Your Money: Garage sale do's and don'ts

GRAND RAPIDS, Mich. (WOOD) - Josephina Rodriguez sometimes goes to dozens of garage sales a day, but doesn't buy very much. She's candid about why.

"Their prices are kind of high," she told 24 Hour News 8, adding that she ofen "walks away."

With cash so tight, many homeowners are holding garage sales as a quick way to raise money. But as the veterans will tell you, there are definite do's and don'ts.

They take a lot of work. Lisa Yeo spent "definitely over 80 hours" putting her garage sale together. "It's very time consuming."

Sellers should remember to price items low. Garage sale shoppers aren't looking to spend more than a few dollars, so forget those pricey items in your sale, even if you think they're worth it.

There is one type of item no garage sale should omit: children's clothes.

"Children's clothes is huge," said garage sale veteran Lois Rao. "You make big money. Adult clothing, not as well."

For the largest profits, eliminate al overhead. Forget the rented tables. Borrow some. Paid ads are a thing of the past. Shoppers gravitate to bright, easy-to-read street signs and creative ads for free on craigslist.

Be organized. Have price stickers on everything. Save time by setting up one-price tables. Displays are important. Clothes should be clean, updated, hanging on racks that can be bought at store liquidations.

And have extra help at the opening of your garage sale. Cars will line up before you open the door.

At the end of the day, you could pocket a few hundred dollars. "I have probably made $300 so far," Rau said. "The most expensive thing I sold today was $50."

Another seller, Judy Vander Werf, said, "I sold tons. I can't tell you how much because I haven't had time to count my funds. But I sold tons."

Another benefit to selling your stuff is an important intangible. When you see how little you can get for some stuff, you may think twice before buying it in the first place.

You may be better off forgetting about the garage sale and donating your stuff to charity. This only works if you itemize your deductions on your federal tax

The IRS allows to write off up to $5,000 in non-cash contributions without independent appraisal.

Depending on your tax bracket, that could mean $1,400 off your tax bill.

You should keep a detailed list of every item you donate in case of an IRS audit, but tax experts say rarely do non-cash contributions raise a red flag.