As Good As SOLD

The Garage Sale - how to hold one

by Lloyd Barnes

Lloyd Barnes and his wife Kathleen operate Penny-Farthing Antiques and Collectibles in Victoria, BC. Telephone: 250-658-4746

You have finished your spring cleaning and have found that you have a collection of unwanted articles. A good way to dispose of these items and also to earn a little money is to hold a garage sale. Here are a few tips which may help to make your sale a success.

Planning is important - answer the questions “When”, “What” and “How.”

WHEN
Chose a day convenient to most customers. Weekdays are obviously out as most people are at work. Sunday is Flea Market day, and many of your prospective customers will be at these markets. This leaves Saturday which, as it happens, is the most popular day. Start your sale at 8 or 9 AM and stay open until about 2 PM.

WHAT
The adage “What is one person’s junk is another person’s treasure” certainly applies to garage sales. You can sell just about anything - furniture, pictures, tools, glassware, china, silverware, linen, clothing, appliances, toys, books, magazines and even old paint. A word of caution - beware of selling potentially valuable items at bargain prices. If you have any doubt about the value of an object, don’t sell it at your garage sale. Take it to an auctioneer or antique dealer for appraisal and advice on the best way to dispose of it.

HOW
Advertise your event giving the time and place of your sale and some indication what you are selling. Place ads in local papers - some give cheap three day rates and supply “Garage Sale” kits. You can also put notices on local community bulletin boards for free.

Direction signs are very important as many customers cruise the area looking for sales. These signs should have your address and the time of your sale printed clearly in large letters. Place the signs at key intersections and along the routes leading right to your home.

Prepare your articles for sale. Clean items will sell better and will bring you more money. Price your stock fairly knowing that your customers will expect bargains and will barter. Remember, your aim is to get rid of unwanted articles and at the same time, make some money. Finally, a very important point - mark the price clearly on everything.

Ensure that you have enough tables. Card tables, TV tables, picnic/patio tables are very useful. If you need more table space, improvise using plywood sheets on boxes.

You are going to need some miscellaneous items such as change, wrapping paper and packing bags/boxes. You will require at least $30.00 in coins and low denomination bills. Newspapers will suffice as wrapping paper. Plastic bags are readily available from the recycle boxes at most supermarkets. The liquor store will give you some boxes - those with dividers are particularly useful for packing glasses.

Display your stock attractively on your tables, and put similar items together. Old sheets serve nicely as table cloths. Make sure you are ready for business by your advertised opening time.

Offer free refreshments such as coffee and, in summer, lemonade. This will get customers to stay, chat and most importantly, buy.

Some people known as “early birds” will arrive before your advertised start time, sometimes coming around the day before your sale. They could be your best customers, so if you have your stock ready, sell to them. However, if you do not want to deal with these people, stipulate “no early birds” in your newspaper ad.

You may be asked if you have anything else for sale. Beware of these queries as you could be persuaded to sell valuable items for next to nothing. In any case, for security reasons, never allow anyone to come into your home to view your possessions.

You will find that you are very busy at the start of your sale. If possible, have someone helping you at that time. Business will then drop off, and one person can usually handle the workload. When your sale is over, retrieve all of the signs which you posted.

You will undoubtedly have things left over at the end of your sale. You can still dispose of your unwanted articles in two useful ways. Either donate your goods to a local charity shop or sell them at an auction sale. Auctions of household goods are usually held weekly in most cities.

Your good planning will make your sale successful. As an added bonus, you will get to meet many of your neighbours. Have fun and enjoy spending your earnings.

Add comment December 30th, 2006

Your Realtor: Jekyll or Hyde?

Your Realtor may not be working for you. Surprised? It’s understandable if so, for it is an issue that has often been misunderstood. But the time for clarification has arrived, and ‘Agency Disclosure’ is now a fact of real estate life in Victoria.

Just what is Agency Disclosure and what are its implication for you as a Buyer or Seller of property?

In essence, it is a clarification of the different relationships between Buyers, Sellers and Realtors. It will eliminate the misconception that the Realtor you work with during the purchase of a property is ‘yours’, and looking after your best interest.

It will make clear just which party the Realtor is working for, followed by a written disclosure of that relationship. The Realtor’s role and responsibilities to all parties will now be set out and agreed to in advance of any transaction.

Why is it being done? Are Realtors being legislated into it?

No, it’s not law, but is being implemented as part of the Canadian Real Estate Association’s concern that the public doesn’t fully understand the Realtor’s relationship with Buyers and Sellers, and that it will be in the best interest of all to have a system of acknowledged disclosure in place which spells out the different relationship the Realtor has with all parties to a transaction.

In order that we better understand where things are going, let us briefly look at where they have been. Under the traditional ’sub agency’ system, when a Realtor lists a house for sale he/she becomes the agent of the Seller. Then, through the Multiple Listing System®, all other Realtors become the agent - actually sub agent - of the Seller. And under agency law they owe certain fiduciary duties to that Seller such as loyalty, disclosure and confidentiality. Note that as a Buyer, this puts ‘your Realtor’ on the Seller’s side of the fence. As such, you would not want to tell your real estate agent - or sub agent - anything that you would not tell the Seller - your motivations for buying, for example, or the maximum price you are willing to pay. If you do, the Realtor has a duty to relay that information to the Seller as he/she is legally obliged to represent the Seller’s best interests. Buyers have often misunderstood this agency relationship. They have often assumed they have had representation in a transaction and - understandably - were less than happy when they later discovered they did not.

Agency Disclosure brings things more closely in line with what the public has always supposed to be the case, for as a ‘Buyer’s Agent’ it is now possible for a Realtor to represent the Buyer’s interests exclusively. The ‘Buyer’s Agent’ is able to provide the Buyer with services that under traditional sub agency were not possible - advice and counsel on your bargaining position, pricing and competitive market information, for example - and generally work with the Buyer’s best interests in mind rather than those of the Seller.

Does this create an adversarial arrangement?

Not at all. It simply clarifies which side of the fence the Realtor is on, and to whom his/her fiduciary duties are owed. And either way, the obligation still exists to treat all parties professionally and honestly.

And does it mean the Realtor can no longer represent both Buyer and Seller in the same transaction?

Again, not at all - if both parties give consent. This is called ‘Limited Dual Agency’ and under this relationship the Realtor is ‘limited’ in several respects, such as not divulging the price the Seller is willing to accept or the Buyer is willing to pay, the motivation of either party to buy or sell, or personal information about the other - unless, of course, authorized to do so by the other party. Under Limited Dual Agency the Realtor is essentially a conduit between the two parties. As with Buyer Agency, you will be asked to consent in writing to this new arrangement prior to entering into any transaction.

Will it work?

It has so far. It has been practiced in Alberta for some time, with good reception from the public and little change in practice.

It was also tested in a pilot project in Maple Ridge, BC consisting of some 470 real estate transactions. At its conclusion both public and Realtors were almost unanimous in their preference for this new system.

If you would like the benefit of a short video further explaining Agency Disclosure, just call or write and I’ll be happy to oblige without obligation.

Add comment December 30th, 2006