Estate Sale Services: What You Should Know

Esate sales are the process of selling all, or almost all, of the contents of one’s home. People often decide to have an estate sale for their own home when moving to senior living, or for a loved one’s assets after the loved one has passed.

Estate sales can lead to significant profits, especially for a large estate, but do take a significant amount of time and effort to set up. Estate sale services, companies that facilitate the process for estate owners, can make having an estate sale easier and quicker. But, it is not the right choice for all seniors.

If you’re in the process of deciding whether to do a DIY estate sale or hire an estate sale company, this guide can help. We also provide guidance on selecting an estate sale company to ensure you work with a reliable and trustworthy service.

Estate sale services are companies that oversee all aspects of an estate sale, including inventory, appraisal, cleaning, and the sale itself. These “turnkey” services are often attractive to seniors moving to a senior living community who don’t want to manage the sale themselves.

Using an estate sale service simplifies moving but comes at a cost. Instead of a flat or hourly fee, these services appraise your entire estate and take a fee from the estimated value, typically 25-40%. As the estate owner, you receive the remaining sum, which is a portion of your estate’s total value.

Another option is to work with an estate auction company. Rather than selling one’s estate over the course of several days, estate auction houses will schedule a set day and time for the auction. These companies also take a smaller commission, usually 10-20%.

Before hiring a company for your estate sale, weigh the pros and cons, particularly if considering a buyout. The traditional route of property selling might be more beneficial depending on your circumstances. Remember, the advantages and disadvantages discussed below apply mainly to estate buyouts, but can also apply to conventional estate sales.

• Sellers May Receive Cash Up-Front: For seniors who need to use the revenue from their estate sale to finance a move to a senior living community, having cash in hand can enable them to move on their own timeline rather than waiting through the process of selling their property.
• Moving is Less Stressful: Working with a full-service estate sale company means that seniors can leave the heavy lifting to professionals. In some cases, homeowners don’t even need to clean their homes before moving out – they can simply pack what they want to take and leave the rest for the estate liquidator to handle.
• Items Priced Strategically: For those who aren’t familiar with estate sales, knowing how to price certain items can be tricky. Experienced estate salespeople and appraisers will understand the resale market and know how to price your belongings for maximum profit in the set time frame.

Though working with an estate sale company has its benefits, it isn’t the right choice for everyone. There are certainly some notable downsides to working with an estate sale company that need to be considered.

• Sellers May Receive Less Money from the Sale: Everyone who uses an estate sale company or auction service will lose some profit by paying the company a commission. This is especially true if you opt to receive payment upfront.
• Not All Estate Sale Services are Legitimate: Because there is no national regulatory agency or certification standards for estate sale companies, consumers need to do thorough research to ensure that they choose a trustworthy and reputable service.

Sometimes, seniors need accessible funds as soon as possible. In certain circumstances, waiting to sell one’s home through the traditional route simply is not an option. While estate liquidation is one way to access money quickly, it isn’t the only option seniors have for tapping funds from their estate.

• DIY Estate Sale: Instead of working with an estate sale service, you can opt to organize the estate sale on your own. DIY estate sales mean you get to keep all of the profit from the sale, but you will have to put in a significant amount of time and effort.
• Reverse Mortgages: These are loans homeowners can take out against their home’s value, essentially converting some of their home equity into cash without having to sell the home. Reverse mortgages are not a permanent solution, as the loan does have to be repaid with interest once the home sells, and there may be a time limit on repayment.
• Bridge Loans: These short-term loans are typically used by individuals who find themselves in need of money while in the process of selling their current home and purchasing a new one or moving to senior living. Bridge loans tend to have higher interest rates than other types of loans, so they may not be the best choice.
• Online Selling: You can opt to sell your home traditionally and do online selling for your belongings. An online auction can help maximize profits by not limiting the sale to a certain geographic area. However, setting it up and inventorying and photographing items is a lot of work.

If you are interested in working with an estate sale service, you’ll find that you have plenty of options. According to the National Estate Sales Association, the number of estate sale companies has increased by 650% since 2006.

With so many companies out there, it may take some effort to find one with which you feel comfortable. Below, we’ve outlined some steps you can take to find a trustworthy estate sale service.

If you already have a realtor you’re working with to sell your home, they likely have estate sale company recommendations. Or, if you live in a larger city, the local realtor association is a great place to call to ask for a referral to an estate sale company.

If you’re conducting an estate sale to finance a move to a senior living community, ask community staff if they have any recommendations. Some services even specialize in “senior relocation” or “senior move management.” If no one in your network has any recommendations, an online search will of course suffice.

While there is no official certification program for estate sale services, there are some membership organizations like the American Society of Estate Liquidators and the National Estate Sales Association. Membership in one of these organizations does not guarantee a good experience, but it can indicate that the service sees estate sales as a legitimate profession rather than a side business. An online search can also reveal any major complaints or scams associated with these companies.

At this step, you should have your list narrowed down to 1-3 of your top choices. Before making a final decision, it’s important to reach out to all of the companies and ask some important questions, including:

• How many years have you been in business?
• How many estate sales have you conducted?
• How do you advertise your sales to ensure high attendance?
• Are you licensed and bonded? How much insurance do you hold?
• How do you report the inventory of what was sold after the sale?
• How long does it take after the sale to receive payment?
• How often do you provide updates during the sale period?
• Can I have 2 or 3 past client references?

These questions should be simple for any legitimate company to answer. If you’re talking to a company and it’s resistant to providing you with information about its history and experience, it’s wise to steer clear.

Before finalizing a company, get quotes from your top choices. Provide them with an idea of the items you’re selling for an accurate estimate, and be ready to arrange a walk-through. Make sure to request written proposals detailing their estimates and your potential earnings. If you’re torn between two companies, these proposals or estimated earnings could guide your final decision.

Organizing an estate sale can be a complex process, but with careful planning, you can make it manageable. Below, we outline the steps for organizing your estate sale if you choose the DIY route. Some of these steps still apply to those who work with an estate sale service; however, the process is greatly simplified.

Go through your belongings and decide what you want to keep, what to give to family or friends, and what to sell. This can be an emotional process, so take your time. Remember, the goal is to downsize or clear out the estate, so be realistic about what you can keep.

The next step is to take an inventory of all the items in the estate. This can be time-consuming, but it’s essential for determining the estate’s value. For valuable items like antiques, jewelry, or artwork, consider hiring a professional appraiser to ensure you’re pricing your items correctly. In addition, they’re knowledgeable of the value of specific items in your area and can help verify the authenticity of collector’s items and jewelry.

If you hire an estate sale company, they will sort and organize items into categories such as furniture, kitchenware, books, clothing, etc. This will make it easier for shoppers to find what they want during the sale. The company will also clean all items to make them more appealing to buyers.

If you’re not working with an estate sale service, you will need to do these things yourself and should evaluate if the time and resources needed to repair an item outweigh its potential value, as not all things are worth salvaging.

This is the trickiest part of hosting an estate sale. Price your items reasonably to compel people to buy. Remember, the goal of an estate sale is usually to empty the house, not to make a huge profit. Check online marketplaces or use the appraisal values to set fair prices.

If you’re working with an estate sale service, they’ll handle this for you.

Use local newspapers, online marketplaces, social media, and signs to advertise your sale. Include the date, time, location, and a brief description of the items for sale. Include photos of your most appealing things, and highlight valuable items and bargain bins.

Consider hosting the estate sale on a weekend unless there are time constraints. On the day of the sale, arrange items to make it easy for shoppers to browse. Make sure valuable items are in a secure location where they can be monitored. If setting up the sale is physically challenging, consider asking family members or friends or hiring outside help.

Consider enlisting the help of more people to monitor the sale, answer questions, and handle transactions. This can include family members, friends, or hired help.

If you’re doing a DIY estate sale, it’s likely you’ll have some items leftover that do not sell. The best way to get rid of these items is to donate them to local charities, or listing them for free online or in a Buy Nothing group. Some charities and recipients of your items will pick them up from you, so you don’t have to worry about transport.

Like in any industry, there are some estate sale services, especially those offering estate buyouts, that may prey on seniors and try to scam them out of some of their money. These companies know that older adults who haven’t spent as much time online may not be privy to their tactics, and they take advantage of people looking into estate buyouts who may be pressed for time.

The resources below can help seniors understand their home equity options, avoid online scams, and become overall more informed regarding their finances.