When is the right time to sell?

How do you know when is the right time to sell? That is a question that we get often in the auction business, but it really applies to any method of sale.

Obviously a seller wants to be able to maximize on the peak of a market. The problem is, we do not always know when that peak is.  In the collector world, I believe that all markets are cyclical.  Of course some cycles are longer than others, and the growth curves are not necessarily equal.  But..... they are cycles nonetheless.  My general advice is always sell when something is hot.  Is there a buzz about your particular item?  Are folks talking about it?  Are people paying higher prices than you have seen recently?  If you have considered selling, this is the time!   Our society has a saying, "It will only go up in value."  That just isn't true in 95% of cases.  Everything is cyclical.  If you don't have any emotional investment, and you were considering selling anyway, pull the trigger when the asset class is hot.  Otherwise, you will miss an opportunity.  (I'm looking at you Beanie Babies and telephone insulators...)

The second thing to note is that that sometimes an asset can become a liability.  (or at the least a big loss.)  This is particularly true with business assets.  Unfortunately, I have seen this too many times.  I really feel bad for sellers who end up in this situation.  If a particular asset is costing you money or causing you duress, it's likely a liability.  For business assets, age can contribute rapidly to something becoming a liability.  Generally, the longer you sit on a business asset, the less value it will have.  This phenomenon is NOT exclusive to that class, however.  The same can be true of collectibles and personal items as well.  I'll give you some examples:

• Restaurant equipment might be one of the clearest examples that I see on a regular basis.  Equipment that has been sitting in a building, unused, for a long period of time loses value at a rapid pace.  Refrigeration, in particular, ages very poorly when not used.  If in place from a failed business, critters will invariably make their way into the kitchen.  This is not good...  I recently had to give some bad news to a restaurant owner who let a commercial kitchen sit unused for over a year.  What could have been $50,000 worth of good useable equipment was now worth less than $10,000, because most of it was worth nothing more than scrap.....and it had to be moved....another expense.  An asset had become a liability because of in-action.

• Assets that are occupying real estate can also become a liability, particularly if the real estate is highly desirable.  Unless a building is sold with the contents, it must be cleaned out.  A potential buyer will most times have no interest in the contents.  In this situation, the real estate is the asset while the contents are a liability.

• Perhaps nothing ages worse, or loses value quicker, than an automobile.  Of course, there are some exceptions in the collector car world. However, they must be maintained or at least protected. Do not expect your family's heirloom car to increase in value if it is stored under an oak tree.  Neglected collector cars that require extensive repairs and can very quickly become a money pit rather than an asset.  (as a car guy at heart, I'm begging you..... don't let them waste away!)

• Sports memorabilia is only as valuable as the last season of the player depicted.  The time to sell is when the player is hot.  There are certainly exceptions for Hall of Fame superstars of the past. Many of these items can actually increase in value.  But again, those markets are cyclical. Do you have a particular baseball card and you just saw the same one sell for a record price?  Now is the time to sell.  Never confuse your hobby with your retirement plan.

None of these scenarios take into account sentimental value. If something is a family heirloom, or has particular value because of a memory, then the item could most certainly be considered an asset.  But the value you put on it is based on emotion, not markets.  Keep that item. Enjoy it for what it is rather than what it might be worth.

In summary, watch for cycles. Sell when the item is hot.  If it is costing you money or causing you duress, it's time to sell.  If you love the item and can afford it, keep it.

If you find yourself in any of these situations, ask for help! Get input from a reputable personal property appraiser, auctioneer, or trusted advisor.  Having a fresh set of eyes with no emotional attachment will be good for a rational analysis.

More blogs to come this spring.  Stay tuned!

Alex Grovenstein
912-657-1831
alex@southauctiongroup.com
GA Auctioneer License #4105
SC Auctioneer License #4534
GA Real Estate License #366186
#AuctionAlex

Serving Statesboro, Savannah, and all areas of southeast Georgia and Southern South Carolina with open, honest and efficient auction solutions.

Crabb Estate and C&T Wholesale auction is one to watch

What happens when you inherit a farm equipment and parts business, but your life isn't exactly suited for that line of work?  Our current auction featuring the inventory of C&T Wholesale and parts of the Crabb Estate is a great case study.  Over 70 tractor implements, parts, trailers and even a Model A and Model T Ford will all be sold to the highest bidder.

Heirs often have much different lives than their benefactors. We see it fairly regularly.  After the passing of a loved one, an heir is faced with a decision.  Do I continue to operate a business, sell it, or liquidate it?   If taking over the business is not an option, auction is the answer.  I dove deeper on that subject in a earlier post here.  The heir can return to their normal life while the auction professional handles the details, the marketing, the work, the pickup process and the payment collection.  They simply receive a check at the end of the process.

For buyers, this auction will be a great opportunity as well.  Bid your price on harrows, mowers, landscape rakes, planters, box blades and much more.  There will be opportunities to buy parts in bulk, or even drive off in a sweet Model A Ford.  Bidding ends September 25th.  See this auction and the rest of our PACKED fall lineup at www.southauction.com 

Alex Grovenstein
912-657-1831
alex@southauctiongroup.com
GA Auctioneer License #4105
SC Auctioneer License #4534
GA Real Estate License #366186
#AuctionAlex

Serving Statesboro, Savannah, and all areas of southeast Georgia and southern South Carolina with open, honest and efficient auction solutions.

Macon Georgia Mega Estate

Property rights are still generally respected, especially in the south.  You don't just walk up on someone's place and start plundering. Because of that, amazing collections still exist, often tucked away and relatively undiscovered.  That's what we have in our current auction, The Coulter Estate in Macon, GA.

Mr. Jack Coulter built a collection that is nothing short of amazing.  Spread between a hand-built cabin, an old chicken barn and an old gas station, the antiques and artifacts packed in were an amount that I had never seen in an estate situation.  Most of the time we come across estates that are 70% less desirable items.  Mr. Coulter, however, had a great eye with the majority of his items being things for which bidders will have great interest.  We closed out the first half of the auction last month with excited buyers and very good results.  I expect that round two will be equally as exciting.

An estate situation, I am working for Mr. Coulter's heirs with this auction.  The volume was intimidating to them.  I was happy to step in with a solution.  That's of course how I feed my family, but it has also been a privilege to honor his memory.  The placement of certain items and the manner by which things were displayed showed me quickly the things that were special to him.  Those things were not always the most valuable, but it was a neat experience to look at something and wonder about the history of it and think about the stories that he may have told his friends.

From copious amounts of points (arrowheads) and quality signs to furniture, knives and other antiques, this auction has been a joy to prepare.  The work was tremendous, but when you love what you do, you never work a day in your life.  I believe Mr. Coulter enjoyed collecting just as much as I enjoy selling at auction.

If you like antiques, advertising, or just generally cool items, check out The Coulter Estate in Macon and share the catalog with others.  Its one that you won't soon forget, I assure you!

Alex Grovenstein
912-657-1831
alex@southauctiongroup.com
GA Auctioneer License #4105
SC Auctioneer License #4534
GA Real Estate License #366186
#AuctionAlex

Serving Statesboro, Savannah, and all areas of southeast Georgia and southern South Carolina with open, honest and efficient auction solutions.

Estate Auctions - What you need to know as a seller

Estate auctions happen daily.  Most people are familiar with them and many have purchased from them.  However, when you are on the selling side rather than the buying side, it is a much much different experience.  It's an emotionally taxing task for those in charge.  As I have written before, auctioneers are basically problem solvers.  Estates are an area in which the auction method can really benefit executors and heirs alike.

First and foremost, you should demand an auctioneer who will serve the needs of the estate with dignity, respect and humility.  While there is great benefit in having someone come in with no emotional attachment, respecting the consignor(s) grief process is VERY important.

An estate auction, properly promoted by a professional auctioneer, will yield clear benefits to heirs.  Let's examine several that I think are important:

• Estate auctions are honest, efficient and transparent.
• Anyone can openly bid, the price works upward and everything is done in a generally short period of time.  Records are kept with reports provided to the estate so that everyone understands what sold and for what amount.
• Estate auctions take a burden off of the executor and heirs
• During an already mentally exhausting time, an auction can relieve a major burden from executors and heirs.  Choosing a trustworthy auctioneer who can handle things for the executor can be a genuine relief.  In fact, most auctioneers can provide a complete solution.  Read on for more related to that.....
• Estate auctions maximize price realized for the heirs
• In an auction setting prices always work upward.  Price benefits from competition between interested buyers.  Rather than accepting the first "acceptable" offer, sellers are able to get all that the market will bear.  I provided more specific theory in a recent blog that you can read HERE. 
• Estate auctions can liquidate everything if the executor/heirs wish
• Not only will an estate auction take away burden and maximize the price on desirable items, it can also divest heirs of the less desirable assets as well.  This is a major difference as compared to estate sale events which could leave heirs figuring out what to do with unsold items.  In an auction setting, the less desirable assets may be grouped until someone "bites" ......again, setting the market price for that asset.  This is key if the estate needs to empty a property to create marketable real estate.  Speaking of which.....
• Estate auctions can include real estate in addition to personal property
• Perhaps the estate includes personal property and real estate.  Most auctioneers who offer real estate sell at auction and in traditional listing environments as well.  All situations and property are different, so either method could be appropriate.  This is another example in which an estate auction could be complete and turn-key for an executor.
• Estate auctions can give executors and heirs a method to efficiently divide assets
• Finally, an estate auction can actually provide executors and heirs with a method to equitably divide an estate.  At auction heirs compete and bid for items that they want.  The money that they spend would then, in turn, make its way back to them in their portion of the estate settlement.  Disagreements among heirs are unfortunate and sometimes nefarious.  As I mentioned in point one an auction is an honest, efficient and transparent solution and it could prevent that kind of situation.

Finally, it is important to note that many times estates are sold by the owner while he/she is alive and well!  I contend that the same information applies.  Simply replace the word heir with owner.  If you have any questions about estate auctions, or the auction method in general, feel free to contact me.  I'd be very happy to help you better understand the process.  Thanks for reading!

Alex Grovenstein
912-657-1831
alex@southauctiongroup.com
GA Auctioneer License #4105
SC Auctioneer License #4534
GA Real Estate License #366186
#AuctionAlex

Serving Statesboro, Savannah, and all areas of southeast Georgia and southern South Carolina with open, honest and efficient auction solutions.