Here is something that I put together for folks facing the disposition of firearms, often that they have inherited. I hope it posts and I hope that it helps. However, much of it is simply a repeat of what other folks have said above. Best of luck and let us know what you decide. (Sorry but I gave up on trying to get the spacing and indents right!)
I. Sell It Yourself
A. Advantages
1. You're in charge and control everything.
a. You decide on the price.
b. You decide to whom you're willing to sell it.
c. You determine when and where it will be sold.
2. Wide variety of options for sale.
a. Simply word of mouth and face-to-face sale.
b. Advertisement in newspaper or internet
c. On-line auction such as Gunbroker.com or Gunsamerica.com
d. Take it to a gun show
B. Disadvantages.
1. It's a lot of time and work!
a. Posting an advert. or listing on-line requires a great deal of time.
b. May mean getting a PO Box and a cheap track phone.
c. If you sell through an on-line site, you have to ship it.
1. Shipping costs both time and money.
2. You may have to find an FFL to ship it for you
3. It may get broken in shipping – what then?
4. It may get returned – what then?
5. Buyer may want refund – "not as advertised" – what then?
2. You may not get the highest price.
a. Are you a good negotiator? Can you stick firmly to your price?
1. Many buyers will try to "negotiate" the price down.
3. It is not necessarily safe.
a. Set location for viewing and sale – don't let people come to your home!
b. Don't put your phone number in any ads or on-line listings!
c. You have to determine whether the buyer is legally allowed to buy it.
d. You should keep a record of the sale "forever".
II. Consign to an Auction House
A. Advantages
1. It's relatively easy.
a. Select a good auction company -- local, regional or national
2. Through their advertising they will reach a far wider audience than you can.
3. Generally (but not necessarily) means higher price.
a. Chance (i.e. "risk") of getting more than you would have asked.
4. Record keeping is easy.
a. You get a receipt from auctioneer when you deliver
b. You get another receipt after the sale.
B. Disadvantages
1. Auction companies will charge
sellers between 10% and 25% commission
2. Most auction companies charge
buyers between 10% and 25% commission.
a. High buyer's fees/commissions discourage some buyers.
3. Chance (i.e. "risk") of it selling for less than expected.
a. Setting a "reserve" price often not allowed, always discouraged
b. Auctioneer must advertise, sellers must be motivated—many variables!
4. Chance (i.e. "risk") of it not selling at all.
a. Single and/or common items can get lost/overlooked in large auctions
b. What provisions in auction contract if it does not sell?
1. You pick up and try again somewhere else? Added cost to you!
2. Auctioneer automatically relists "not-sold" items at lower price?
5. It can take a long time to get your money.
6. You have to trust auction house.
7. Time and expense of legal recourse, if necessary.
A. Advantages
1. It's relatively easy.
a. Select a good gun shop – locally or regionally.
1. A "good" shop is one with lots of foot traffic and is honest.
2. They will give your item(s) more exposure than you can.
3. You have ability to lower price if it does not sell as quickly as desired.
4. By controlling the price, you control how quickly it sells and you get money
5. Record keeping is easy.
a. You get a receipt from the LGS when you deliver
b. You get another receipt after the sale
B. Disadvantages
1. The shop will charge between 10% and 25% commission.
2. A shop may not take your item if it is like others they currently sell.
3. A shop may not take your item if they believe you're asking too much
a. You must set a minimum or the LGS will sell it to one of it "good" customers and simply say "sorry" to you
4. The item will be handled by people = increased wear and decreased value.
5. Chance of it not selling at all.
6. Even a good shop will not provide as much exposure as a good auction house.
7. It may take a long, long time for it to sell.
8. May take even longer for LGS to pay you.
9. You have to trust LGS.
10. Time and expense of legal recourse, if necessary.
A. Advantages
1. It's fast.
2. It's easy.
a. They give you a receipt and the money and you're out the door!
3. No or at least few potential legal issues
4. No additional fees, commissions, shipping expenses, advertising costs, etc.
B. Disadvantages
1. You will not get the highest price.
a. Generally a shop will offer approx. 1/3 to 1/2 of the price it will ask for item(s)
(This is a combination of parts of II {auction} and III {consign to a gun shop})
A. Advantages
1. It's fairly easy
2. Optimum national exposure
a. Probably best chance to achieve greatest price.
3. Relatively few legal issues.
a. Shop gives you a copy of its Federal Firearms License
b. You deliver or send the item(s)
B. Disadvantages
1. Involves time and cost to contact a Gun Shop with strong on-line reputation.
a. Gun Shop with strongest on-line auction reputation probably will not be "local".
2. Involves time and cost to transport/ship the item(s) to gun shop, if not local.
3. The seller will take a commission – typically 10% to 25% of the sale price.
a. In some cases the cost or "fees" of the on-line auction is an additional expense in addition to commission.
4. Have to trust the gun shop
5. Undetermined length of time before receiving payment.
6. Time and expense of legal recourse greater at longer distances.
Once again, lots of repetative stuff, but here it is all in one place. Hope it helps.
