Sell Your Old Stuff In Consignment Stores

You’ve moved from an apartment to your first home, or you’re just ready to completely redecorate a room. What to do with the old stuff? You could list it on Craigslist, but then you’d have to meet up with someone who would probably want to haggle on the $10 price.  Or you could have a garage sale where the early birds knock on your door at 5:30am to see if you’re selling a vacuum.  Or you can let the problem be someone else’s, and you just take home the cash.  Consignment stores handle almost everything for you.

There are a few types of consignment stores. The first is the classic store where you leave your items, and they are responsible for selling.  The second type is more like a warehouse. They take your items and list them on eBay and manage the whole process for you including shipping.  Both take a percentage of the final sale price or a flat fee.

Another major positive is that the furniture is out of your house immediately allowing you to repaint, wallpaper, re-carpet, or even change over to wood flooring before buying new furniture. (Or if you’re in a consignment store and see something even better, you can bring it home right away)

eBay Drop Off Stores

Companies like iSold It provide customers with an easy, hassle-free way to sell items online. To find one near you, use an online directory like eBay Drop Off Stores or the eBay Trading Assistant.

Organizational expert Peter Walsh, from TLC’s “Clean Sweep,” confirms the trend. “eBay drop-off stores like iSold It are really the hot new trend in home organization,” he notes. “For occasions such as that yearly cleaning, they provide an easy way for you to get that clutter out of your house and earn some extra cash.”

According to a recent PEW Internet and American Life Project survey, only 22% of online American adults have used the Internet to sell items. eBay drop-off stores professionally photograph the item, write descriptive copy, list it online, collect payment and then pack and ship the item. Once the transaction is complete, the seller receives a check in the mail. For many drop-off stores there are no up-front charges; instead, commission is charged once the item sells.

The commissions can run from 25-40%, so do some research and decide what you want to receive for the item.

Classic Consignment Stores

Often, consignment stores are broken up into types of stores such as furniture and housewares, clothing, and baby items. The good news is that items often sell very quickly in consignment stores so you get paid quickly.
From the Fun Times Guide:

I would, however, recommend consignment shops for buying and selling furniture and housewares! No joke.

I’ve probably sold household items through consignment shops about a half-dozen times in Texas, Florida and here in Nashville (actually Franklin).

In my experience, you can find huge discounts on name-brand, good-quality furniture, decorations, and household accessories. (Think, big mirrors, coffee tables, framed prints, decorative throw pillows, knick knacks, and of course furniture — sofas, chairs, bedroom furniture, bookshelves, etc.).

In fact, items sell so quickly at the furniture-type consignment shops I’ve been to that you have to grab something the first time you see it (if you’re buying), and you get a hefty paycheck right away (if you’re selling).
Overall, I’ve had excellent experiences, both shopping and selling. And I’ve gotten great deals both ways.

TIP: You can find some really great deals on furniture, housewares, and baby items at the consignment shops located in trendier, more upscale neighborhoods. If there’s one several miles away, it’s usually worth the drive!

So, what do you need to know

Read the contracts carefully and know what you’re getting yourself into.  Some consignment stores require you to forfeit your rights to the piece and they can dispose of it in any way they like after two months. Different stores have different fees and commissions. Some places will pick up the furniture for you, and others won’t.

The bottom line is how much effort do you want to put into selling your old furniture. And, chances are good that you will make a larger profit selling through consignment than you would through a garage sale.  Plus, you don’t have to have anyone over to your home like you would through craigslist.

Would you use the money for more furniture or for a vacation?

This Week’s Market Commentary

This week brings us the release of only three pieces of monthly economic data that is relevant to mortgage rates in addition to two Treasury auctions. One of the economic reports is considered highly important to the markets, but the others are not likely to be market movers. We still could see a fair amount of movement in mortgage rates though, especially if stocks make a sizable move upward or downward.

Nothing of concern is due today or Tuesday morning, leaving bond trading to be driven by the stock markets the first part of the week. If the major stock indexes move higher, we will probably see funds move away from bonds and into stocks. This would lead to higher mortgage rates as bond prices and yields move in opposite directions. Mortgage rates tend to follow bond yields, so we prefer to see bond prices go up, pushing rates lower.

The week’s first release is one of the more important ones we get each month. The Commerce Department will post January’s Retail Sales data early Wednesday morning. This report is very important to the financial markets because it measures consumer spending. Since consumer spending makes up over two-thirds of the U.S. economy, any related data is watched quite closely. If Wednesday’s report reveals weaker than expected retail-level sales, the bond market should thrive and mortgage rates will fall since it would be a sign that the economy is not as strong as many had thought. However, a stronger reading than the 0.1% increase that is expected could lead to higher mortgage rates Wednesday.

January’s Industrial Production data will be released mid-morning Friday. It gives us a measurement of manufacturing sector strength by tracking output at U.S. factories, mines and utilities and can have a moderate impact on the financial markets. Analysts are expecting to see a 0.2% increase in production from December to January. A decline in output would be good news and should push bond prices higher, lowering mortgage rates Friday.

February’s preliminary reading to the University of Michigan’s Index of Consumer Sentiment will be released late Friday morning. This index measures consumer willingness to spend and also usually has a moderate impact on the financial markets. If it shows an increase in consumer confidence, the stock markets may move higher and bond prices could fall. It is currently expected to come in at 73.5, down slightly from January’s final reading of 73.8. That would indicate consumers were a little less optimistic about their own financial situations than last month and are less likely to make large a purchase in the near future. Since consumer spending makes up over two-thirds of the U.S. economy, this would be considered slightly favorable news for bonds and mortgage pricing.

The two important Treasury auctions come Wednesday and Thursday when 10-year Notes and 30-year Bonds are sold. The 10-year sale is the more important of the two as it will give us an indication for demand of mortgage-related securities. If the sales are met with a strong demand from investors, we should see the bond market move higher during afternoon trading the days of the auctions. But a lackluster interest from buyers, particularly international investors, would indicate a waning appetite for longer-term U.S. securities and lead to broader bond selling. The selling in bonds would likely result in upward afternoon revisions to mortgage rates.

Overall, I believe we will see the most movement in rates the middle part of the week. There is a small improvement waiting for Monday’s open if your lender did not improve pricing Friday afternoon when the bond market strengthened during late trading. The Dow closed just under 14,000 Friday, so we will also be watching it for an indication of bond movement. I believe that failure to break above that level could mean a downward leg in stocks that would boost bond prices and improve mortgage rates. I see Wednesday as the likely candidate for the most important day and Tuesday being the least active, assuming stocks remain calm most of the week. However, despite it being a relatively light week in terms of economic releases, I still recommend maintaining contact with your mortgage professional of still floating an interest rate.