There are many ways to collect numismatics and there are many places that a collector can find items to add to a collection.
Collecting can be an expensive hobby regardless of what is collected. Whether it is numismatics or comic books, one piece is never enough and there is always a desire to collect an entire set regardless of the parts that make up the set.
When collecting numismatics, we know about the coin dealer, coin shows, and online auctions from the major auction houses and eBay. But did you know there were other online auctions that you can tap into to find collectibles with better prices?
There is an entire community of resellers working with estates, relocations, downsizing, and liquidation that offers a way to find bargains.
Estates are an easy concept to understand. Someone dies and the family, executor, or personal representative of the estate has the responsibility to clean out the home, apartment, or condominium of the decedent so that everyone else can move on. Regardless of how gentle we try to be, everyone dies and something has to be done with the stuff left behind.
This is where estate sale companies are a help. These companies are contracted to whoever is trying to sell off the estate and hold a sale of the goods. Some estate sales are held over one or two weekends. Buyers go to the house to see what is for sale and buy what they want.
Over the last few years, there has been a growing number of online estate auctions. Rather than holding a sale, the items are either staged in the home or in a warehouse and people bid online. Estate auctions have been extended to relocations, downsizing, and liquidation of seized properties and even commercial assets.
Online estate auctions work like any other online auction. You bid for the item you want and hope you win. When the auction is over, you pay for the item plus a buyer’s premium, similar to what you would pay if you were buying from an auction house. In most cases, the buyer’s premium ranges from 10-15 percent of the selling (hammer) price. In most cases, local sales tax is charged.
Although you can find bargains at these auctions, it is not always an easy process.
First, not every company works the same. Unlike eBay where there are consistent rules sellers have to abide by, estate auction terms and conditions can be very different than what you are used to. Before you bid, read the terms and conditions. If you cannot abide by them, do not agree to bid on the auction.
How do you agree to the terms and condition? Register on the auction site and click the button for that auction. Registration requires you to identify yourself including entering a valid credit card. When you agree to the terms and conditions of the auction, most companies will put a hold on your credit card for a set value to determine that the credit card is valid. These holds can range from $1-100. Remember this if you use a debit card. In most cases, your credit card will be charged for the purchases immediately up the close of the auction.
The auction platforms may be very different than what you are used to. These auction platforms take their cues from services offered by major auction houses and not eBay. Their catalog is a list of lots for sale that includes pictures an additional information. Not every item includes good pictures or descriptions and not every auction service uses their software to its best capabilities.
Some companies offer a live preview. If the auction is being staged onsite, then you can go to that site during the designated time and examine the items up for bid. Auctions held from warehouses usually hold multi-day previews. If you cannot attend a preview or if there is no preview offered, you have to rely on the pictures. If the picture does not give you the confidence you need to bid, pass on that item.
These auctions allow you to enter a maximum bid and will raise your bid price until someone outbids your maximum, similar to what you may be used to on eBay. One big difference is that most of these auctions use a soft close system. A soft close happens when a bid is received at the last minute of the auction. When a bid is received the end of the auction is extended. Most auctions will extend the end time 3-5 minutes to prevent sniping.
Most of these estate and liquidation auction services set their lots up with a low starting price. Usually, the opening price is $1.00 and sell with no reserve. Some have other practices that they use to protect the seller of higher-priced items. But this scenario can be a recipe for finding bargains. In one auction, I was able to purchase three Carson City Morgan Dollars in GSA holders for about 75-percent of than their Greysheet value even after sales taxes and buyer’s fee were added. I was then able to sell the coins to a client who paid their Greysheet value giving me a nice profit for the day.
Another issue you will have to work around is that many of these auctions do not provide shipping. If you read their terms it will say that if you win you will have to pick up your items at a specific place during the designated pickup time. If you want your items shipped you will have to work with a third-party shipping service such as the local Parcels Plus or UPS Store.
There have been mixed reports using third-party shipping services. Some are very good, contientious, and will take care of you but at a cost. There are others that are not very good and have been known not to pack the items well and pilfer from your winnings. There is no way to know the rating of the auction service’s recommended shipper. You may want to try to find online reviews of that shipper.
A few of these estate auction companies will provide shipping services. If you require shipping, you may have to do this as part of the registration or contact the company immediately following the close of the auction. Those companies that provide shipping will charge a service fee in addition to the postage.
Remember, the larger and more expensive the item, the more will be required for it to be shipped.
When purchasing anything from an estate auction, it is important that you read and understand their terms and conditions before you bid and buy. Each service has different terms and conditions that could turn your purchase into a nightmare. If you are careful, you can find bargains.
Where can you find these bargains?
This is where I give up the secrets that have allowed me to build a collectibles business. I have used these resources to travel the region to find cool items that have made a lot of people smile.
My first go-to resource is EstateSales.net. I have found no other resource with the most complete listing of every estate sale and auctions for whatever region of the country I am located. It is a free service for buyers. Either select your state or enter your zip code to find all of the sales in your area. Even if you are visiting your relatives out of town, enter their zip code and see if you can find some bargains.
Listings on EstateSales.net include the address and hours of the sale. If it is an online auction, it will provide a link to the auction site. Each sale page can include photos of the items for sale. While photos are not required, most listings include them. You can get a preview of the items for sale to help you decide whether it is worth the trip or the effort to bid.
They also have a mailing list you can sign up for that will send you sales in your selected region.
Using the listing on EstateSales.net, you will learn who some of the local auction companies are. You can either watch for their sales on EstateSales.net or go to their website and sign up for their mailing list. Some of these auction companies continue to have live, in-person auctions and it may be something you will consider attending.
Another place to find estate auctions is on the site that provides the auction services to the various companies. One of the largest services is HiBid.com.
HiBid is a great site for finding a lot of auctions in a lot of places and supports a few different auction formats including online only, live webcast auctions, absentee bidding, or just catalogs for auctions that will be live or even on another platform. They will allow you to search across auction companies and regions.
As I am writing this, there are 1,134 open auctions with 794 being internet online-only. Of those online-only auctions, there are 3,607 lots in the Coins & Paper Money category.
AuctionZip.com is another auction hosting service that is very auction company-centric. While you can search across auctions its model is to try to protect the propriety of the companies that use its site. Once you see the difference in the interface between HiBid.com and AuctionZip.com, you will understand why the former is more popular.
One nice feature about AuctionZip.com is that when you do a search it lets you look at the auctions open for a particular day. If you have time restrictions, it will allow you to better tailor your bidding times. This is good if you are traveling so that you do not have a conflict with the end of the auction.
LiveAuctioneers.com is a similar service but serves a more upscale audience. Their service has stricter requirements as to who can list auctions on their platform. What this does is provide better assurances for the buyer that they are dealing with a more established company. Currently, there are 7,780 items listed for auction in the Coins, Currency & Stamps category.
A feature of LiveAuctioneers.com, aside from its clean interface, is that they have a consignment service that helps connect you with an auctioneer that will help sell your items. If you have something that you want to sell at auction but do not know who to speak with, this is a good service to help get you started.
One of the oldest services is icollector.com. They are a strictly collectible market auction service. Although their catalog is smaller than the others listed, their listings are comparable in the collecting categories. iCollector.com may not be as elegant as other services, but they do have the inventory for you to look at. There are just under 15,000 lots of various numismatics. Their strength is that the numismatic categories are divided by country and type. Where other auctions make have a general category, iCollector.com has categories to allow you to narrow your search down to what your interest.
Last, but definitely not least, is Invaluable. Auction companies that use Invaluable are what could be classified as mid-to-upper range companies. These companies are more concentrated around art and furniture but have added collectibles and other categories likely to facilitate sales from companies that buy higher-end estates in order to keep them as clients. Most of the auctions on Invaluable are absentee bid auctions with some items available for immediate sale. As I write there, there are 20,485 lots available in the Coins, Money & Stamps category. In fact, over the last few weeks, gold and silver bars dominate the listings on the first page of the category.
Invaluable is also a site with a very clean interface that is very welcoming. They also divide their larger sections into individual categories so whether you are interested in US Coins or Ancient Coins, you can browse that section without clutter.
Since I started writing this article, I won several silver Chinese Panda coins from an online estate auction. Most of the coins were purchased at or below the spot price of silver even when adding the buyer’s premium. One of those coins that were purchased a little over the spot price is the very popular 2000 Panda that can sell for a lot of money. There are other coins that I purchased at less than market value.
Even though I am not a fan of third-party grading services, especially for modern coins, I will send these coins to one. Although I think all but one is genuine, and it is possible it was a pocket piece, as long as the 2000 and amake up of the pre-2000 silver Panda coins are genuine, I will more than makeup for the cost of the entire purchase plus the grading fees.
Now go out and find your own bargains!