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darvish

Question for SOTs

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I am new to this. I have been tasked with selling some machine guns owned by a person who recently died. They are all transferable. What is the fair and customary percentage is charged for this service?

Before anyone asks. I'd rather not say what they are right now until I get this sorted out.

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Minimum 10% plus expenses (listing cost, shipping cost, transfer tax, ect). It also has a lot to do with your business platform. Kitchen table FFL or brick n mortar establishment. Many times the owner/beneficiary wants out now and you buy up the collection for a fair number. You absorb the expenses and sell at your leisure without any pressure from them. I prefer the latter. YMMV.

Jim

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I like that option.  It’s a kitchen table FFL.  
I estimate the 5 Guns have a retail value of between 104K and 125K.  I guess I could just buy the lot minus say 15%.  
A couple of mp5 sear Guns, Colt M16A1 and NIB M11s.  
 

yeah. I changed my mind about listing them.  Lol 

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19 minutes ago, darvish said:

I like that option.  It’s a kitchen table FFL.  
I estimate the 5 Guns have a retail value of between 104K and 125K.  I guess I could just buy the lot minus say 15%.  
A couple of mp5 sear Guns, Colt M16A1 and NIB M11s.  
 

yeah. I changed my mind about listing them.  Lol 

If I'm buying the lot from the estate I'd expect to pay a lot less than 85% of retail.

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1 hour ago, b_san said:

If I'm buying the lot from the estate I'd expect to pay a lot less than 85% of retail.

Nah.  I don’t mind the son getting maximum money for them.  I’ll take my cut little by little 

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8 hours ago, darvish said:

Nah.  I don’t mind the son getting maximum money for them.  I’ll take my cut little by little 

That's noble and all but what I'm saying is 15% is a fairly standard commission fee for consignment sales not for buying outright. When you're putting out the cash up front, especially to buy the whole lot of guns, you need to factor in a lot more uncertainty of value along with the return on your time and money invested.  Feel free to ask Frank, Ruben or Jonathan what percentage of market value they pay to buy out estates or even individual guns for that matter.

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On 8/14/2020 at 0:20 AM, b_san said:

That's noble and all but what I'm saying is 15% is a fairly standard commission fee for consignment sales not for buying outright. When you're putting out the cash up front, especially to buy the whole lot of guns, you need to factor in a lot more uncertainty of value along with the return on your time and money invested.  Feel free to ask Frank, Ruben or Jonathan what percentage of market value they pay to buy out estates or even individual guns for that matter.

I agree. You have 100K sitting out there for 3 month to a year depending on how NFA is running. In addition you will be paying all the NFA Taxes on thos guns. That is a lot money out there just losing money. You could spend that on a lot of title one guns and blow them all out and almost double you money in 1/2 of that time.

Edited by JOELCRAMER

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