The Ins and Outs of Estate Sales

Takeaways

• An estate sale is a fast way to sell off a deceased person’s possessions that family members don’t want to keep.
• Professional estate liquidators can handle the entire sale process (organization, appraisal, pricing, promotion) in exchange for a percentage (25 percent to 50 percent) of the proceeds.
• Since the industry is unregulated, it is vital to thoroughly research and vet any estate sale company you consider hiring, checking references, insurance, and ensuring a clear, written contract.

Following the death of a family member, you may find yourself needing to sort through many personal belongings accumulated over the deceased’s lifetime. An estate sale is one way to distribute those items that you do not want or need quickly and efficiently.

While selling someone’s furniture, jewelry, artwork, antiques, and other possessions yourself can mean a great deal of time and effort on your part, there are companies that help families sell items. A professional estate sale company will do all the work in exchange for a percentage of the proceeds — typically anywhere between 25 percent and 50 percent.

Pros and Cons of an Estate Sale

An estate sale is not the only way to handle a home full of belongings, and it is not always the best fit. A traditional garage or yard sale usually brings in less money and requires you to price, promote, and staff the sale yourself.

Online marketplaces (like local buy/sell groups or auction sites) can sometimes yield higher prices for specific items, but they take time, require coordinating pickups or shipping, and can be risky if you’re managing payments and meeting strangers. Consignment shops may be a good option for higher-end furniture or collectibles, though they typically accept only select pieces and may pay you after the item sells.

If you’re primarily looking for speed and convenience — especially when there are many items to sell — an estate sale run by a professional can be the most efficient approach.

What to Expect When Hiring a Liquidator

The company usually handles organizing the inventory, staging the house, appraising the value of estate sale items and setting prices, promoting the sale to the public, and hiring workers to run the sale. You may need to pay a separate fee to the liquidator for cleaning up following the sale, including donating or disposing of any goods that do not sell.

Liquidators’ percentages vary widely based on the size of the job, the expected value of the items, and how much labor is involved. A smaller sale with mostly everyday household goods may carry a higher commission because the company still has to sort, stage, price, and staff the event.

Some companies also charge additional fees for services such as trash removal, deep cleaning, dumpsters, or specialty appraisals. Before you agree to anything, ask for a clear breakdown of what the commission covers, what services are extra, and whether there is a minimum fee.

Vetting and Preparing for Your Sale

Keep the following in mind when getting ready for an estate sale:

• First, ensure that you have the legal right to sell the decedent’s personal property. There cannot be any unresolved estate issues. Companies may request legal documentation showing that you have the right to dispose of the property.
   
• Remove from the house anything you want to keep before calling in the liquidators, but avoid throwing too much away – one person’s idea of trash might be another person’s treasure.
   
• No regulatory body oversees the estimated 14,000 estate sale companies in the United States, so before hiring one of them, rely on a referral from a trusted friend or family member and do some research. You can search the website of the American Society of Estate Liquidators, a trade association that requires its members to meet certain requirements and abide by an ethics code.
   
• Check your local Better Business Bureau for complaints about companies you are considering, or attend a sale run by the company.
   
• Make sure your liquidator carries insurance in case there are any accidents while buyers are at the estate sale.
   
• Ensure the company offers a written contract.
   
• Before an estate sale company starts staging the home, take steps to protect valuables and sensitive information. Remove (or securely lock away) important documents, checkbooks, financial statements, prescription information, family photos you want to keep, firearms, and any items with personal identifying details.
  
  It’s also wise to collect small high-value items (coins, jewelry, watches) in one place and confirm how the company will inventory and secure them — for example, whether they use a locked display case, a dedicated cashier area, and staff assigned to monitor high-ticket items. If the sale will be advertised online with photos, discuss what will (and won’t) be photographed so you’re not unintentionally sharing private information.
   
• Ask any prospective liquidating company how it handles security, what happens to unsold items, and what type of clean-up is included.
   
• Note that many companies discourage families from being present during the actual sale.
   
• When vetting potential companies to hire for an estate sale, you may also want to ask the questions such as the following:
  • Will you provide an itemized inventory or estimated value range before the sale?
  • How do you determine pricing, and do you discount items on later sale days?
  • How and when are proceeds paid (and will I receive a final accounting statement)?
  • Do you subcontract staff, and who is responsible if something is damaged or goes missing?

Additional Reading

• Estate Planning: An At-a-Glance Overview
• Proper Estate Planning Reduces Issues of Probate
• Be Careful Not to Name Minor Children as Your Beneficiaries
• Three Estate Planning Options for Your Art Collection
• Questions to Ask a Financial Advisor About Long-Term Care