Last year, people in America spent more than $160 billion on secondhand items. If you are looking to get rid of items that you no longer use or need, you could make a great profit!
That said, if your items are going to sell, you need to set a fair and realistic price for them. More than 74% of people who buy secondhand goods online do so to find a bargain. Items that are priced too highly simply won't sell, so it can help to consult an auction pricing guide.
You also don't want to panic and miss out on money by selling your items too cheaply. Selling your items in an auction allows you to set a minimum opening bid for them, if you desire.
Not sure where to start with pricing your auction items? Then you're in the right place. Read on to find out everything you need to know from our auction pricing guide!
Setting a Minimum Opening Price for Your Item
In some online auctions, you will have the option to set a reserve price for your items. This is a minimum price that bidders have to meet in order to buy your items. So it is a way of guaranteeing that you get a fair price for them.
If the reserve is not met then your items won't sell and you can hold onto them. Once a bidder has met your reserve then other bidders can continue to make offers above this price until the auction closes. This will drive the price of your items up.
If you are featuring your item in an absolute auction then you cannot set a reserve price for your items. Instead, buyers will be solely responsible for setting a price for your item and driving this up. This is a great way to sell items quickly if you know that they are in demand. In this scenario, the market sets the price, and without a reserve, the excitement generated among buyers can help get you a price that can often exceed expectations!
The reserve price that you set for your items can have a big impact on how well they do at auction. Because of this, it is important to consider several things when setting your reserve price. Let's take a closer look at these.
Think About the Condition of Your Items
Secondhand items can come in a whole range of conditions and this has a big effect on their price. An item might be very valuable, however, if it has not been cared for or stored properly, then this will immediately drive the price down.
Most items fall into one of the following condition categories:
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Like new (unused, in original packaging, or with tags)
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Used but in good condition (shows no signs of wear)
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Gently used (fair, shows some minor signs of wear but is still functional)
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Poor (used, may be damaged or not functional, can still be sold for parts)
If your item has any flaws then it is important that you are up-front about these otherwise a buyer may return it. It is a good idea to supply photos to demonstrate what condition your items are in.
Find Out How Rare Your Items Are
Rare items will always fetch more at auction. However, a lot of people miss out on money by failing to recognize rare items when they see them. Because of this, it is important to research any items that you are planning on selling so you don't miss out!
Artwork, jewelry, or furniture are common areas where you will find rare items. Rare or valuable items can include:
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Limited edition items
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Items made by manufacturers or artists who are dead
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Items made from valuable materials
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Items with a famous or interesting history
If you believe that you have a rare item to sell then it is important to promote these and set an appropriate reserve price.
Don't worry if you don't have any rare items in your collection though. You can also increase the value of common items by promoting their potential or selling them in bundles instead!
Check Out Their Current Market Value
Before you price an item it is important to check out its current market value. This will stop you from over-pricing or under-pricing it.
If similar items are still in circulation then take a look at these. Most people expect secondhand items to be cheaper than new ones. So you should adjust your pricing expectations on the cost of a brand new item.
For example, used, secondhand cars are popular because they are a lot cheaper to buy than new vehicles.
Look At How Similar Items Do in an Auction
Of course, when it comes to finding a fair market value for your items, it is also worth looking at other recent auctions.
Seeing how similar items did in recent auctions will give you a good idea of what to expect when you sell your items. When doing this, look at:
If an item similar to yours sold for way over its reserve price then you could set a higher reserve for your item, or completely remove the reserve. This is because you can feel confident that your item will meet its value.
On the flip side, you may find items that failed to sell at auction. In that case, you might want to consider setting a lower reserve price for your items or entering them in an absolute auction by removing the reserve altogether.
Think About Your Shipping Costs
Once you have sold your possessions in an online auction, you will need to safely send them to the winning bidder. Depending on the value of your items and their size, this can be an expensive job. So it is worth considering this cost before you list your items.
In most auctions, items will have their reserve price plus any bids on them. Then you can also add information on additional shipping costs.
Of course, if you are happy for people to collect their items from you then you do not have to worry about this. Alternatively, some sellers increase their reserve price a little and offer free shipping. This can be more appealing to potential buyers even though they end up paying the same for their goods in the end.
Choose the Date and Time of Your Auction Carefully
If you want to get the best possible price for your items, it is a good idea to plan when you auction them off carefully. Some months are more popular with buyers than others.
In America, spring is a popular time to move and this can coincide with higher rates of auction shopping, as people look to fill their new homes. Because of this, it is a good idea to try and sell your items from April through to August.
It is also a good idea to join auctions that run over weekends to give the highest number of potential buyers a chance to see your items.
Look for Auctions That Suit Your Items
In some cases, you may also be able to join auctions for specific items. For example, you could join a jewelry auction or enter lots in a furniture auction. There are pros and cons to doing this.
Listing your items alongside other similar pieces will increase the competition. However, these auctions also usually attract specialists looking for specific pieces.
Because of this, you are more likely to find a buyer and one that will drive the price of your items up. So if you are confident of your item's quality and value this is a good place to start.
Promote Your Item's Assets
If you are going to get the best price for your item, you also need to take the time to sell it properly. This includes:
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Taking plenty of high-quality photos of your items
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Listing your item's best assets clearly in the description
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Providing a thorough history for each item, including points of interest for it
All of this information should be well-formatted so that it is easy to digest. This helps buyers find what they are looking for and appreciate the quality of your lots quickly.
Save Time - Hire a Professional Estate Sale Company or Auctioneer
If you have a large number of items to sell or need to sell the contents of a home quickly (for instance, if you’re moving to another state, helping a loved one downsize, etc.), it may be best to hire a pro. To find an estate sale company near you, search our directory.
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August 20, 2022 Updated 02:06 PM
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