Selling an Inherited Stamp Collection


As stamp dealers we often get emails that ask about that very question. The emails are often like the one below:


"About a year ago I inherited an old stamp collection from my father. We spent a long time trying to figure out what the stamps were and what they're worth, but we've given up because there are just too many stamps. After looking at your website I decided to contact you. We'd like to sell this old stamp collection, get some money for ourselves and at the same time find a home for the stamps with someone who will enjoy them."


Here are some of our thoughts on this situation:

Trying to value your stamps by using a stamp catalog is a logical first step in selling an inherited stamp collection, but it can often be very time-consuming and frustrating. It can also lead to disappointment - you need to be aware that peopple selling a stamp collection almost never get anywhere near the catalog value of their stamps. Here's why:

The value listed for a specific stamp in a stamp catalog represents what a dealer would charge you if you went to them to purchase that stamp. It is their selling price, not the price they pay when buying. And their selling price doesn't take into account any volume discounts, discounts because of past business dealings, or any other factor that might cause a stamp dealer to sell their stamps for less. For example, most of the 20 cent catalog values that you see in Scott's Standard Postage Stamp Catalog, for example, exist to compensate the dealer for his or her time and effort to secure that one stamp. In reality, many of these minimum value stamps are worth much less. But a dealer has to find them, identify them and stock them, even though they're not worth much. For stamps that have a higher catalog value, a dealer's selling price will be closer to the catalog value, simply because their catalog value is due more to their rarity than for recouping the dealer's time and overhead.

Extremely rare stamps that are in great condition can and do yield a premium value over the catalog value: they sell for more than the value listed in the catalog. But these types of stamps are very rare, and although it's possible, they aren't likely to be in Aunt Fannie's old stamp collection.

A reputable stamp dealer won't take advantage of your lack of knowledge of stamps and offer a ridiculously low price for your stamp collection. Most stamp dealers, especially those that have been in business for a long time, will offer you a fair price. But remember, the name of the game when you're a stamp dealer is to buy low and sell high when you can.

Another factor that works against a non-collector who tries to sell a stamp collection is that they tend to over-estimate the age and condition of the stamps they are trying to sell. Many stamps have to be in absolutely perfect condition to be anywhere close to their catalog value. That would include things like how well-centered the stamp is, if there are any damaged perforations, if the cancellation mark on a used stamp is light, etc. A stamp can quickly lose half of its value, if there is the slightest disturbance of the gum on the back of the stamp. Condition, condition, condition: it's everything in stamp collecting. We can't tell you how many times we've seen stamps where the person selling them has said they're in "good condition," but when we actually see them, they have tears, missing corners, holes, missing perforations, etc.

There are, however, a few thngs you can do to maximize the value of your inherited stamp collection.

1. Consider using the collection as a starting point for your own stamp collection. Stamp collecting is a hobby that can fit just about anyone's budget, and you can usually collect stamps well into your senior years because it is not physically demanding.


2. If you are determined to sell the collection you inherited, you can accept the price that was offered by a dealer. If the collection was inherited, you don't have anything invested in it, so any amount you get will be better than nothing. But try to get quotes from at least two stamp dealers before you sell.


3. If you think the collection has one or more rare stamps, meaning a stamp with a catalog value of more than $250 or so, you could send them off to be expertized. Expertizing is the process by which a philatelic expert will evaluate the stamp by determining if it is genuine and give a definitive opinion on exactly which stamp it is (some stamps have many, many different varieties, in which case it can be very difficult to determine which variety a particular stamp is. Some of those varieties may be valuable, but others may be very inexpensive, even though the stamps may look the same to a non-expert.) Some services will also grade the stamp by evaluating key aspects of the stamp: is it centered on the paper, is the paper in good condition, are the colors bold, etc. But most expertizers will not give an estimate of the stamp's value, they just look at its condition and whether it's a forgery or not. Expertizing services are not free, so you don't want to have it done for every stamp you own. Typically you'd want to expertize only those stamps that may be of significant value.


4. Sell the collection on a stamp auction site. You can sell the collection yourself or you can consign it to someone to sell it for you. If you sell it yourself, you'll make more money because you won't pay a consignment fee, but you'll have to spend some significant amount of time taking pictures of the collection and writing a careful, thorough and accurate description.


5. Consider donating the stamp collection to a charity. Many stamp magazines include ads from recognized charities that request donations of stamps. And local charities such as veterans' hospitals, schools and senior citizen centers might be interested. Be sure to check with a tax consultant regarding the tax implications of donating a stamp collection. Some donations are tax deductible, some are not, and some may trigger additional taxes; it all depends on your individual tax situation.

Oh, and one last thing. We get emails all the time from people who want to sell a "huge" or "very large" stamp collection they just inherited. When we ask how large it is, the person says "there must be at least a couple of hundred stamps in there, but they're too many to count." Well, no offense intended, but that number isn't "huge" or "very large" - in fact it's a very tiny stamp collection and most stamp dealers wouldn't even bother to look at it unless they knew that it contained rare stamps.