Auction Houses

[MrCollector]

Starting to think about thinning out my collection and thinking of what is the best auction houses for consigning. Any thoughts on who the best would be? Names that come to mind, VCA, Showtime, Rich Penn, Morphy's and Julias. Not sure if I missed anyone.

[jocdvm]

Why don't you list them here under items for sale? You wouldn't have to pay an auction house a commission then.

[Mendozaco]

Jocdwm hit the nail right on..

Choosing the proper way to sell your personal items involves the right strategy, fees consideration and evaluation of all additional hidden cost. Before you consider electing the proper method to use such as; VCA, Showtime, ebay, CoinOp forum and others, you will need to consider the following items;

# 1, The goal is to maximize the highest net return per item (no-brainer). What I mean about “net return” is what is left after commission and consignment fees that can range from 20% to 30%, shipping cost and taxes. Not how much is was sold for or who sold it, but the net amount of the check you receive. And yes taxes. Starting 2012 auction houses are required to issue forms 1099-Misc to report the gross sale above $600. Not all comply with the regulation, but if you get audited you will feel the hit of capital gain taxes. As a practicing CPA, I have witness my clients in the past not satisfied with the net results after they used an auction house. (e.g. if you have a five million dollars estate then the fees are affordable, but if you’re selling a $3,000 item and it will cost you up to 40% of the value to sell it, then you need to evaluate the costs before you list your items with the auction houses)

# 2, The right target, The internet provides you with a wide range customers. Some places charge fees because they target to a specific market and customers. Our forum targets a specific niche and individuals with the same interest at no cost. VCA is a sound company, but don’t forget that they are in it for a profit. Choosing a name brand is not always to your advantage and the results may reduce you net check.

I agree with jocdwm. You are in the right place. Advertise your items with our forum will maximize your net results. All you need is to take pictures of your items, post your prices and provide shipping. All of us will have a change to purchase what you have. If I was selling, I prefer someone that enjoys what I have and will take care of what I have invested time and effort in accumulating. Price is secondary, although important. The work is modest. The outcome is worth it. Sell it yourself.

# 3, Taxes, the government?? Everyone has their own opinion. Call your accountant… Here is my tip and what I will do before I gone. I will use the gift tax laws for my advantage. I will give my son the items over span of several years and help him sell it. Knowledge is important when you’re selling your things. Right?? The reality is that you have the knowledge and they don’t. When you are gone will your family know what they are selling? In most cases no. I seen idiots sell their parents assets for nothing.

The gift tax rules allow you to give/transfer funds to your kids including assets up to $13,000 per child, per year without causing taxes to your children. Transfer the items to your children and file the gift tax return by April 15. Help them sell it and maybe they will buy you and wife a nice trip to the Bahamas or maybe not.

Sorry for the tax lesson. I did not want to bring taxes to this forum, but I was having fund with the topic.

I send you my bill later.

Alex Mendoza
Rockville, Maryland

[Dave]

Auctions are good places if you want to unload lots of stuff quickly or you are lazy. They are also useful if you have stuff and don't want your name associated with it (e.g., reproduction Rock-Ola horse race machines, fake War Eagles, phony Taverns, etc., etc.). As we all know, most auctioneers will not identify the fakes for you. In some cases they will use the word "contemporary". Auctions are NOT for the uninformed buyer.

Auctions can also good if you have a very rare piece (e.g., Caille Globe). This doesn't always work though. I bought a Caille Gum Vendor with music last year at a VCA auction. This is one of three known to exist (to my knowledge) and it went for, what I think, was a reasonable price. So auctions are a crap shoot.

I was at an auction in Denver a couple of weeks ago. They had a decent Caille Ben Hur counter wheel and some Black Cherry Half Tops in fair condition. The auctioneer said the Ben Hur was the "only single wheel machine" that Caille ever made (FYI, it sold for $4,700 + 18% juice to an online bidder). He also proceeded to say what a nice machine it was including the back door and original lock. It was so obvious the lock was not the correct lock

He then proceeded to say the Black Cherries were in "mint" condition Wow, I didn't know Mills made Black Cherries with half of the black paint worn off the sides.

Fees are very high though and although most auctions are advertised as no reserve you can bet the seller has made arrangements to buy back the item if the price is not reached at what the seller deems acceptable. Usually the seller will still have to pay a fee for stuff he buys back though (probably 10% - 15%). Also, don't forget about the cost of shipping the item to the auction house, the cost of storage, and the cost of shipping it back to you in case the item does not sell. Also, you will get a 1099 from the auctioneer if the total of your sales is over some amount (I think someone said $600).

I have never gone to a Morphy auction and probably never will because I refuse to pay 20% juice. I heard the last auction he had was poorly attended and there were many buybacks because prices were so bad.

I sold a LOT of machines last year (http://www.IBuyOldSlots.com/forSale.php). The majority of them were through word of mouth. I did sell a few on eBay though.

If you don't need to sell stuff in a hurry I would say put a "realistic" price on your stuff and just let people know. COCA has a spot for classified ads on their site. I have never had much luck there though. If you don't know what a realistic price is go to http://www.AntiqueSlotMachinePriceGuide.com (which I run).

You can list stuff on this site for free. There is also a for sale section at http://www.AntiqueSlotMachinePriceGuide.com where you can list stuff for free.