# Auction House vs. Online Auction Service



## bee_smitty (Apr 12, 2021)

I recently inherited a surplus of model trains. Unfortunately, I do not have any knowledge of model trains, and therefore, I’m looking to sell them at an auction. Is it best, in terms of profit, to sell them at an auction house (like Cabin Fever Auctions), or is it best to sell them using an online auction service (like Trainz or ChooChooAuctions)? Any help would be greatly appreciated.


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## CTValleyRR (Jul 26, 2014)

First of all, you'll only make a profit if they were free. Used model trainstuff is rarely worth that much. Most auction houses do both on-line and in person bids. An auction house will not get you the most profit, though. Mif you want to maximize your return, sell the pieces yourself individually or in small batches, either on-line, or at a train show. This process is labor intensive, but it's the only way to get the best value.i


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## bee_smitty (Apr 12, 2021)

CTValleyRR said:


> First of all, you'll only make a profit if they were free. Used model trainstuff is rarely worth that much. Most auction houses do both on-line and in person bids. An auction house will not get you the most profit, though. Mif you want to maximize your return, sell the pieces yourself individually or in small batches, either on-line, or at a train show. This process is labor intensive, but it's the only way to get the best value.i


Thank you for your response. I’d rather not sell the trains myself, as I’m not that knowledgeable. Thus, I would be willing to take some profit loss in exchange for the convenience of consigning the trains with an auction company and letting them handle the heavy lifting. As such, I’m just curious whether an auction house or an online auction service would net more profit. 

I know you said that most auction houses offer online auctions, but those auctions are usually carried out on the auction houses’ website. By contrast, the online auction services usually utilize eBay in order to auction off the trains. Do you have any idea which approach is better? Also, do you have any personal knowledge about the auction sites I listed in the original post (Cabin fever Auctions, Trainz, Choo Choo Auctions)?

Thanks again!


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## Booly15 (Aug 16, 2017)

bee_smitty said:


> Thank you for your response. I’d rather not sell the trains myself, as I’m not that knowledgeable. Thus, I would be willing to take some profit loss in exchange for the convenience of consigning the trains with an auction company and letting them handle the heavy lifting. As such, I’m just curious whether an auction house or an online auction service would net more profit.
> 
> I know you said that most auction houses offer online auctions, but those auctions are usually carried out on the auction houses’ website. By contrast, the online auction services usually utilize eBay in order to auction off the trains. Do you have any idea which approach is better? Also, do you have any personal knowledge about the auction sites I listed in the original post (Cabin fever Auctions, Trainz, Choo Choo Auctions)?
> 
> Thanks again!


Not sure where you are located, I would reach out to Weiss Auctions on Long Island, very good folks, take excellent care of both buyers and sellers.


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## bee_smitty (Apr 12, 2021)

Booly15 said:


> Not sure where you are located, I would reach out to Weiss Auctions on Long Island, very good folks, take excellent care of both buyers and sellers.


thanks for the information. are you of the opinion that an auction house, like Weiss Auctions, is a better option than online auction services that sell the trains through ebay (like Trainz or Choo Choo Auctions)? thanks again!


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## CTValleyRR (Jul 26, 2014)

bee_smitty said:


> Thank you for your response. I’d rather not sell the trains myself, as I’m not that knowledgeable. Thus, I would be willing to take some profit loss in exchange for the convenience of consigning the trains with an auction company and letting them handle the heavy lifting. As such, I’m just curious whether an auction house or an online auction service would net more profit.
> 
> I know you said that most auction houses offer online auctions, but those auctions are usually carried out on the auction houses’ website. By contrast, the online auction services usually utilize eBay in order to auction off the trains. Do you have any idea which approach is better? Also, do you have any personal knowledge about the auction sites I listed in the original post (Cabin fever Auctions, Trainz, Choo Choo Auctions)?
> 
> Thanks again!


So I was not aware that those places auctioned YOUR trains. My understanding is that they buy your collection lock, stock and barrel, then resell it on their auction site. Which I still think is true. In which case, the advice still stands: you're better off selling the pieces individually or in small lots than in one big chunk. It's always a trade-off: just selling the whole kit and caboodle is the fastest and easiest for you, but you'll get less for it. More effort on your part means more money in your pocket at the end of the day, at the price of some time that you could have spent doing something else. Only you know where that sweet spot is for you.


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## bee_smitty (Apr 12, 2021)

CTValleyRR said:


> So I was not aware that those places auctioned YOUR trains. My understanding is that they buy your collection lock, stock and barrel, then resell it on their auction site. Which I still think is true. In which case, the advice still stands: you're better off selling the pieces individually or in small lots than in one big chunk. It's always a trade-off: just selling the whole kit and caboodle is the fastest and easiest for you, but you'll get less for it. More effort on your part means more money in your pocket at the end of the day, at the price of some time that you could have spent doing something else. Only you know where that sweet spot is for you.


thank you. this is helpful. 

just to clarify, are you saying that the online auction services (like Trainz and Choo Choo Auctions) offer you a flat rate for your collection and then auction the trains themselves and keep the entire profit?

if so, in terms of profit, would I benefit more from consigning the trains to an auction house or selling the trains to the online auction service? it is important to note that I’m looking to sell the entire collection at once. I’m not really interested in selling the trains myself or selling them in small lots (but I would be willing to try to resell the trains that don’t sell at an auction). thanks again!


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## CTValleyRR (Jul 26, 2014)

bee_smitty said:


> thank you. this is helpful.
> 
> just to clarify, are you saying that the online auction services (like Trainz and Choo Choo Auctions) offer you a flat rate for your collection and then auction the trains themselves and keep the entire profit?
> 
> if so, in terms of profit, would I benefit more from consigning the trains to an auction house or selling the trains to the online auction service? it is important to note that I’m looking to sell the entire collection at once. I’m not really interested in selling the trains myself or selling them in small lots (but I would be willing to try to resell the trains that don’t sell at an auction). thanks again!


Again, I'm hardly an expert, but yes, I believe that is their business model, and a quick look at their websites seems to confirm this. I don't think it's fair to say that they "keep the entire profit" though. They pay you for it, so you get something for your merchandise. Then they try to maximize the difference between what they paid for it and what they can sell it for. That's pretty much the definition of capitalism right there. It's not a rip-off, per se, although they will try to get the best deal they can for your collection. Their risk is that they may end up with a lot of junk that they can't do anything with along with the good pieces they get.


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## bee_smitty (Apr 12, 2021)

CTValleyRR said:


> Again, I'm hardly an expert, but yes, I believe that is their business model, and a quick look at their websites seems to confirm this. I don't think it's fair to say that they "keep the entire profit" though. They pay you for it, so you get something for your merchandise. Then they try to maximize the difference between what they paid for it and what they can sell it for. That's pretty much the definition of capitalism right there. It's not a rip-off, per se, although they will try to get the best deal they can for your collection. Their risk is that they may end up with a lot of junk that they can't do anything with along with the good pieces they get.


ok that makes sense. thank you for clarifying. 

so in your opinion, is it best, in terms of profit, to sell a large train collection outright to a company like Trainz, or is it best to sell them on consignment with a reputable auction house? (assuming these are my only two options)


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## bee_smitty (Apr 12, 2021)

I recently inherited a surplus of model trains that I’m looking to unload. Is it best, in terms of profit, to sell a large train collection outright to a company like Trainz, or is it best to sell them on consignment with a reputable auction house? (assuming these are my only two options)

Any help would be greatly appreciated!


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## CTValleyRR (Jul 26, 2014)

If your primary desire is to maximize the amount of money you get for your train collection (notice that I'm deliberately avoiding calling it profit), then, in order from most revenue to least:
1) Sell it yourself in small lots or individual pieces.
2) Turn it over to a person or company who will sell small lots or individual pieces on consignment, taking a commission on the proceeds of each sale (whether an auction or not is irrelevant -- in my experience, auctions don't maximize selling price except in the case of really good, desirable pieces), and you get the residual funds (and, quite possibly, all the stuff that didn't sell).
3) Sell it in one large lot, either yourself or through a third party.

Effort and knowledge on your part also decreases from top to bottom, so option one requires a lot of work and knowledge, but will maximize what you get. Option 3 requires little effort, especially if your main purpose is just to get it out of the house or wherever, but you will receive less for it.

You really haven't given us any indication of what you have, what scale it is, or what condition it's in. If you have a lot of old 1950's / 60's top-quality stuff, you're probably better off just minimizing the effort and taking what you can get for the whole lot. If you have some collectors pieces, you might pick up some decent spending money for it. But you're not going to double your nest egg or send your kid to college on what you get, unless your collection is one in a million.

The Marklin collection (which is on the high, desirable end of the scale) that I referred to in your other thread was 2 dozen large boxes of stuff, divided into 127 lots for sale, and that fetched a little under $7 Grand, before commission.


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## bee_smitty (Apr 12, 2021)

CTValleyRR said:


> If your primary desire is to maximize the amount of money you get for your train collection (notice that I'm deliberately avoiding calling it profit), then, in order from most revenue to least:
> 1) Sell it yourself in small lots or individual pieces.
> 2) Turn it over to a person or company who will sell small lots or individual pieces on consignment, taking a commission on the proceeds of each sale (whether an auction or not is irrelevant -- in my experience, auctions don't maximize selling price except in the case of really good, desirable pieces), and you get the residual funds (and, quite possibly, all the stuff that didn't sell).
> 3) Sell it in one large lot, either yourself or through a third party.
> ...


thank you for this. this is exactly what I needed to know. 

in terms of what the collection consists of, I’m not very knowledgeable about the subject, so I’m unable to give any great details. but I think it mostly consists of O gauge Lionel trains. I’m not sure if that means anything to you. but there are A LOT of trains, all of which are perfectly preserved in original packaging.


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## Murv2 (Nov 5, 2017)

This is the third thread you've started on the same subject, but bottom line is you have to decide whether you want more money or faster money. 
If you want faster money sell outright, to either an online reseller or your local used train shop. In both cases they'll want to see what you've got.
If you are a gambler an auctioneer is an option.
If you want more money do a little homework then sell yourself on ebay individually or small lots.
You haven't said what the trains are, are they brass? do they all come in the original boxes? Are they collectible brand names? Are they home made? Are they painted for a real railroad? Are they in good condition? A few photos would make it easier for us to help you.


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## bee_smitty (Apr 12, 2021)

Murv2 said:


> This is the third thread you've started on the same subject, but bottom line is you have to decide whether you want more money or faster money.
> If you want faster money sell outright, to either an online reseller or your local used train shop. In both cases they'll want to see what you've got.
> If you are a gambler an auctioneer is an option.
> If you want more money do a little homework then sell yourself on ebay individually or small lots.
> You haven't said what the trains are, are they brass? do they all come in the original boxes? Are they collectible brand names? Are they home made? Are they painted for a real railroad? Are they in good condition? A few photos would make it easier for us to help you.


I’m aware that this is the third thread I’ve started. why did it take you so long to answer? I wouldn’t have had to create three. LOL just kidding. thanks for the reply. this is actually really helpful. as you can tell, I’m a bit of a novice when it comes to model trains. I can’t even give you a detailed description of the trains. most of the trains are O gauge Lionel trains, all of which are perfectly preserved in original packaging. I hope that helps


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## Dennis461 (Jan 5, 2018)

Put em in the trash.


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## Old_Hobo (Feb 20, 2014)

And give us your address......


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## gunrunnerjohn (Nov 10, 2010)

I merged the threads. Please do *NOT *start more threads on this topic!


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## bee_smitty (Apr 12, 2021)

gunrunnerjohn said:


> I merged the threads. Please do *NOT *start more threads on this topic!


sorry, john. even though the topics were the same, the questions being asked were different. I just thought starting a new thread for each question would help keep the questions in focus. it won’t happen again.


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## CTValleyRR (Jul 26, 2014)

Post some pictures. A lot of folks here can help you identify it. If you have a lot of pieces, you might get a fair bit for it just in volume, but each piece likely won't sell for that much by itself.


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## Murv2 (Nov 5, 2017)

bee_smitty said:


> I’m aware that this is the third thread I’ve started. why did it take you so long to answer? I wouldn’t have had to create three. LOL just kidding. thanks for the reply. this is actually really helpful. as you can tell, I’m a bit of a novice when it comes to model trains. I can’t even give you a detailed description of the trains. most of the trains are O gauge Lionel trains, all of which are perfectly preserved in original packaging. I hope that helps


Lionel is a highly collectible line of model railroad stuff, especially if it is new in the box. If I were selling it here are the options I'd look at:
1. Go to google maps and do a search for lionel, model train shops and hobby shops. I know of two shops near me in the midwest that primarily resell old Lionel. Take the whole set in and ask them to make you an offer. I'd make sure to go to more than one shop though. If they offer enough money to satisfy you then you are done, quick and dirty.
2. google search for toy train and hobby auctions. Try to find reviews. pick the three with the best reviews in your area, call them up and ask what they charge. Take you stuff to the one that gives you the best impression over the phone and ask them to check it and give you a range (auction houses have skinners who estimate the value of stuff they are auctioning. It's an art rather than a science so they'll provide you with a well-educated guess rather than a hard number). If that satisfies you then turn the trains over and wait for the sale. It'll take longer but not much work on your part.
3. There are businesses that sell stuff over Ebay for you. I haven't looked into it but they do the work and take a percentage. If you go on ebay and look for the same things you are trying to sell (completed auctions only) you'll get a feel for what the items will net, but the company will take a significant percentage. Again, look for online reviews of the companies, as well as their ebay ratings. Check the pictures of the company's auctions, good pictures are critical.
4. Sell the items on ebay yourself. This would be the most profitable but also the most work. Excellent pictures are a must for high-end items as well as excellent packaging and shipping. 
Best of luck to you.


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## Booly15 (Aug 16, 2017)

bee_smitty said:


> thanks for the information. are you of the opinion that an auction house, like Weiss Auctions, is a better option than online auction services that sell the trains through ebay (like Trainz or Choo Choo Auctions)? thanks again!


The beauty of Weiss is that they do online using 2 different bidding services, accept telephone bids and when things are normal in person bidding.


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## bee_smitty (Apr 12, 2021)

Murv2 said:


> Lionel is a highly collectible line of model railroad stuff, especially if it is new in the box. If I were selling it here are the options I'd look at:
> 1. Go to google maps and do a search for lionel, model train shops and hobby shops. I know of two shops near me in the midwest that primarily resell old Lionel. Take the whole set in and ask them to make you an offer. I'd make sure to go to more than one shop though. If they offer enough money to satisfy you then you are done, quick and dirty.
> 2. google search for toy train and hobby auctions. Try to find reviews. pick the three with the best reviews in your area, call them up and ask what they charge. Take you stuff to the one that gives you the best impression over the phone and ask them to check it and give you a range (auction houses have skinners who estimate the value of stuff they are auctioning. It's an art rather than a science so they'll provide you with a well-educated guess rather than a hard number). If that satisfies you then turn the trains over and wait for the sale. It'll take longer but not much work on your part.
> 3. There are businesses that sell stuff over Ebay for you. I haven't looked into it but they do the work and take a percentage. If you go on ebay and look for the same things you are trying to sell (completed auctions only) you'll get a feel for what the items will net, but the company will take a significant percentage. Again, look for online reviews of the companies, as well as their ebay ratings. Check the pictures of the company's auctions, good pictures are critical.
> ...


thanks, Murv! this is good to know. between option #2 and option #3, which would you recommend for higher profit?


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## bee_smitty (Apr 12, 2021)

Murv2 said:


> Lionel is a highly collectible line of model railroad stuff, especially if it is new in the box. If I were selling it here are the options I'd look at:
> 1. Go to google maps and do a search for lionel, model train shops and hobby shops. I know of two shops near me in the midwest that primarily resell old Lionel. Take the whole set in and ask them to make you an offer. I'd make sure to go to more than one shop though. If they offer enough money to satisfy you then you are done, quick and dirty.
> 2. google search for toy train and hobby auctions. Try to find reviews. pick the three with the best reviews in your area, call them up and ask what they charge. Take you stuff to the one that gives you the best impression over the phone and ask them to check it and give you a range (auction houses have skinners who estimate the value of stuff they are auctioning. It's an art rather than a science so they'll provide you with a well-educated guess rather than a hard number). If that satisfies you then turn the trains over and wait for the sale. It'll take longer but not much work on your part.
> 3. There are businesses that sell stuff over Ebay for you. I haven't looked into it but they do the work and take a percentage. If you go on ebay and look for the same things you are trying to sell (completed auctions only) you'll get a feel for what the items will net, but the company will take a significant percentage. Again, look for online reviews of the companies, as well as their ebay ratings. Check the pictures of the company's auctions, good pictures are critical.
> ...


thanks, Murv! this is good to know. between option #2 and option #3, which would you recommend for higher profit?


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## bee_smitty (Apr 12, 2021)

Booly15 said:


> The beauty of Weiss is that they do online using 2 different bidding services, accept telephone bids and when things are normal in person bidding.


that is interesting. is that uncommon among the majority of auction houses?


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## Murv2 (Nov 5, 2017)

bee_smitty said:


> thanks, Murv! this is good to know. between option #2 and option #3, which would you recommend for higher profit?


I haven't done either, no idea. I've never been drawn to auctions so don't know much about them.


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## AFGP9 (Apr 8, 2015)

Bee_smitty I suggest you take some time to educate yourself on what you have to sell. If you have numbered boxes, the easiest way would be to get on eBay, type in the word "Lionel" and the number on the box. If the numbered piece comes up then check the left side of the eBay page and scroll down to the "completed auctions" to see what you might get for your trains. Don't go by the asking price. If no boxes then just use a generic term like "Lionel Steam Engines" or "Lionel Diesel Engines" or "Lionel box cars". Those terms should get you pictures so you can identify what you MIGHT get at auction. Yes it might take a little time but at least you will know more then than you do now.
As to taking your trains to an physical auction house, that can be a gamble. I once worked with an auction house when they had trains to sell. 4 of them were 2 day events, trains only. There were several 1 day train auctions. Other auctions were mixture type auctions so the train buyers weren't as plentiful as the trains only auctions and the the train stuff sold cheaper than it should have. There will be a selling fee of 25-30%. The auction house did not actually buy the trains. The seller left the stuff on consignment, I sorted it, then the house sold the trains for whatever the highest bid was. Sometimes higher than I thought, sometimes lower. Like I said, it is a gamble. I have been to several auctions over the years and none of the auction houses around here buy anything. Strictly consignment.
Having never sold any trains on any kind of on-line auction I have no knowledge of how those go.
Please understand I am not suggesting you sell on eBay unless you are familiar with their selling and shipping rules and can take good, sharp pictures for posting. I am just suggesting a way to identify your trains and educate yourself. Selling on eBay even in lots can be labor intensive and you had better know what you are selling even though most buyers should know what they are bidding on just by looking. The biggest negative to selling on eBay is when it comes to any engines. If you don't know if they run or how well, that will hurt the selling price.
At the auction house, that is never a question sense everything is sold as is.
One more suggestion is for you to take some pictures and post them on this forum in the member to member selling section. That is probably your easiest and quickest way. 
Good luck.

Kenny


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## Booly15 (Aug 16, 2017)

bee_smitty said:


> that is interesting. is that uncommon among the majority of auction houses?


no some auction houses have their own systems, others use specific auction sites, I have attended those and also been in person (pre covid).


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## bee_smitty (Apr 12, 2021)

AFGP9 said:


> Bee_smitty I suggest you take some time to educate yourself on what you have to sell. If you have numbered boxes, the easiest way would be to get on eBay, type in the word "Lionel" and the number on the box. If the numbered piece comes up then check the left side of the eBay page and scroll down to the "completed auctions" to see what you might get for your trains. Don't go by the asking price. If no boxes then just use a generic term like "Lionel Steam Engines" or "Lionel Diesel Engines" or "Lionel box cars". Those terms should get you pictures so you can identify what you MIGHT get at auction. Yes it might take a little time but at least you will know more then than you do now.
> As to taking your trains to an physical auction house, that can be a gamble. I once worked with an auction house when they had trains to sell. 4 of them were 2 day events, trains only. There were several 1 day train auctions. Other auctions were mixture type auctions so the train buyers weren't as plentiful as the trains only auctions and the the train stuff sold cheaper than it should have. There will be a selling fee of 25-30%. The auction house did not actually buy the trains. The seller left the stuff on consignment, I sorted it, then the house sold the trains for whatever the highest bid was. Sometimes higher than I thought, sometimes lower. Like I said, it is a gamble. I have been to several auctions over the years and none of the auction houses around here buy anything. Strictly consignment.
> Having never sold any trains on any kind of on-line auction I have no knowledge of how those go.
> Please understand I am not suggesting you sell on eBay unless you are familiar with their selling and shipping rules and can take good, sharp pictures for posting. I am just suggesting a way to identify your trains and educate yourself. Selling on eBay even in lots can be labor intensive and you had better know what you are selling even though most buyers should know what they are bidding on just by looking. The biggest negative to selling on eBay is when it comes to any engines. If you don't know if they run or how well, that will hurt the selling price.
> ...


Kenny, thank you for the detailed response. It’s nice to hear from someone who has experience working at an auction house, as I think I’m going to sell the trains on consignment. I considered selling them via ebay, but given the amount of time it would take to educate myself, combined with the labor involved in posting each individual train (there are A LOT of trains), the most sensible option, for my situation, would be to sell the trains at auction. Thus, I’m currently making efforts consistent with that notion. thanks again!


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## riogrande (Apr 28, 2012)

I've been reading that the popularity of Lionel is not as much as it once was due to the primary customer base aging out. It was highly collectable but just temper expectations. As others have said, is you sell bit by bit, you'll make more money. If you sell as a lot, a you will get less money.

One thing you can do is check eBay to see what some trains of the same description and type and condition are selling for. Often eBay prices are inflated so keep that in mind.


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## bee_smitty (Apr 12, 2021)

riogrande said:


> I've been reading that the popularity of Lionel is not as much as it once was due to the primary customer base aging out. It was highly collectable but just temper expectations. As others have said, is you sell bit by bit, you'll make more money. If you sell as a lot, a you will get less money.
> 
> One thing you can do is check eBay to see what some trains of the same description and type and condition are selling for. Often eBay prices are inflated so keep that in mind.


that’s good to know. I’ll do a little research and try to get a more realistic valuation. thanks for weighing in!


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## wvgca (Jan 21, 2013)

if it matters, i deal with a mortar and wood auction house, but the small things i list, are listed online, with a one week bid period ..
bidders are encouraged to physically inspect the item before bidding


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## bee_smitty (Apr 12, 2021)

wvgca said:


> if it matters, i deal with a mortar and wood auction house, but the small things i list, are listed online, with a one week bid period ..
> bidders are encouraged to physically inspect the item before bidding


thanks for the reply. are most auction houses converting to an online format due to covid?


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## wvgca (Jan 21, 2013)

bee_smitty said:


> thanks for the reply. are most auction houses converting to an online format due to covid?


i think they are to some extent, there are over 2900 items on this current online sale, i imagine it may be a combination of covid and the face that they can run a lot more items through


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