Executors facing the liquidation of movable property of an estate will soon find that it is their most tedious administrative task. Executors who do not perform their duties may be dismissed by the Probate Judge. It is therefore important that they resolutely decide to dispose of estate assets so that bills can be settled and the estate settled.
What you will get from this article
Executors have three main options for liquidation, and I will discuss the advantages and disadvantages of each in this article. Any company chosen to liquidate an estate must be verified; I will explain how to do it conscientiously and offer you the best method of liquidation. I suppose that the dual purpose of liquidation of the executor is to obtain the greatest pecuniary benefit of the estate and to leave the house clean for it to be sold. Of course, there are ways to maximize the cash return for each type of sale, and I'll tell you what they are.
Investing ten minutes in reading this article could save the performer many hours of work.
Option 1: organize an on-site auction
Benefits of an on-site auction:
The auctioneers are very competitive. It should be easy for an executor to find an auction company willing to take the estate liquidation work, and commissions will be competitive. A strong argument in favor of an on-site real estate auction is that once the auction is over, there will be very little clean up work. If you wish, real estate can also be auctioned because auctioneers are allowed to auction real estate and other titled securities. In one day, the house, the car, the boat, the camping vehicle and all the household items could be sold.
Negative points for an on-site auction:
Auctions are motivated by competitive bidding. Therefore, it is necessary to have a lot of people at your auction. Large crowds require good weather, lots of parking, bathrooms, food and refreshments to keep people from leaving. Online bidding can be included to increase participation, but it is the local crowd that excites and raises prices. To attract a crowd, the estate must have collectibles and other quality goods. Current products that can be purchased at the local savings store are insufficient to attract a good public auction.
Suggestions for an on-site auction:
If your estate has many collectibles, such as antique furniture or a piano, an on-site auction may be your best choice. Summer weekends, when it's hot and dry, are the best times to hold an on-site auction. The auction company you hire should be equipped with sound equipment, canopy tents, presentation tables and many aids to make your purchases quickly.
Option 2: Sending an auction gallery
Advantages of the consignment auction
If weather is a concern, you may want to consider logging your items in an auction gallery. Shipments in an auction gallery are grouped according to the type of item in order to maximize turnout and get the best prices from their collectors. For example, there may be an auction dedicated to art and interior design, or musical instruments or ceramics.
Cons for Auction Gallery Consignment
There are many reasons not to log in an auction gallery. For starters, many sales galleries will only use the best objects in the field. Ninety percent of estate assets are composed of items of little interest to the auctioneer, leaving the executor to manage all four. remaining twenty-one percent of estate property. Finally, when an auction gallery distributes the merchandise on several auctions, the sale of all items may take several months, delaying the closure of the estate.
Tips for the gallery auction
Before logging in an auction gallery, ask the auctioneer how your merchandise will be split between auctions; get a guaranteed settlement date. You will also need a plan to dispose of all the remaining estate goods.
Option 3: Sale of tags on site
Benefits for the sale of labels on-site
Selling tags has several advantages over an on-site auction. For those who are not familiar with the sale of labels, the sale takes place on the spot and at home. Companies specializing in the sale of labels are less common than auction companies. At a tag sale, everything in the house has a price, much like at a garage sale. Buyers will browse the house and choose the items they want to buy. When buyers arrive at home, they take a number and are admitted home when their number is called. Tag sales usually start on Friday nights and end on Sunday nights. It is therefore not necessary to provide food or sanitary facilities. The sales of labels can take place in good weather, when it rains or it rains
Disadvantages of selling labels on the spot
The main disadvantage of hiring a tag-selling company is that tag-selling companies are not subject to the same legal standards as auction houses. Auctioneers and estate agents are legally bound to the estate by a relationship of trust. A fiduciary relationship legally requires the agent to act at all times in the best interests of the estate. The trustees are licensed by the state, must pass the tests, be related, must keep all funds in an escrow account until distribution, and must settle the account with the estate within a specified period of time.
Trustees must also keep accurate records and follow certain protocols. Non-compliance with procedures by a trustee may result in fines or loss of license. The companies selling labels are not subject to the same legal standards, although they certainly have a moral obligation to the estate. Label companies can handle the details of selling and distributing money as they see fit.
Another problem related to the sale of labels is that there usually remains goods after the sale. There is often a LOT of goods left. When there are many items left, the executor then has a cleaning problem because the house must be left "clean" before a real estate agent will list the house for sale. Unlike an auction, where prices go up with each offer, the label sellers want to negotiate a lower price for everything, which not only takes time, but also costs money to the estate.
Tips for selling labels on the spot
When working with a label selling company, read the contract carefully and make sure that the terms of payment are well understood. the operator should have a sound pricing plan, adequate staff and a solid balance sheet.
What about Internet sales and retail sales?
Internet sales work well for items that are easy to ship, such as small collectibles, books, and works of art. Before deciding to sell these items online, remember that having a good assortment of collectibles at your auction or tag sale is what will attract buyers to your event. If you sell all the good collectibles online, your participation in the sale will not be very good. Do not even consider a retail shipment; they will take too much time to sell your items.
How do I know if I'm dealing with a reputable company?
Unfortunately, asking for references does not always work; no one gives a wrong reference. The Business Ethics Office lists evaluations of some companies, but not all. In an auction company, most states have a professional licensing committee that can give you auctioneer license status and tell you if there are any complaints in the record. It is much harder to control a label marketing business because no organization is monitoring complaints. A website that is useful is http://www.ripoffreport.com. When you are on the site, look for the name of the company you want to investigate. also type the name of the owner to see what it raises.
Hire a company with a strong Internet presence
Nowadays, it is imperative for a company to have an online network. A well-connected business in the online world is likely to be a well-connected business locally. It is unlikely that a company with a mediocre or non-existent website could use the Internet to generate sales for your event. Searching Google with the company name or web address is the best way to find out how connected they are. Go to the Google search bar (not the address bar at the top of the page, but the search bar in the center of the page) and type the web address of the company starting with www. How many search results are returned that relate directly to the company you are investigating? If the corporation is a national franchise, disregard the results of the general franchise and only count the results when the local corporation is mentioned. Ranking well with search engines does not necessarily mean that the company will be best suited to your needs, but it is a good indicator of the professionalism of the company. Typically, companies that get a lot of returned results do so because other organizations want to associate with experts in their field. They connect to the experts' website. A large number of link companies is like a "vote" for the related company. A company with many Google results is generally recognized as an expert in its field.
So, what is the best way to liquidate an estate?
The best type of sale for the liquidation of an estate is to hire a licensed trustee to sell the property of the estate in one day, on bare walls, at any time of the year. This would require an event that includes both a tag sale and an auction run by an auctioneer. Since tag sale operators are generally not licensed auctioneers and auctioneers generally hate selling tags, it is a difficult solution to implement. There are, however, auctioneers who combine these services. Finding such a company will give the performer the flexibility to make a sale at any time of the year, the ability to sell to the bare walls without anything left, and the assurance of dealing with a trustee approved and guaranteed by the State.