Looking to declutter and planning a garage sale?
You could be throwing away thousands of dollars by doing so, experts say.
The Property Clearance Company co-founder and CEO Bob Morton has warned Aussies clearing out homes that garage sales are the “worst possible way to sell valuable items.”
And it’s an easy temptation to give in to – the idea of quick sales and moving a large volume of stuff quickly.
But Mr Morton says this often results in huge potential profits as people snap up items at a fraction of their true value and then resell them for massive profits.
Mr Morton says people should resist the urge to sell things like vintage jewellery, artwork, collectibles, furniture and rare household pieces at garage sales, particularly at a highly emotional time, like when a family member dies or is mod into aged care.
Garage sales can be a great way to move low-value goods. But know what you’re selling. Picture: iStock
“Families think they’re doing the right thing by holding a garage sale to clear out a home and make a bit of money,” Morton says.
“In reality, it’s often where thousands of dollars quietly disappear.”
He said garage sales were a risky way to sell big-ticket items as they tend to attract opportunistic buyers who know how to get what they want on the cheap.
“You’re not selling to everyday people,” he says.
“You’re selling to collectors, resellers and dealers who know value instantly.
“They walk in, spot something worth hundreds or thousands and buy it for $5, $10 or $20.”
“These same items then end up in auction houses, antique stores or online platforms, sometimes selling for 10, 20 or even 50 times what they paid.”
He says making emotional decisions can cost families dearly, especially in the instance of needing to clear a home on a deadline.
Bob Morton, co-founder and director of The Property Clearance Company
“When someone passes away or moves into care, families are overwhelmed, time-poor and often just want to ‘get it done’,” he says.
“That’s when mistakes happen.
“Things are undervalued, rushed out the door or sold without any real understanding of what they’re worth.”
He said many assumed an item was worthless because it was older or not to their tastes, but when targeted at the right buyer group its true value is revealed.
“The difference is not the item, it’s how and where it’s sold,” he says.
“Don’t be a fool with something that could be worth real money,” he said.
“A quick conversation with an expert can completely change the outcome.”
He said consulting with an expert can help determine if an item is low-value, or whether you’re sitting on a desirable piece that people could pay big bucks for when sold through a specialist auction houses or curated sales platform.
“That’s where you get proper competition, proper pricing and proper respect for what’s being sold,” Morton said.
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“With the right guidance, you can clear a home efficiently, respectfully and often with far better financial outcomes.
“It’s not about holding onto everything.
“It’s about making informed decisions.”
Garage sales have their place. But make sure you’re not losing money in the process.
The warning comes after Adelaide man Jordan Hagicostas revealed he had used the proceeds of selling his Pokemon card collection to help fund a property purchase.
The Adelaide mortgage broker says he is a collector first and foremost but his investment knowledge helped him make the hobby lucrative.
With the Covid pandemic fuelling demand for the popular cards and increasing their value significantly, Mr Hagicostas said he made $30,000 to $40,000 within a few years.
Mr Hagicostas said he saw people using money generated from selling collectables and other side hustles that started as hobbies to purchase a home all the time through his work as a mortgage broker.
“I’ve seen this work quite well for people as a way of getting into the market,” he said.
He said some people could be sitting on collectables worth thousands without even realising, especially if they still had some stashed away from childhood.
He encouraged people to get advice from experts before selling any collectables they weren’t sure about to ensure they were getting their full value.
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