Note: If, like me, you live in an apartment building and therefore are not in possession of either a garage or a yard, don't despair. You can give a tag sale in your apartment, provided there are no ordinances against doing so.

1) READ YOUR HOUSEHOLD INSURANCE POLICY.  Make sure you are protected if someone has an accident on your property. Neighbors have been known to sue neighbors. If you're a renter, check your renter's policy and also ask your landlord about his coverage.

NOTE: Many renters mistakenly think their landlord's insurance will cover their furniture and other possessions. Not so. You need to have your own coverage, known as HO-4. Most policies include liability coverage that covers any legal defense costs. The amount of liability protection varies but is usually 3 to 10 times the amount of your personal property coverage.

For more information on homeowner and renters insurance, go to: http://www.insurance.com/. You can also get free quotes from several companies on this site.

2) CHECK WITH YOUR TOWN HALL. A growing number of localities require "assembly" or "business" permits, which include garage sales. The fees are minimal -- $10 to $35 -- but the fine for not having a proper permit could be 5 to 10 times the amount of the fee.

Now on to the fun part...

3) PLAN AHEAD. Pick a date as far in advance as possible so you can put notices in local newspapers, on bulletin boards at churches, synagogues, libraries, grocery stores and community centers.

Three websites where you can post information about your sale are:

• www.yardsalesearch.com
• www.garagesale.nearu.com
• www.pennysaverusa.com

Phrases that capture attention: "Everything Must Go."  "More Than 500 Items." "Exceptional Antiques." "A Three Generation Sale." Three-generation sales are very successful because shoppers know there will be a wide variety of items to look at -- many of them old, interesting and valuable.

Mention if you're selling large items that require a truck or van to remove them. Your notice should also indicate if the sale will go on come rain or shine or if there is a rain date.

Two-day weekend sales draw larger crowds than those held just one day or during the week.  Exception: If you live in a city where people take off for the country on Fridays, run your two-day sale on a Sunday/Monday or a Thursday/Friday.

4) JOIN WITH NEIGHBORS. You'll get much more action if several of you hold a mini-block sale. Joint deals not only attract more buyers and make for more impressive ads, but if you put everything in a central location, you and your neighbors can spell one another for lunch.

5) HAVE PLENTY OF CHANGE. Make a trip to your bank or ATM machine the day before. You don't want to lose a sale because you can't make change for a $20 or $50 bill. Recommended mix: 100 singles, $50 in $5 bills, $50 in $10 bills and several roles of quarters.

Then, only accept cash. Do not take personal checks.

If you're accepting bids on certain items, keep a notebook for recording the potential customer's name, phone number, amount of their bid and the best time to reach them. Have pre-printed receipt forms for those who leave a deposit.

6) SERVE LEMONADE & COOKIES. Free refreshments keep shoppers shopping a lot longer, especially those who are hungry. Kids, even very young ones, can be put in charge of the stand because it doesn't involve making change.

7) SET UP A PLAY AREA. Hire a teenager or grandparent to keep little children busy -- reading books, playing games, drawing, singing. This guarantees that their parents will poke through your wares at leisure, uninterrupted by little voices saying, "Mommy, when can we go home?"

8) ORGANIZE YOUR TABLES. Put like items together. It makes for easier shopping. Categories: clothing, toys, games, sporting equipment, small appliances, office equipment, books, records, CDs, collectibles, household items, jewelry, large equipment & appliances, furniture and antiques.

Don't place the pricey stuff at the end of your driveway or at the entrance to the sale. Shoppers will turn away if it appears that your items are too expensive or overpriced. And, of course, really expensive items should be next to where you sit.

If you're selling jewelry, sun glasses, hair bows and clips, scarves, hats or neckties, have a mirror so people can see how lovely the item looks on them.

If you have a number of pieces of clothing, hang them on a portable coat rack or clothes line and set up a trying-on area.

TIP: Items are more likely to sell if they're up, off the floor or lawn and easy to see and examine. It helps, too, if they are dusted, washed and clean.

9) BE CAUTIOUS. Wear a fanny pack. In other words, don't place money in a box on a table. And, lock your house. Not everyone in America (even in your own hometown) is honest.

I urge you to keep your pets in the house while the sale is going on. Just as not everyone is honest, not everyone loves parakeets, poodles and pythons. You don't want shoppers to leave because they are allergic to cats or afraid of dogs.

When it's all over...

10) DONATE WHAT'S LEFT TO CHARITY. It's tempting but don't stuff rejects back into your garage or closet. Instead, take them to your favorite charity. (Some charities will actually pick up contributions.)

Ask the organization for a written receipt, on their letterhead, stating the dollar value of your donation. (If you're asked to supply this figure; don't exaggerate. The IRS adores coming after exaggerators.) If you itemize on your tax return, you can deduct the amount of your contribution.

TIP: For more information, get a copy of IRS Form 526, "Charitable Contributions" at: www.irs.gov or call: 800-829-3676.

A final tip...

Based on personal experience, don't put your phone number in ads or on flyers. You'll never get any sleep!

STAY TUNED: Next week we will discuss how to be a savvy garage sale shopper.