it! Find out the location of your local scrap yard and haul it there to get cash. It is not unusual for a truck load to be $100-$150 depending on the type of metals you have. They are looking for insulated copper wire, copper tubing, auto radiators, air conditioning coils, brass, aluminum, bronze, cast iron, stainless steel, and other high temperature alloys.

Please leave a comment at the end of this article and let me know how this has helped you.  What have you cleared out and how did you turn it into cash?

©The Estate Lady, 2011

From Clutter to Cash, Part 2

| Julie Hall

We’re continuing our conversation from the last blog about turning clutter into cash.  Here are several more options for finding a buyer for your clutter.

2.  Consignment shops – For designer clothing, higher quality purses and shoes, nice quality furnishings and home decor, physically go into different stores to talk with the manager and get a feel for their percentage/fees and how they work. Some will negotiate on their percentage a little bit. You can expect to pay them 35%-50% commission, plus a possible pick-up fee. Remember: location, location, location.

3.  Auction company – If you have a lot of household items, nice quality furnishings, and decorative items, consider a local auction house with a good reputation. Their percentages range from 15%-25% and may also have additional pick-up fees. Remember to ask for auction estimates for some of the better pieces, as the auctioneer should be able to offer you a range that he/she feels it will sell for. There are two kinds of auctions: absolute and reserve. Reserve means it will not sell until the reserve price (minimum) has been met. But many auctioneers will not place reserves on numerous items. They will sell for what the public decides; that is an absolute auction. When that hammer comes down and it’s only $20.00, that is what the item sells for.

4.  Higher-end auction galleries – For higher end items, find higher end auction galleries and contact their consignment director to ask them if these items are of interest to them. Large auction houses have extensive lists of buyers and often sell to multiple countries. This is what you want for high-end items that are small enough to ship.

5.  Selling gold? – A jeweler may not get you the most “bang for your buck” but it’s worth asking. Don’t be too hasty when wanting to melt down items. Many people are selling gold pieces with gemstones in them and not getting paid for anything other than the gold. Think twice and compare offers: Can I get more for this piece as it is, a ring or pendant, or should it be melted down? Do research in your area. Find the gold buyers that are one or two steps from the refinery itself, as they will generally pay you higher $$ than others. Call around; visit different places. Get the gold weighed and let them make you an offer. Go with the highest offer. Note: There are those who are sitting on their gold, thinking it will go higher still. Watch the gold prices closely.

We’ll have the last 4 options next week! 

©The Estate Lady, 2011

Downsizing = Daunting

| Julie Hall

“Daunting” is a good word to describe the downsizing process, and many questions and problems will arise during the process.  Selling household contents and clearing out a home after a loved one becomes infirm or passes away brings about great emotions which further complicate the process.

Consider it a labyrinth of issues — whichever way you go, there are even more questions and things to worry about.  There are many “unprofessional professionals” waiting in the wings to take advantage, so you must carefully choose the best professional to assist you.  The more knowledge you can amass, the better equipped you will be to make sound decisions and feel good about them.

Talk to different professionals: auctions, estate liquidators, consignment companies, to gather facts and see what each one can offer you.  Find out if they will come to your home and look at the items to be sold, what their percentage is, whether they charge a fee to pick those items up, can they provide references, do they work by contract (you want a contract!).  Remember too, to contact your local Better Business Bureau to make sure they have no unresolved complaints against them.

Ask around.  Talk to friends, colleagues, your attorney.  Most of all, find a professional you feel comfortable with and feel you can trust.  If your gut instinct tells you the fit is not right, listen to that instinct and continue searching for another professional.

Next week: A guide to hiring an estate liquidator

In the meantime, check out my book “How to Clean Out Your Parents’ Estate in 30 Days or Less” for so much more on this process.  See the link to the book at the right of this blog.

© 2011 Julie Hall

In Search of Sanity

| Julie Hall

We have way too much stuff!

Everybody collects something.  It’s exciting when you find a special piece you’ve been seeking for years.  When the word gets out that you collect cats, suddenly everyone buys you cats.  Metal, porcelain, plastic – it doesn’t matter – you get tons of them whether you want them or not.

Let us not forget that we inherit items along the way too, tripling (or more) what we already have.  Next thing you know, our homes are busting at the seams, our spouses are griping because of all the clutter.  Our children have let us know, in no uncertain terms, that they want nothing other than a ride to IKEA or cash, so they can buy what they want.

We’re facing a major problem in this country as our seniors and boomers age and pass away.  We just have too much stuff.  More is finding its’ way to the market everyday as boomers are getting the message to simplify their lives and let go of things that bog them down.

This simplification process has brought to the marketplace experts such as professional organizers, senior move managers, stagers, and estate experts.  Look for professionals who are trained, have credentials, belong to professional organizations, and have experience.

As we make our way through our parents’ belongings, we also have to contend with our stuff at the same time.  Learn to let go, and keep the next generation in mind as you are doing so.  They certainly don’t want much and they won’t change their minds.  As a client recently told me, “I’ll take photos of the items before I sell them.  The photos take up less space!”

© 2011 Julie Hall

“I know you paid $2,000 for it, but …”

| Julie Hall

If I had a dollar for every time I said this to a client, I would be a wealthy woman.  It is a difficult occupation being an estate expert who specializes in personal property.  They call it personal for a very good reason.  When people go to sell their items, everyone gets very personal about them and feels they might be worth a fortune.

As one who has handled tens of thousands of personal items in my tenure, I can assure you very few pieces actually have truly significant value.  I know you paid a considerable amount for that sofa, or candelabra, or sideboard, but in today’s market, that is a thing of the past.  It’s a hard pill to swallow, I know.

The truth is, when times are good, people simply pay too much for things.  Now, due to economic reasons, everyone is recycling personal property, buying at estate sales and auctions, and really saving a great deal of money not buying retail.  When we hear clients lamenting the fact that they paid $4000 for a sofa and today can only get $600 for it, they want to know why!

In a  nutshell, the styles have changed, the times have changed, younger women don’t like what the older women like, and we have too much supply of traditional furnishings as our older loved ones leave us.  The more supply that comes on the market, the lower the prices will go.

So, hold onto your hat when you go to sell your furniture or traditional items.  As hard as it may be to hear, remember … don’t shoot the messenger.  I’m just doing my job to prepare you!

© 2011 Julie Hall

6 Practical Ways to Help Your Parents This Fall

| Julie Hall

Now that the weather is cooling and the leaves are ready to fall, here are 6 practical ways that you can assist your elderly parents.

  1. Help your parents protect all their assets.  Know all the professionals they work with, i.e. CPA, financial planner, attorney, etc.
  2. Know the location of all their important documents.  If the documents are in a locked cabinet or fireproof storage, know where the keys are kept.
  3. Have the important conversations with them about their wishes for the future, who will be their executor, healthcare power of attorney, and discuss distribution of the heirlooms and personal property.
  4. You can’t take it with you!  If they are able, suggest to your parents that they write a master list of who should get what, and give the document to the executor.  Or, they can ask each child what they would like to have, and put that on a “wish list”.  A document cuts down on the “he said-she said” that often goes on when settling an estate.
  5. Start de-cluttering and thinning out your parents’ home now.  Often children are overwhelmed by the amount of “stuff” in their Depression Era parents’ home.  This is a good way to begin the process of cleaning out, so you won’t have to do it all at once later.  Make sure you have their permission.
  6. Always come from a place of love.  You will have several difficult conversations and awkward moments when asking your parents these questions.  Always approach them with love.  For example, “Mom, we are very worried about you and would like to have a talk about what you would like for your future.  Sue and I would like to honor your wishes, but first, we need to know what those wishes are.”

For more practical tips and compassionate advice, read my best-selling book, The Boomer Burden: Dealing with Your Parents’ Lifetime Accumulation of Stuff.  Check the right side of my blog for a link to order both my books.

© 2010 Julie Hall

7 Estate Tips for You This Fall

| Julie Hall

Now that school is back in session and Labor Day is over, it’s time for us all to get back into our routines which we abandoned in the heat of the summer.  Here are 7 tips that I want you to add to your routine this fall and winter.

  1. Make sure you and your spouse have a Will/Trust/legal documents.  Better than 50% of us don’t have one, leaving our heirs to fight and “guess” our wishes and intentions.  Dissolving an estate is not the time for guesswork
  2. Make sure someone knows the location of these legal and other important papers, such as life insurance, financial information, as well as computer passwords and keys to safe deposit box.
  3. Simplify your estate by starting to get rid of your own stuff now.  Clean out the garage, attic, and closets — we have too much stuff!  By doing this now, your kids won’t be angry with you later for leaving them a big mess.  We  only use the same 20% of what we have anyway … Reduce!
  4. If something new comes into the house, two things have to exit, whether it be for charity, selling it, etc.  Avoid the clutter that comes from constant buying.  Think “simple and easy.”
  5. Have that courageous conversation with your spouse or children (if they are old enough).  Tell them your wishes for the future, then go the distance and document all this so they have a guidance system when the time comes.
  6. Consider gifting heirlooms and other important items while you are still living.  This minimizes future fighting, and you have the joy of seeing the recipient’s face when they receive their gift.
  7. Always hire a personal property appraiser for items of value in your own home or your loved one’s estate.  Only then can equitable distribution take place.

Next week, I’ll give you 6 tips for your parents’ estates.

© 2010 Julie Hall

Three More Important Tips for Personal Property

| Julie Hall

We’re continuing our discussion of important tips for dealing with personal property in an estate.  Here are the final three tips:

3.  Just because it is old doesn’t mean it is valuable.  This is my personal mantra.  Each day, I must face clients and report the truth based on facts.  Depression glass may have been the rage 12 years ago, but today the market is pretty flat, much like the beloved Hummel figurines of mother’s day.  It’s important to understand the distinction between monetary and sentimental value.  If great-grandfather made it in 1865, it is certainly old and very special to us.  This, however, does not indicate or equate to significant monetary value.  It does hold value in the heart, though.

4.  PLEASE hire a professional before you have a yard sale on your own.  In my career, I have seen things thrown in the trash, dumpsters, yard sales, etc. that children put there or sold for next to nothing.  In actuality, they were worth a small fortune!  Knowledge really is power.   Parents, consider getting your heirlooms evaluated prior to your passing, so you can leave this information for your heirs.  Children, ask questions about the history of these heirlooms while mom and dad can still tell you.  Discuss together the possibility of gifting prior to death.  At the very least, mom and dad should document who gets what.

5.  When using professionals in the industry, check them out first.  Make sure they have no unresolved complaints against them with the Better Business Bureau.  Ask them for professional references, and ask how long they have been doing this work.  Ask your friends, neighbors, and other professionals if they can recommend estate professional appraisers and liquidators.  Be very leary of those who “dabble” in estate sales or yard sales; you need a pro.  If you think hiring a professional is expensive, you should try hiring an amateur.

© 2010 Julie Hall

Important Tips When Dealing with Personal Property from an Estate

| Julie Hall

When a loved one becomes infirm or passes away, the handling of the estate and contents lands on the lap of the heir(s).  If the heir is prepared, it will go much easier than if they operate in a crisis mode.  All too often, I see children who don’t know anything about the estate and contents.  It’s like they are literally walking into a dark house and starting from scratch with no guidance.

Here are some important tips to consider if you are currently dealing with an estate, or soon to be handling one.

1.  Don’t do ANYTHING until you know what it is and what it’s worth.  Do not give items to neighbors, friends, family, or charity until everything has been looked at by a professional appraiser, or you have been advised what the best method(s) is/are to proceed with dissolution of the estate.  It is well worth the cost to get this information.  It will even assist with equitable distribution, thereby keeping things as neutral as possible between the siblings.

2.  What is it worth?  What someone is willing to pay you for it.  It is not worth the dollar amount you see on the internet – that is only an asking price and usually quite inflated at that.  It is not worth what grandma told you back in the 70’s, and the stories that were told by previous generations can be a bit stretched through the years.   As with anything else in life, the value is contingent upon many factors, one of which is supply and demand. 

Since so many china sets have saturated the market, and will continue to do so, what do you think will happen to the price?  If the younger women want Pottery Barn and IKEA, and not grandma’s china, what will happen to these sets?  The prices will continue to plummet.  Always check with a professional appraiser first.

That’s enough to digest this week, but I have three more important tips for you next week!

© 2010 Julie Hall