Today's Estate Auction

[Pop_Rivit]

A friend and I went to an estate auction today. Along with a couple other items (pieces of artwork) I picked up a Porter Cable 6.0 amp planer for $22. It looks like it's only a year or so old and maybe been used once or twice. New ones go for about $90 at various Internet stores, so this one was a pretty good price. There were only about 25 people at the auction, and most seemed more interested in interior furnishings of the house (lots of antiques that went for more than I was willing to pay). Everything in the garage went extremely cheap-a Craftsman self propelled mower for $35, a Ryobi string trimmer for $18, and a nice assortment of woodworking tools for similar prices.



John, the friend who I go auctioning with, picked up an older Craftsman toolbox full of Craftsman metric wrenches, ratchets and metric sockets for $38.

 

[TurboLuver]

Nice score!

 

[JHZR2]

Must be nice to be able to shop in such a sparse area. I keep hearing about Indiana having great pawn shops and sales too. Iowa bottomed out in about 1985 supposedly, but I guess prices have stayed depressed in the secondary market for stuff. Good deal!

 

[daves87rs]

Cool!

 

[volk06]

Originally Posted By: JHZR2
Must be nice to be able to shop in such a sparse area. I keep hearing about Indiana having great pawn shops and sales too. Iowa bottomed out in about 1985 supposedly, but I guess prices have stayed depressed in the secondary market for stuff. Good deal!


Not really. There just wasn't many people at that auction therefore low prices.

 

[Pop_Rivit]

Originally Posted By: JHZR2
Must be nice to be able to shop in such a sparse area. I keep hearing about Indiana having great pawn shops and sales too. Iowa bottomed out in about 1985 supposedly, but I guess prices have stayed depressed in the secondary market for stuff. Good deal!


I'm not sure what pawn shops in Indiana and the economy 28 years ago has to do with today's estate auction prices in Iowa, but since it's clear you're uneducated about how auctions work I'll give you a brief rundown to help educate you a bit.

This auction happened to have some fairly inexpensive tools for a couple reasons. Not only was it in a rural area, but the weather was hot and humid, which tends to keep the less hardy people at home. It was also geared toward home furnishings and similar items, including a lot of very nice antique pieces. Most of those went for pretty good prices, and it was the main attraction of the auction. The auction company hardly mentioned the tools when they advertised the auction, so very few "tool buyers" showed up.

There are times when an auction will draw a very large crowd, and the prices tend to be higher than I like to pay on just about everything. Auctions closer to the city tend to bring out people from the city, and they'll also drive up prices. I'll generally either avoid these auctions or leave early. As someone who makes auction purchases for my own use (rather than someone who does it to resell) I can take my time and look for the real bargains, and I don't have to be concerned with making a future profit on what I purchase.

However, auctions will fool even the most seasoned veteran. I've seen a number of times when a rural, poorly advertised auction will bring scores of people, and an auction that should be very crowded brings only a small crowd.

As far as the economy in Iowa, we're actually doing quite well. Here are the latest unemployment figures comparing the top and bottom states. I've found that better employment numbers actually drive up prices on the secondary auction market since people have more disposable income. But as I said before, I can afford to take my time and actually find bargains, which is part of the fun of auctions.

 

[JHZR2]

Wow, must have hit a nerve. It was an honest comment because secondary markets, be it estate auctions, pawn shops or whatever else are all secondary markets - are you implying the value in a secondary market varies substantially from venue type to venue type? I doubt it - wholesale vs retail, yes, otherwise it is all a matter of location and situation, like you stated. Perhaps some overlooked thing out in the boonies - which it appears to be will have a better shot at deals. Locality for sure helps that, as you stated and proved my theory. I get it that youre going for "wholesale" and can look. Good for you. I wonder how much those tools actually cost when gasoline, vehicle wear and time come into play.

Not sure why youre posting figures and tables, it is well known that Iowa had horrid poverty into the 80's and even population loss until the economy shifted to producing things... Are you denying that? IF there is a more depressed economy with fewer buyers and fewer cash, the prices will stay lower, especially in an event that is purely local. My initial post was very simple in premise. And what your table does not show is median income... which equals cash to buy stuff.

Quote:
The median wage in 1999, however, was still below the 1979 median when corrected for inflation. We also found that Iowa remains among the lower-wage states within the nine-state region we use for comparisons. Even if some rough indication of cost of living differences is accounted for, Iowa places sixth or seventh on most measures of wages and annual earnings within the region (the exception being the wage of workers at the 20th percentile, where Iowa is tied for fourth).
http://www.iowapolicyproject.org/SOWI-2001-Files/ch3w.pdf

May be old, but is relevant to the scenario I was talking about... Sure it was a while ago, but it takes time to shift, and the rural areas may not shift as fast/much/well, which again was my basic premise - fewer folks, less cash, extremely local = higher chance to get a deal. A good deal is a good deal, and good for you to get it. IME, the opportunities are much harder (equates to more expensive) to find in places where there are more people and higher wages.

 

[bullwinkle]

Cost of living is also a HUGE factor-the East Coast is one of the more expensive places to live, the Midwest is one of the cheapest. I am roughly upper middle class here in SW Ohio, my income in the greater NYC area would be much lower.

 

[JHZR2]

Originally Posted By: bullwinkle
Cost of living is also a HUGE factor-the East Coast is one of the more expensive places to live, the Midwest is one of the cheapest. I am roughly upper middle class here in SW Ohio, my income in the greater NYC area would be much lower.


Absolutely. But the reality is that you and I pay the same SSI, medicare, federal tax, etc. State taxes are just a few percent. Gas as a commodity costs roughly the same everywhere and at least where I live, the tax on gas is exceptionally low. Its the other stuff that makes or breaks COL.

But fewer people, less cash (pop wanted to show a chart to get at me, but forgot to show Iowa's $49k median income vs NJs $67k), more people in poverty (at least 2% more in Iowa per USDA, even with lower unemployment and all), and my premise still stands. And back to it, it is nice to be able to go out in an area with fewer people, fewer dollars chasing stuff, and finding good deals. I know it got pop's knickers all in a knot, but it is a nice situation all the same.

 

[jcwit]

Want to see a secondary market where the crowd & prices go absolutly crazy?

Go to an auction where its either advertised or known that the owner/estate had a large firearm collection, knife collection, reloading equipment & components. Also in my area quality woodworking machinery.