Whether we want to admit it or not, we all have a pile of items we don’t use anymore – an old dresser, a digital camera that has been replaced by your cell phone, or maybe a pair of bell-bottom pants that haven’t been in style for four decades. Whatever the items may be, you may not want them but there’s a good chance that someone out there does. Here are a couple of popular ways to clean out your house and turn your stuff into dollar bills.

Goodwill, ReStore, or local thrift store

I think of Goodwill and local thrift stores as great places to take clothes, but they accept almost anything. ReStore primarily accepts household items like dressers, bedframes, and light fixtures. Whichever location you choose, you may be able to claim a tax deduction for your donated items. Make sure to ask for a receipt. You won’t see cash in your pocket, but you will feel good about giving your unwanted items to someone else who may really need them.

Craigslist or local Facebook page

The best thing about Craigslist is that it’s free - no cost to buyer or seller for listing or purchasing items. Yes, there are a lot of scam artists out there, but if you create your listing properly and only communicate with legitimate interested parties, you shouldn’t have any problems. Rules number one and two: only accept cash, and only deal with people in-person. No checks, no money orders, no mail. I always pick a well-lit, easy-to-find location to meet, like a big-box retailer parking lot.

I’ve had the best luck selling items on Craigslist that are universally appealing, like laptops, grills, or power tools. Niche items don’t work well unless you live in a highly populated area where you might find that niche marketplace.

You may also find a local Facebook group for buying/selling items. As with Craigslist, there are no fees or costs to use the page. Results will likely vary based on how many people are in the group and how many people check it regularly. 

eBay

eBay is probably the most well-known marketplace for buying and selling. It’s global, meaning you are reaching the maximum amount of potential buyers. In my experience, it’s a great place to sell small electronics and anything that’s easy to ship. It’s also great for those unusual/niche items that may not sell well in your local area on Craigslist; I’ve sold fountain pens, rare books, and vintage collectibles relatively quickly.

There are a few downsides to eBay. First, eBay takes a 10% cut of whatever you sell, meaning you’re going to end up with less in your pocket (and PayPal, the payment processor, also takes a cut). Second, eBay items typically have to be shipped somewhere, potentially exposing you to additional cost and risk. You can select an option for the buyer to pay shipping costs, but I’ve always come up a few dollars short using eBay’s estimated shipping cost tool. As for risk, there are a lot of eBay scam stories out there, so it’s important to document your item well with a good description and good photographs. It’s also almost always a good idea to pay a few extra bucks for shipping insurance. Finally, eBay offers buyers a 30-day window in which to report a problem with your item. Again, you can generally avoid issues by documenting the sale and ensuring your item description is accurate and honest.

I’ve mentioned scam stories a few times in this blog post – be sure to read my follow-up blog detailing some of the most popular methods scam artists use. 

The above article is for informational and educational purposes only. Neither the information presented nor any opinion expressed constitutes a recommendation or endorsement by Gore Capital Management nor Cantella & Co., Inc. of a specific investment or the purchase or sale of any securities. 

Submitted by Ben Sadtler - 2018 CFA Program Level III candidate