Estate Sales: Are Auctions Better than Tag Sales?

Executors faced with having an estate sale inThe biggest disadvantage in hiring a tag sale
Roanoke and Southwestern Virginia immediatelycompany is that tag sale companies are not held to
discover that selling the contents of a house is theirthe same legal standards to which auction companies
most time-consuming administrative task.  Executorsare held.  Auctioneers and Realtors are bound by law
who don't perform their assignment could beto the estate by a fiduciary bond.  A fiduciary
removed from office by the Probate Judge, so it isrelationship binds the agent by law to act at all times
important that they diligently pursue disposing of thein the best interest of the estate.  Fiduciaries are
estate's property so that the bills can be paid and thelicensed by the state, must pass tests, be bonded,
estate settled.must hold all funds in an escrow account until
What youll get from this articledistributed, and has to settle the account with the
Executors in Southwestern Virginia and Roanokeestate within a specific time frame.
have three main liquidation options, and I will discussFiduciaries must also keep accurate records and
the pros and cons of each in this article.  Anyfollow certain protocols.  Failure of a fiduciary to
company chosen to liquidate an estate should befollow procedures can result in fines or loss of license.
checked out; I will tell you how to do this thoroughly, Tag sale companies are not held to the same legal
and I will also make my recommendation for the beststandards, although they certainly have a moral
liquidation method.  I assume that the twin liquidationobligation to the estate.  Tag sale companies can
goals of the Executor are to get the best monetaryhandle the details of the sale and the distribution of
return for the estate and to leave the housethe money any way they see fit.
broom-clean so that it can be sold.  Of course, thereAnother problem with tag sales is that typically there
are ways to maximize the cash return for each typeis merchandise left over after the sale. Often, there
of sale, and I'll tell you what they are.  Investing tenis a LOT of merchandise left over.  When a lot of
minutes into reading this article could save anitems are left over, the executor then has a
Executor many hours of work.clean-out problem, because the house must be left
Option 1:  Have An Auction On-Site"broom-clean" before a realtor will list the house for
Benefits of an On-Site Auction:sale.  Unlike an auction, where prices go up with
There are a lot of Auctioneers in Southwesterneach bid, tag sale shoppers want to negotiate a
Virginia.  Auctions are "big" in the South and Midwest,lower price for everything, which is not only time
the biggest auction states are Virginia, North Carolina,consuming but costs the estate money.
Texas, and Indiana. Auctioneers in Roanoke andTips for Tag Sale On-Site
Southwestern Virginia are very competitive.  ItWhen working with a tag sale company, read the
should be an easy job for an executor to find ancontract thoroughly, make sure settlement dealines
auction company willing to take the job, andare included.  The operator should have a solid
commissions will be competitive.  A strong argumentpricing plan, adequate staff, and a solid track record.
for an on-site estate auction is that when the auctionWhat about Internet Sales and Retail consignment?
is over, there will be very little clean-up.  If you like,Internet sales work well for items that can be
the real estate can be auctioned as well, since Virginiashipped easily, like small collectibles, books, and
auctioneers are licensed to auction the real estateartwork.  Before you decide to sell these items
and other titled property. In one day, the house, car,online, remember that having a nice assortment of
boat, RV, and all the household goods could be sold.collectibles at your auction or tag sale is what will
Negatives for an On-Site Auction:attract the buyers to your event.  If you sell all the
Auctions are driven by competitive bidding.good collectibles online, you won't get very good
 Consequently, it is necessary to have a lot ofattendance at your sale.  Dont even consider a retail
people at your auction.  Big crowds require niceconsignment; they will take too long to sell your
weather, plenty of parking, bathrooms, food, anditems.
refreshments to keep the people from leaving.How do I know if I am dealing with a reputable
 Online bidding can be included to boost attendance,company?
but it is the local crowd that builds excitement andUnfortunately, asking for references doesn't always
drives the prices up. To attract a crowd, the estatework; no one gives a bad reference. The Better
must have collectibles and other quality goods.Business Bureau lists ratings for some, but not all,
 Run-of-the-mill goods that can be purchased at thecompanies.  With a Virginia auction company, go
local thrift store are insufficient to attract a goodonline to the Department of Professional and
auction crowd.Occupation Regulation (DPOR) at   . On the main
Suggestions for an On-Site Auction:menu, go to License Lookup; there you will be able
If your estate has many large collectibles, like antiqueto check the license status and complaint history of
furniture or a piano, an on-site auction may be yourthe auction company.
best choice.  Summer weekends, when the weatherChecking up on a tag sale company is a lot harder,
is warm and dry, are the best times to hold anbecause there is no agency keeping track of
on-site estate auction.  The auction company youcomplaints.  One website that is helpful is  When at
hire should be equipped with sound equipment,the site search the name of the company you wish
canopy tents, display tables, and plenty of help forto investigate; also type in the owners name to see
fast checkout.what that brings up.
Option 2: Auction Gallery ConsignmentHire a company with a solid internet presence
Pros for Auction Gallery ConsignmentThese days, it is imperative for a company to have
If weather is a concern, you may want to consideran online network. A company that is well-connected
consigning your items to an Auction Gallery.in the online world is likely to be a company that is
 Consignments at an Auction Gallery are groupedwell-networked in the local area. It's unlikely that a
according to the type of item in order to maximizecompany with a poor or no website will be able to
turnout and get the best prices from their collectors.use the internet to generate sales for your event.
 For example, there may be an auction dedicated to Doing a Google search of the company's name or
art and home decor, or musical instruments, orweb address is the best way to to see how well
ceramics.connected they are.  Go to Googles search bar (not
Cons for Auction Gallery Consignmentthe address bar at the top of the page, but the
There are quite a few reasons for not consigning tosearch bar in the center of the page) and type in the
an Auction Gallery.  For starters, many Auctioncompanys web address starting with www.  How
Galleries will take only the best items from themany search results are returned that pertain directly
estate.  Ninety percent of an estate is made up ofto the company you are investigating?.
items that are of little interest to the auctioneer,If the company is a national franchise, disregard the
which leaves the Executor to deal with the remainingresults for the general franchise and only count the
ninety percent of the estate property.  Lastly, whenresults where the local company is mentioned.
an Auction Gallery spreads the merchandise out over Ranking well with the search engines doesn't
several auctions, it can take months for all the itemsnecessarily mean the company will be the best one
to sell, delaying the closing of the estate.for your needs, but it is a good indicator of the
Tips for Auction Gallery Consignmentprofessionalism of the company.  Typically,
Before you consign to an Auction Gallery, ask thecompanies have lots of returned results because
auctioneer how your merchandise will be distributedother organizations want to associate with experts in
between auctions; get a guranteed settlement date.their field, so they link to the experts website. A
 You will also need a plan for disposing of all thelarge number of linking companies is like a "vote" for
remaining estate merchandise.the company being linked to.  A company that
Option 3: Tag Sale On-Sitedisplays lots of Google results is usually one that is
Pros for Tag Sale On-Siterecognized as being expert in their field.
Tag sales have several advantages over an on-siteSo, what's the best way to liquidate an estate?
auction.  For those that are not familiar with tagThe best type of sale for estate liquidation is to hire
sales, the sale is held on the premises and in thea licensed fiduciary to sell the estate property in one
house.   Companies that specialize in tag sales areday, to the bare walls, any time of year.  To
less common than auction companies.  At a tag sale,achieve this would require an event that is part tag
everything in the house is priced, much like at a yardsale and part auction, run by an auctioneer.  Since
sale.  Shoppers will browse through the house, andTag Sale operators are generally not licensed
choose the items they wish to buy.  When buyersauctioneers and auctioneers usually hate to do tag
arrive at the house, they take a number, and aresales, that's a tough solution to implement.   There
admitted into the house when their number is called.are auctioneers that combine these services,
 Tag sales usually start on Friday evening and endhowever. Finding such a company will give an
Sunday evening, so there is no need to provide foodexecutor the flexibility of having a sale any time of
or bathroom facilities.  Tag sales can be held rain oryear, the ability to sell down to the bare walls with
shine and in any season.nothing left over, and the assurance of dealing with a
Cons for Tag Sale On-Sitestate licensed and bonded fiduciary.