How to sell a collection without losing money

Most stamp collections are sold once: by the collector who built them, or — more often — by the family who inherited them. Either way, it is usually done without much experience, and that is where money gets lost. Not usually through dishonesty, but through selling too fast, in the wrong form, to the wrong buyer.

This guide walks through the decisions in order. None of them is difficult, but each one is worth making deliberately.

First, find out what you have

You cannot judge an offer for something you haven’t looked at. Before you contact any buyer, spend an hour or two getting a rough picture:

• What is it? Which countries and periods, mostly used or mint, loose stamps or covers? Are there first day covers, miniature sheets, old letters?
• How is it kept? Neatly mounted in good albums, or loose in tins and envelopes? Is there toning or damp damage?
• Is there paperwork? Invoices, certificates, auction catalogues or the collector’s own notes are worth finding. They can point straight to the valuable parts.

If the collection includes Indian stamps, the catalogue on this site will help you identify them and see what is common and what is not.

Above all, don’t sort, soak, remove or “tidy” anything yet. Stamps taken off envelopes, hinges pulled off in a hurry and albums broken up can all destroy value. Leave it as it is.

Catalogue value is not selling price

The first thing many families do is look up a stamp in a catalogue, see a price, and multiply. This almost always produces a figure far higher than anyone will pay, and leads to disappointment and suspicion of every offer.

Catalogue value is a guide to retail prices for stamps in fine condition. A buyer — whether dealer or collector — pays far less for most of it, because most stamps are common, many collections are in mixed condition, and every buyer has to sort, describe and resell what they buy. The real value of a collection usually sits in a small number of better items; the rest adds comparatively little.

That is normal, not a sign that you are being cheated. The question is not “why is the offer below catalogue?” but “is this a fair offer compared with other buyers?”

Selling whole, in lots, or stamp by stamp

There are three ways to sell, and each suits a different kind of collection and seller:

• As a whole. Fastest and simplest: one buyer, one price. Best for general collections without standout items, and for families who don’t want to spend months on it. You will usually get the lowest total.
• In lots. The collection is split into sensible groups — by country, period or type — and each sold separately, often at auction. More work and more time, usually more money, and the better parts are seen by the buyers who want them most.
• Stamp by stamp. The highest possible return, and by far the most work: identifying, photographing, describing, listing and posting each item. Only worth it for collectors who enjoy the process, or for the few genuinely valuable pieces.

Many sellers combine them: the best few items sold individually or at auction, the rest sold as a whole.

Dealers, auctions and private buyers

Dealers buy outright and pay quickly. A good dealer will look at the whole collection and make a single offer. Ask two or three for offers — a fair offer from one should be broadly similar to another’s — and ask how they arrived at the figure. Be cautious of anyone who offers a price without looking properly, or who wants to take only the best pages.

Auction houses sell to the widest group of buyers and usually achieve the best prices for good material. They charge the seller a commission, may charge for photographs or lotting, and pay out some weeks after the sale. Ask for their terms in writing, and whether they set a reserve below which an item won’t be sold.

Private sales to other collectors can pay well for specialised material, but take time and trust. Philatelic societies are a good way to reach serious collectors in a particular area, and the collectors directory on this site lets you find people by interest and place.

Getting paid safely

The last step is where sellers most often lose money outright. A few rules:

• Don’t send stamps to a buyer you don’t know until you have been paid in full, and the payment has cleared.
• Be wary of any payment method you can’t verify, and of buyers who overpay and ask for a refund of the difference — a common fraud.
• For anything of value, use tracked and insured post, and photograph what you send.
• Get every agreement — price, what is included, who pays postage — in writing, even if only by message.
• If you are handing a collection to an auction house or dealer to sell for you, get a signed receipt listing what they have taken.

Selling a collection well takes a little patience. The family that spends an afternoon understanding what they have, asks more than one buyer, and chooses the right way to sell will almost always end up with considerably more than the family that accepts the first offer.