I recently presented a webinar in conjunction with MaxSold on How to Safely Downsize During COVID-19. I gave an overview of the downsizing process and an average timeline showing the steps to a successful downsize. During the session, I was happy to provide answers to common questions about downsizing auctions.
How do I know if I’ve organized enough for a company to come in for downsizing?
This is unique to each individual. Some people prefer to sort through their possessions and make decisions long before they decide to downsize. In some cases, when assistance is needed, they call in the Out of Chaos team. Whether you are organizing or having someone come in to assist you, make sure you have no regrets.
When downsizing, treat it like a high school exam. Do the easy stuff first – the possessions you know you will definitely keep or toss. Put these things into their respective areas or piles. For the pieces you are unsure of, do those last. If you are still unsure, keep them and make a careful, well-thought-out decision later on. It may mean you have to store them for a while, but that might be better than disposing of something you will wish you had kept. Give yourself a deadline for making a final decision. Often, when people move into their new home, they find it easier to decide. They know right away whether or not the possessions fit with their new lifestyle.
If you are managing someone’s estate, make sure you extract and keep any paperwork, especially legal and tax-related documents, as well as personal and sentimental assets. Sometimes trustees ask the Out of Chaos team to be on the lookout for these documents and specific memorabilia as we downsize an estate.
What is your advice for smaller estates with “average quality” items? Can we still do an online auction?
Yes! Many people do not take into account how much their own time is worth. You take time away from your job and your family to list items in online classified ads, answer many emails about the goods, meet with buyers, arrange payments, manage pickups or deliveries. It is a hassle, especially when buyers don’t show up when they say they will!
If you choose to hire a removal service (e.g. junk hauler), the cost can be over $500 per load plus any recycling (e.g. mattresses, tires, etc.) or landfill fees. It may take several loads to clear your home.
With MaxSold online auctions, 95% or more of everything you list for sale is sold. See our past MaxSold auctions to give you an idea of what gets sold and for how much. You can then compare what you would earn at auction with the costs of removal services.
What is a “lot”?
A “lot” is a group of similar things sold as one unit, such as a set of pots and pans, the contents of the linen closet, or the books with the bookshelf. We group possessions on a theme. We do not place jewelry with kitchen utensils. Ideally, a “lot” should fetch a minimum bid of no less than $30.00. You can read more about creating lots on my post about Preparing for an Online Auction.
Is it feasible to set up an auction after the house sells if the closing date is in 30 days?
When you prepare for a MaxSold auction, we display the lots of goods on counters, floors, beds, etc. which is a disadvantage when showing the house to potential buyers. It is better to have the auction after the sale has closed.
The normal auction process takes about 14 days. The sale itself is seven to ten days. We plan one to three days of preparation before the auction and one to three days for collection and final removal afterwards. It is possible to run an auction in 30 days. However, we suggest that you decide what you want to keep, sell, and dispose of before the house is listed to reduce the preparation time.
Are people buying at MaxSold auctions during the pandemic?
This is one of the most common questions about downsizing auctions. I’m happy to say that the answer is a big YES! There are a considerable number of bidders out there shopping and ready to buy.
What about social distancing? What precautions are you taking for sellers and buyers? How is MaxSold handling pickup?
During the pandemic, MaxSold is only running seller-managed auctions (seller prepares items and lists them through the MaxSold app) and partner-managed auctions (seller hires a partner who has social distancing protocols in place).
Out of Chaos is a MaxSold Partner. Our social distancing protocols include but are not limited to, team health checks, using proper health and safety equipment, maintaining social distancing from homeowners and other team members, and cleaning frequently touched surfaces.
When bidders are successful, they select a five-minute window on their pickup day to collect their purchase. Lots can be removed from the home and placed in the garage or porch, so buyers do not enter the home. Face masks are mandatory for collection.
In multi-unit buildings (condos, strata, apartments, etc.), there are restrictions. Often we can arrange with building managers to use the parking garage or loading dock for pickup.
Since it is challenging to hold sales in multi-unit buildings, can we hold a sale out of storage facility?
Out of Chaos has done this before. Storage facilities have safety and security protocols, as well as COVID-19 health protocols. We will work together to find a suitable solution for your situation.
What happens if a bidder does not pick up their items?
Bidder must register a credit card with MaxSold when they sign up. The registration agreement states that if the bidder is successful, they must pay for their purchase regardless of whether it is collected.
Since the bidder knows when the pickup time is, they must ensure they are available during that time slot before they bid because when the auction closes, the winner’s credit card is automatically charged. MaxSold only provides refunds if we have mis-described the item or if there are some extenuating circumstances; for example, the buyer has contracted COVID-19 and is in quarantine. If the buyer is just a “no show,” they may be banned from the MaxSold site and may never be permitted to bid again – on any auction.
Who is responsible for the goods if the buyer is a “no show”?
It is the seller’s responsibility to deal with the disposal of uncollected and unsold items. The good news is that the seller still receives the money for the purchased but uncollected items.
These are the more common questions about downsizing auctions, but if you have other questions, please feel free to contact the Out of Chaos team, send us an email at info@outofchaos.ca or call Linda at 604-813-8189.
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