Selling A Gun Collection

All of us eventually reach a point where age and/or circumstances forces us to dispose of a collection. I sold mine recently and would like to share my experience in doing this. I had nearly 50 firearms to sell so it was impractical to go to a gun show with a large number of arms at any one time. I opted to use an auction house and after checking some out settled on Amoskeag. Overall, the service was excellent. The staff were courteous and knowledgeable, all phone calls were returned promptly, etc. They charge a sales commission of 15% and this includes picking up the guns at your home, keeping them in secure storage, and paying you promptly after the collection is sold. So far, so good. Beforehand, I had researched the collection and I knew the collector value of each piece. So I anticipated getting the approximate total value of the collection minus the 15% sales charge. However, I ended up getting only about half the retail value of the collection. This was because most of the sales went to dealers. They paid the wholesale and not the retail price as individual collectors would have done. Using the auction house was very convenient, but you do pay a heavy price. Here is the bottom line. If time is on your side, it would be most profitable to sell your guns on line, one or a few at a time, over a period of a couple of years. This would certainly entail some aggravation, but you would end up with much more cash in your own pocket.

+
You should have put a reserve price on them. How do you know they went to dealers? Perhaps you expected too much?

Sid,

I'm truly sorry to hear your story. I've sold a few guns through a local auctioneer for the last two years (one sale each year). They charge the same as you indicated, 15% and that's that from me. Burnt Chimney Auction is the name of the company. In 2007, I was blown away by what my "stuff" brought. I sold several guns, and a few gold coins. Everything I sold in 2007 brought retail PLUS. Needless to say, I was a happy boy. But, in 2008, I took a chance, sold a few more guns and more gold coins. I suppose due to the economy, things didn't go quite as well, but I would still say I got somewhere close to retail minus 10% when it was all said and done.

I suppose in my case, the great risk of going through an auction house provided both reward and some regret. Your advice to the readership is sound advice indeed.

Resp'y,
Steve

My experience with local auctions is that cheap guns sell very high. Unusual guns often sell cheap if the crowd doesn't know what they are. Certain guns require certain types of buyers to realize their potential. Also you need 2 bidders(or more) for every gun for it to reach it's potential.

Sold about 20 guns over the last 3 years through an auction house in a neighboring state. Most did well but the 20% commission was a bit too painful. Next time I think I'll use one of the online auctions.

I recently steered someone away from a local auctioneer because their estimated value was only a fraction of the collections potential. He wasn't the wiser, in fact pleased that his collections had grown in value.
He thought 'tens of thousands' of dollars was fantastic until I pointed out his collection could possibly wholesale in excess of $1m.
Literally hundreds of early and original Winchesters, Marlins, and Savages in great shape. For example, 1885's and 1895's in nearly every caliber and factory offering etc.
We spent hours and I could only inspect a portion of what I saw. He was almost dumbfounded when he discovered the ones we looked at in his "junk room" were worth easily $20k.
I truly believe the local yokel planned to take him for a ride, although I'm unable to discount ignorance on their part. Highly likely they've never encountered such a vast collection before.
They will probably go to Rock Island Auctions when the time is right. That's after they are reinventoried and graded and at least two more opinions are heard. That was my advice to him.

BTW, I thanked him for a great day. I was like a kid in a candy store!

A friend recently sold a collection through Amoskeag, & his experience was similar to yours. Unlike some other auction houses, they stand behind what they sell. But, I just don't see where they have a large "audience" of collectors. I've never received a catalog, never seen an ad from them, never seen anything on the Internet, & never received a mailing. I subscribe to 2 gun magazines, attend guns shows, & consider myself a typical collector; if I don't know they exist, how many others are in the same category?

I recently sold 2 small collections for the families of impaired friends, & did it the hard way----1 gun at a time. I figure it took me an average of 4 hours per gun, & I netted about 85% of "market value" for the families. It would have been easier if the fellas the guns belonged to had kept detailed records of each gun, as I do.

4 hours per gun and 85% isn't bad at all. Figure a 15% commision from the auction house leaves one with 85% of the gross sale, and not all will sell at market value.
You did your friends a great service. I hope they realize how well you did for them.
What type of venue(s) did you use to sell?

Selling at auction all depends on the crowd and the times. Also, many auctioneers have "covenants" with certain dealers and for a "small remuneration" do get quick on the hammer. I've seen this time and time again. Also, I have been approached and offered items beforehand and after sales where reserve was not made and offered the item item, plus commission of course. I do a bit of work for museums and it is amazing watching the shenanigans at auction houses and sorry...no names. Also, be sure, if selling, the house has an escrow account. I know several people who never did get paid or were paid a pittance of value received with the threat:" I'll just go bankrupt and then you get nothing". You are not a secured creditor as a seller. Several of the "well know auction houses" have pulled this one.

My one and only auction fixing experience went like this....

I didn't solicit, but was offered the arms at a set price by the seller and auctioneer before the auction began. It was agreed that since the lot had been listed and displayed, it must go to the block.
The arrangement was that I keep bidding and never mind the price as it was all for show. It appeared as though I overpaid but in reality the cost was a mere fraction of what the public saw.
Normally I wouldn't have done anything of the sorts but they had belonged to a relative at one time. We drove the 300 miles because we wanted them back in the family.


Sometimes I wonder about a few of those crazy online auction prices too.

These auction stories are scary. I've witnessed several where I thought, "Man, this just doesn't look right.", but if you are an outsider there's no way to know what's going on. My philosphy became, "Know what the item is worth, & pay only what you think is a fair price."

The guns I sold went on Gunbroker, where the fee runs about 10%. Another 5% goes for packing material & underestimates on shipping. (I low ball the shipping charge as some folks don't realize how expensive it has become, & think you are trying to make a profit on the shipping.)

If I were trying to sell high end items (like engraved Colts), I might use Rock Island Auctions. I'd never BUY from them (read their terms), but they have a big customer base that appears rich & not very knowledgeable.

The important thing when selling online is to take numerous high quality photos, & describe every detail of the gun. It also helps to have a fair return policy (I give 30 days, plus refund shipping both ways if item is not as described), as well as good feedback.

Their terms for post-'98 arms are what all Illinois buyers have to go through. In addition to their buyers fees, I would still need to pay sales tax as I'm an Illinois resident.
Given the waiting period and today's fuel prices it's probably cheaper, or maybe break even for me to have it sent to an FFL near me. Then do the paperwork/insta-check/waiting period closer to home.

At least I can't rob a bank with a or do a drive-by bayoneting the same day I purchase. The people of Illinois are so much safer! LOL