Pros and Cons of Stamp Auction

Stamp Auction

For those who want to sell their stamps, choosing stamp auction can be a great selling method. There are a lot of auction method available, such as online auction and in-person auction.

Many companies such as hold sales regularly, both smaller and bigger companies. In this article, we will describe the benefits and limitations of auction for stamps for any newbie out there.

The limitations and benefits of stamp auction are described on the list below.

• English auction method: better known as open sale, this method is usually used by a lot of companies to sell scarce and rare stamps that probably will not come up again for sale for years. The minimum opening price begins the bidding. The sale price is the final bid offered. It may ignites emotional allure to win the stamps compared to other methods due to the rarity of the stamps auctioned with this method.

• Auction for stamps really depend on the bidders to push for higher price. Thus, many variance exist in the realized prices. Almost similar to the online auctions, auctions in persons may result in the stamp being sold with lesser or higher value than its actual value. For the longer run it may averages out. However, if you only sell several items, it may hit or miss for you. You can both experience the biggest loss or profit.

Stamp Auction Bidder

• It may takes time before you receive your money. After you sent the stamps to the auction house, the house needs to determine and describe your stamps or collection, which takes more time because you are not the only one who submit your stamps. Without any delays, the process usually takes around a month or more. After you stamps are sold, they will need around 45-90 days to send the payments out, depends on the terms and conditions.

• Both seller and buyer has to pay for the fees. The standard fee for the industry is around 15% on both parties. It will go to the auction houses. For example, if a buyer win by 100 dollars bidding, he or she needs to pay 115 dollars to the auction house. The seller will receive 85 dollars, and the auction house will get 30 dollars from the auction process.

Also Read: Determining Stamp Collecting Values

• The biggest benefit of auctioning your stamp is it is only require little time and effort from you. The auction house will take the stamps or stamps collection and determine the contents. They will decide the most suitable way to sell your stamps, market the stamp sale, send it to the bidder, and send you the check. By auctioning, you will be able to sell your collection without too much efforts.

The list above already explain about some of the advantages and disadvantages of stamp auction. For those who have rare stamps or simply want to sell the stamps with less effort, this method may be a good choice for you. If you cannot wait for your money to come to you, then this may not be the best method.

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