5 Tips for Selling Collectibles in an Estate

If you have ever been the executor of an estate, you know that one of the more vexing executor responsibilities can be disposing of the deceased's belongings. While personal items with sentimental value can be distributed to family members, valuable collectibles are more difficult to handle, as I learned from personal experience. While every collectible category is different, here are 5 tips for selling collectibles in an estate.

Sort and Inventory. You need to know what you have before you can value and dispose of it, so take the time to sort and inventory the collectibles in the estate by type and category.

Gather Information on the Collection. Gather any information left by the deceased about the collection. If you are lucky, there may be itemized lists and photos used to obtain insurance coverage for the collection, purchase receipts, books about the collectibles category, and/or auction catalogs including prices realized, all of which may help you better understand the quality and value of the collection.

Seek Professional Help. If you aren't knowledgeable about the collectibles in the estate, get some professional advice before deciding the best way to dispose of them. Many collectibles categories have organizations for collectors (such as the Golden Glow for collectors of antique Christmas ornaments) that can be valuable sources of information and of contacts in the industry. Other sources of information and guidance include collectors, dealers, restoration specialists, books on the collecting subject, collectibles-oriented magazines, and auction houses that specialize in the types of collectibles you have to sell. While gathering information from such sources is crucial, always keep in mind potential conflicts of interest. For example, while a knowledgeable dealer can be a great source of information about the current market place and the relative value of individual items, if he offers to be all or part of the collection, be aware that his interest in buying items at low prices may conflict with your interest in realizing the most value possible for them.

Investigate Sales Venues. There are a variety of options for disposing of collectibles in an estate, including auctioning the items on a generalized internet auction site like eBay (either directly or through an eBay consignment store), consigning the items to a dealer who will sell them for you, selling the collection in whole or piecemeal to a dealer or dealers, selling the collection in whole or piecemeal to a collector or collectors, or consigning the collection to an auctioneer that specializes in estate sales or to one that specializes in collectibles (preferably one that is knowledgeable about the types of collectibles in the estate you are handling).

Choose the Best Sales Option for Your Situation. There are advantages and disadvantages to each sales option. Selling on eBay may be a good choice if you have a relatively few items to sell, but could be too time consuming and, therefore, impractical for a large collection. Likewise, consigning the items to a dealer may not be realistic since it could take an extended period of time to sell the items this way and it may not result in the sale of all of them (unless they are offered as a collection, which could bring in less than piecemeal sales). Selling the collectibles directly to a dealer or to collectors could be unwise unless you are knowledgeable about the items for sale and their market value.

Therefore, for many executors, selling collectibles through either an estate auction or a specialty auction house may be the best choice. An estate auction has the advantage of being relatively quick, but, if you have a little more time, selling through a specialty auction house may be a better choice. While specialty auction commission rates may seem high (perhaps 15% to 20% of the realized value or more), using an established, reputable auction company that specializes in the types of collectibles you have to sell may result in higher prices, since they are more likely to have a clientele of serious collectors of the types of items that you have to sell, they will catalog and properly describe your items, and they will actively market their sales in the collector marketplace.

Sources:

Barbara Crews, collectibles.about.com, Sell Your Collection - How to Sell Your Collection