Wayne Jordan Auctions & Appraisals

2010

An Executor

’

s Guide ToEstate Sales in Roanoke, VA

The Pros and Cons of Your Liquidation Options

Wayne Jordan, CES CAGA

An Executor

’

s Guide to Estate Sales in Roanoke, VA

The Executor’s Dilemma

Executors faced with having an estate sale in Roanoke and Southwestern Virginia quicklydiscover that selling the contents of a house is their most time-consuming administrative task.Executors must proceed carefully, because

if they don’t liquidate

the estate in a timely fashion,keep track of the property sold and receive fair market value for the contents, they canpotentially be removed from office by the Probate Judge or sued by the estate heirs.

What you’ll get from this article

My intent in this article is to save executors time and aggravation by setting forth the threemain liquidation options, and discussing the pros and cons of each. I will also suggest how anexecutor can investigate any company he/she is considering hiring, and make myrecommendation for the best method of liquidation. My assumption when discussing each

option is that the executor’

s goals are to have the house empty and broom-clean after thecontents are sold, and to maximize the cash benefit to the estate.

Along the way, I’

ll offer tipson how to maximize the return on each type of sale. This article will take about ten minutes toread, but it may save executors countless hours of work.

Option 1: An On-Site Estate Auction

Pro’s for an

On-Site Auction:

At times, southwestern Virginia seems like The Center of the Universe for auctioneers. Virginia

is one of the “big” auction states, along with North Carolina, Texas

, and Indiana. There is a lotof competition among auctioneers in Virginia. An executor will find it easy to locate an auctioncompany willing to handle the estate, and commission rates will be competitive. The benefit of an on-site auction is that the contents of the house will be sold down to the bare walls. Inaddition, Virginia auctioneers are licensed to auction the real estate and titled property as well.In one afternoon, the house, car, boat, RV, and all the personal property could be liquidated.

Con

’s for an

On-Site Auction:

The heart of any auction is competitive bidding. In order to have lots of bidders competing formerchandise, there has to be a big crowd. To have a big crowd at an on-site auction requiresgood weather, lots of parking, bathroom facilities, plus food and refreshments to keep thecrowd happy. Even when the live auction is combined with online bidding, an enthusiastic localcrowd helps get top dollar for the merchandise. For an auction to be successful there must bequality collectible merchandise to attract a crowd. If the estate consists primarily of goods thatcan be purchased cheaply at the local thrift store,

there won’t be much interest in your auction.

Tips for an On-Site Auction:

An on-site auction may your best choice if the estate has many collectibles that are large, likeantique furniture or a piano. These sales get the best attendance on summer weekends, whenthe weather is warm and dry. Be sure to hire an auction company that has outdoor soundequipment, tents, display tables, and more than one cashier for fast checkout.

Option 2: Consignment to an Auction Gallery

Pro

’s for

Consignment to an Auction Gallery

Auction galleries operate indoors year-round, so bad weather does not significantly hurt

turnout. Auction galleries often group consignments into “featured” auctio

ns in order tomaximize turnout and prices received. For example, there may be an auction dedicated toceramics and glassware, or to coins, or to antique furniture.

Con

’s

for Consignment to an Auction Gallery

The cons for consigning to an auction gallery are considerable. To begin with, many auctiongalleries will cherry-pick an estate, taking only the good collectibles and furniture. Taking thebest and leaving the rest then creates a disposal and cleanout problem for the executor. Also,when the estate property is spread out between multiple auctions, the property can takemonths to sell, which delays probate reporting and the settlement of the estate.

Tips for Consignment to an Auction Gallery