Large Collection Liquidation

[Chedderbob]

I need opinions on how to liquidate a large collection of firearms. Here's the back story.

My sister's father-in-law has been having serious health complications as of late. This gentleman has the largest private firearms collection I have ever personally seen. It takes up a full room of the house to the point where you can walk about 3 feet into the door, and cant move anymore. Just picking through it for about 10 minutes I have found everything from a Hi-Point 995 to a Nighthawk custom. I'm pretty sure I have found at least 2 of every pistol Kel-Tec has ever made.

The point is this gentleman may not last too much longer, and I am about 95% sure that my Brother-in-law's family is going to ask me to help liquidate the collection, as I am the only person with any sort of firearms knowledge.

They have expressed that they have no real interest in keeping any firearms except for maybe the old Winchester he killed his first deer with, and the gun that taught my Brother-in-law how to shoot. This leaves 250+ guns for me to try and turn into inheritance money.

The family has indicated that they aren't really pressed for time or money, so they would like to get as close to fair market value as possible.

My choices as I see them:
1) Rent a table at a gun-show. This is probably the least desirable option in my opinion because people always wanna trade at gun shows, and I'm not 100% sure of the full legalities in my state of gun-show laws.
2) Gunbroker every last piece individually. This is looking like the best option to me. Although it will be time consuming, it will essentially legally transfer every firearm, and I have never gotten anything less than fair market value on Gunbroker.
3) Find a consignment shop. The only gun consignment shop in my area isn't even close to being able to handle this kind of volume, so I would need to find a shop that is, but it seems like the pain-free option.
4) Auction. I haven't really looked into this much, but I'm told that auctioneer fees can be quite outrageous, and it seems that it would be "hit-or-miss" as far as netting the full potential value of the guns.
5) Any of your suggestions. Anything you might like to add would be greatly appreciated!

 

[Carne Frio]

I would start with the gunshow. Cash only. With the size
of your collection, you will most likely need a combination
of methods to liquidate. Leave the items with a strong
family connection with the family.

 

[lowerunit411]

i would start with an appraisal from a reputable appraiser.

 

[PRM]

Know the value.

Next, get great pics.

List them on Gun Broker with a reserve or start them where you want. They will automatically re-list until sold.

Also, Guns America is a good place to list them.

Just make sure you have an FFL involved on shipping.

 

[mr.scott]

Honestly, for there high dollar/rare stuff put it on gunbroker. for everything else, rent a table at the gun show and mark fora quick sale. get it sold and done with.

 

[CoRoMo]

2) Gunbroker every last piece individually. This is looking like the best option to me. Although it will be time consuming, it will essentially legally transfer every firearm, and I have never gotten anything less than fair market value on Gunbroker.

This one.

I'd never, ever do the gun show thing, consignment or try and set up a local auction.

The gun show will cost money with no guarantee of selling them all. But you'll certainly get a lot of jokers wanting to trade you their pool table for a few of the guns.

Consignment could turn into a nightmare if you don't use a good shop. You should expect to only get the MINIMUM for each gun via this route.

A local auction would just be a headache and you may as well expect a few pawn brokers to show up and bid almost nothing for the merchandise.

An online auction is completely under your control. You set the starting price and if it doesn't sale after a few go-rounds, decide if you want to lower it from there. Shipping is already a separate cost, so it won't cut into your margin. Just take good pictures. Good pictures bring good prices.

Just make sure you have an FFL involved on shipping.

Only on the out-of-state receiving end. You can legally ship firearms all day yourself. You cannot mail handguns.

 

[youngda9]

You can probably find a guy in your area willing to sell them all individually on gunbroker for a % of the cost. Or you can list them all yourself. Get a good idea what they are worth and set a reasonable starting price and let them go for what the market allows.

 

[Mike1234567]

If gun sales is anything like camera sales... GB all the way. Know which pieces will sell better as individual items and which one's have more value as groups (very closely related collectables). Take great pics and place well-written ads with all relevant information without being too wordy. Use well-worded ad titles.

Do you think they would be willing to give you a commission or let you keep some decent firearms for your time and trouble?

 

[Sgt_R]

2) Gunbroker every last piece individually. This is looking like the best option to me. Although it will be time consuming, it will essentially legally transfer every firearm, and I have never gotten anything less than fair market value on Gunbroker.
3) Find a consignment shop. The only gun consignment shop in my area isn't even close to being able to handle this kind of volume, so I would need to find a shop that is, but it seems like the pain-free option.

One of these. My preference would be #3, but you would have to find a shop that could handle the job. If you're anywhere near SC, contact Brett at Columbia Arms (THR member mgkdrgn), he specializes in this sort of thing. I hate to sound like a shill (I just mentioned him in another thread 5 minutes ago, then I saw your post), but he's a good dude.

R

 

[svtruth]

I think my first step would be to inventory all of the guns with serial ##.
Then, isn't there a Blue Book of values?
Then you'll know what you have.
Or go the reputable dealer route.
Good luck.

 

[X-Rap]

I would say you need to have a sit down with the heirs and decide on a proper reward for what will be a time consuming enterprise for you, I would also demand to be the only one involed so things can be kept track of.
You also need to get your arms around what is there and get it inventoried and at the very least classified and assigned a value (I would get a current copy of the Blue Book).
If the collection is known I would also get secure storage, it sounds like it is just crammed into a room.
His friends may come wanting some of his guns and even making outrageous claims of ownership, if they want to pay a decent price honor their friendship but beware that they may know about that Registered Model S&W or the mint Henry that is stuck way back in the closet and if you or one of the heirs doesn't have a clue it might go for pennies on the dollar.
Reserve the right to claim guns as payment for your work.

 

[InkEd]

I would second using gunbroker for such a large collection.

See what they are selling for on Gunbroker (ignore all the overpriced re-listed ones.)
Set the reserve a respectable bit below that number. (You can do no reserve too.)

Compile a list of all the guns that will be up for auction. Also, when the auctions will start and end on the various forums. I suggest you only do about ten at a time for the sake of simplicity. (People will be getting tax refunds relatively soon, so they will have money to spend on them. So, I would get a move on to maximize your profits.)

Be sure to stick to your scheduled time for listing them and everything. People will be looking for them of you mentioned them (with dates) on the various forums. Keep the auctions short too (a week is pretty good, especially if you tell folks in advance.)

Anything that doesn't sell should be re-listed after everything else has been cycled through the auction. This time with a very small or no reserve on them.

 

[littlebluevette]

"i would start with an appraisal from a reputable appraiser. "

+1

 

[X-Rap]

"i would start with an appraisal from a reputable appraiser. "

An appraisal is fine but you better know what you have first, many common guns that may still be NIB or simple to appraise due low market value or condition will be a waste of time and money. A rack of old Winchesters or Colts is a different story. Get your arms around what is there.

 

[Mike OTDP]

1. Inventory everything.
2. Don't bother with the Blue Book, it can be misleading, especially on the rarer items. Go on GunBroker, look up under old auctions - see what things sold for. This will allow you to establish a reasonable estimate of the value.
3. If legally possible, sell guns to his friends at estimated fair market value. You might cut them a bit of a break, especially for the amount of GunBroker fees.
4. Put anything valued below ~$2,500 on GunBroker. Concur with InkEd about setting a reserve at about 75% of the estimated FMV. Also concur with cycling through everything, then put what's left over up with a reserve of about 50% until it sells.
5. Put anything valued above ~$2,500 with a major firearms auction house. I mention this because there seems to be a limit on what GunBroker buyers are willing to pay. High-end firearms will get more money at a dedicated firearms auction with Little John's, Rock Island Auction, or something similar.

 

[inclinebench]

Depending on where you are, and the local culture, hiring an experienced auctioneer might be a good idea. These folks have experience, and many have a knowledge of frequent attendees that look for particular items (ie firearms). They can advertise and then set an auction with reserve prices for some items and open bidding prices for others. What they do not auction off you could then sell on GB. I have seen a local auctioneer do really well with some pretty massive collections. I think an all or nothing approach is cleaner, but doing an auctioneer and GB would maximise your monitary returns, and greatly lessen the burden on you. Also, some auctioneers are also set up to do estate sales, and with a collection that size, they could bring in a huge audience of buyers who are specifically looking for guns. Just my thoughts.

If there are any K31s....shoot me a PM!

 

[rule303]

I would call a local auction company. People really seem to get caught up in a live auction and prices can get close to retail, or higher. Most auctioneers will work for a 10% buyers premium, that does not cost you anything (if the collection is large enough). You have an auction, and you are done in one day.

 

[X-Rap]

The actual disbursement will vary by local IMO, I have bought and sold many hundreds of guns over the years and never used the Internet and was not impressed with the deals when I looked.
There are places that I wouldn't be disturbed to list a collection in the classifieds in the local paper but I would still get them in secure storage.
In my area live auctions almost always get more money than retail, I don't know why but it is rare to find a deal unless it is real high end and sales that have a half dozen guns will draw people in better than those that don't.
Your method should definitely be tailored to what works best in your area and for you individually, for some it may be online, for me it would probably be one piece at a time through gun shows, word of mouth, FTF trade and cash just because I enjoy the art of the deal and just being around guns and those who are like minded.
If I wanted to maximize the return, live auction with a local auctioneer that has background in firearms and estates would be best around here.
A hint for auctioneers, still do your research and print a paper on each gun giving make, model, caliber, age and other info that might help sell it. I have seen some guns sell very well at auction but the knowledge of the auctioneer at times was beyond atrocious, they know a little about a lot of things which is fine if they can squeeze all the money from the crowd.

 

[AIM]

what Mike OTDP said.

 

[loneviking]

The problem with Gunbroker can be the shipping. The gun has to go by UPS from one of the terminals and not a local store. For me, that's an hour away. If its closer for you, Gunbroker could work. I've done several deals off Gunbroker and all went well. I'd also sell some of the more common ones through local classifieds. I've sold a number of guns in the Walmart parking lot----always well armed of course, and never had a problem. Get ID and keep a record of that sale! Anything rare, find an experienced auctioneer who can get you top dollar. Any left handed rifles in there?

 

[Hamilton Felix]

Well, I guess if you wanted an excuse to go to a lot of shows... But really, you'll spend a lot of time at shows before you sell all of that.

If you have a friendly FFL to ship, the Gunbroker thing would probably have the best return.

The consignment dealer approach could be less headache, but it will still take time for money to trickle in, and you won't get as much. If you sell the collection to a dealer, you'll be lowballed.

How serious are the others about getting the best returns? Serious enough to help with the work if you go the Gunbroker route?

Heck, I've bought guns from folks who just mentioned them on forums I belong to. I have a friendly FFL nearby. But all methods that maximize your return will take time. Talk it over with the others.

And just so someone doesn't complain later, that appraisal is a good idea. You can do legwork yourself if you want. I used BlueBook in my divorce. I have an online membership now. But regions and prices vary, so the advice to look online and see what they sell for is good.

 

[russ69]

To be realistic, selling a large collection could turn into a full time job for a year or more. Just posting on Gun Broker would eat up all your spare time, not to mention the accounts receivable, packing and shipping/insurance.
If the collection is large and it sounds like it is, a well advertised auction would be the best way to disperse a large collection. You be able to set reserves and you'll have more than one buyer biding for each piece. The collectors will come out of the woodwork for a large gun collection.
Taking pictures, writing a description, downloading pictures and all that GB stuff takes a lot of time. If you sold 14 guns a week it would be a lot of work, then you have to hand hold each buyer, no thanks.

 

[UpTheIrons]

I don't know where you are located, but around here, Dury's Gun Shop has a pretty good reputation, and they'll go anywhere to appraise a collection. Here's the link to their "Sell Your Guns" page:
http://www.durysguns.com/sell-your-guns

 

[HGM22]

As others have said, I'd first catalogue everything you have, and separate those guns you know market value well (Kel-tec, Hipoint, Glock etc.) from any that you don't (for me, for example, I wouldn't know much about a SAA, and I'd be afraid to accidentally sell off an original for cheap). Only those guns you do not know well would I possibly think about an appraiser, but then again, you could post info/pics to different forums and probably get a pretty good answer for free. After that I'd probably think about Gunbroker, selling only a few at a time to keep the shipping/organization easy. I'd avoid gunshows, as I think you'd spend a lot of time and money. It might be a good idea to get an agreement about who will be compensated what (including yourself) BEFORE starting the endeavor.

 

[Mike1234567]

RE: Gun Shops with good reputations... gun shops can change.