Denver Magazine / July 2009 / Garage Sale Millionaire

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Garage Sale Millionaire

To the trained eye, one man’s trash can be a treasure of cash.

So you’ve seen Antiques Roadshow and now want to amass your own treasures. It might seem like all you have to do is go into your parents’ attic and grab some of their old junk. Well, it isn’t quite that easy, but with a little education and some long weekends, you too can be a garage sale millionaire.

Start by understanding that you will not be the only person who thinks he can find a Renoir in the attic or a Stradivarius at a local garage sale. Even though these finds do happen more often than you might think, the odds are, unfortunately, heavily against you. Focus instead on the things you can find that will make you a lot of money over time.

Find Your Passion

I recommend first discovering what collectibles you find the most interesting. Then start learning as much as you can (through books and the Internet) on the subject in order to catch deals at garage or estate sales.

For example, I own an art gallery and am an expert in art, animation cels, presidential autographs, and sports memorabilia. When I go to estate sales, I stick to my areas of expertise in order to find gems in the midst of the trash. And with today’s cell phone Internet access in the palm of your hand, you can Google your topic to easily find a current value or other important facts about the collectible. The more information you have about the treasure you are getting ready to buy, the better. Warning: There are a lot of replicas and fakes out there for just about any collectible, and even an expert can occasionally be fooled.

Million-Dollar Tip: Older items are not always worth money. I have friends who go to estate sales, see a little dust, and get excited about their “great find.” For anything to be considered an antique, the item needs to be at least a hundred years old. This doesn’t mean things made later don’t have value; you just need to do a little more research.

Treasure Hunting

There are a lot of great places to find a deal on a treasure. Garage sales are wonderful, but you will need to get there early when all the good gems are still available. By noon at any good garage sale, all the valuable stuff will have been picked over.

I also recommend looking to eBay as an excellent place to find a deal. According to eBay, 20 percent of everything sold on the Website is resold in the exact same way.

Estate sales are a lot of fun, but once again, you need to get there early. If they have a preview during the week, I recommend you go to it. That way you will get a jump on the items you have your eye on.

Million-Dollar Tip: When you are at one of these sales, if you don’t see something you’re looking for, always make sure to ask. Sellers often haven’t put everything out, or they think nobody would be interested in that particular item.

Protect Yourself

When buying your treasure, try to use a credit card. This will give you added protection if the item is not as described or presented. If the collectible turns out to be a fake or has been restored, usually you can go to your credit card company for assistance in recovering the purchase cost if the owner of the store won’t refund the full amount. If you happen to buy from a garage sale or other store that only accepts cash, make sure you take the time to do your homework before you buy (and see also the note on cash payments below).

Million-Dollar Tip: When needing to locate a value quickly, check with eBay to review the current bidding price for that particular collectible.

The Art of the Deal

One question I am always asked is, “Can I negotiate a better price?” The answer is, always ask. The worst the person can say is no. But there is a trick to asking. Offer a fair price, one that shows the seller that you understand the value of the item. The logic? Asking for a basement price will insult the owner and put him on the defensive. In some instances, the owner may decide he does not want to work with you any longer.

For example, if the item is marked $100, and you offer $60, there is a good possibility the owner will counter with $75. You just saved yourself $25. But don’t accept the offer immediately. There’s a good chance the owner will lower the price if you pay cash for the item up front. When vendors accept credit cards, the credit card company takes three to five percent of the sale as a fee to process the transaction.

Hobby to Profession

Treasure hunting is a great hobby and can become a profession when you get good enough. Make sure, when you’re buying something, you take your time. If you move too quickly, you may think you just found a treasure only to realize it is actually trash. Finally, remember to ask questions before you buy. In my mind, there are no dumb questions; only a sucker who thinks they know it all. Have fun and good hunting!