Are you a potential estate seller? The words “estate sale” can mean different things to different people. There are indeed multiple ways to interpret the definition of an estate sale.
For example, most people who are not real estate agents think of an estate sale as an auction where furniture and other household possessions are sold off to the public. Without a doubt, this is one definition of what an estate sale is.
A significant amount of real estate agents or others in the industry could also assume an estate sale to mean selling a house of one of the heirs.
Both meanings of an “estate sale” are considered proper. In some areas of the country, estate sales are also called “tag sales.”
For purposes of this article, I will be talking about an estate sale as liquidating assets or household possessions owned by the heirs of the property.
You can think about an estate sale as having a massive yard sale on steroids! Let’s have a look at everything an estate seller should know.
How Do Estate Sales Work?
Unlock the secrets behind those signs on telephone poles and advertisements within your local paper. Our resource will be your ultimate guide to understanding estate sales, those mysterious treasure troves where forgotten items of yesteryears are given another chance to be loved.
We’ll delve into what an estate sale is, the process behind organizing one, buying tips for first-time goers, and everything else you need to know. Whether you’re a seasoned bargain hunter, a novice treasure seeker, or simply curious about this phenomenon, your journey to mastering the art of estate sales starts here.
Prepare yourself for an adventure akin to time travel—you never know what gem awaits from a different era at your next estate sale!
Estate sales involve the sale of a person’s belongings, typically after their passing or when they need to liquidate their assets. These sales can be organized by family members or professional estate sale organizers who will appraise the items for sale, market them, and set up the sale at the location where the belongings were kept.
Estate sales usually last several days, with prices either firm on the first day or reduced later. Bargain hunters often wait until the last day to get a deal. Those interested in attending should research estate sale companies, read reviews, and come prepared with cash to purchase.
What is an Estate Sale?
An estate sale is a popular way to distribute a family member’s possessions after death. It involves selling items directly out of the home they belonged to. However, estate sales are not limited to the belongings of deceased individuals. They can also be held by individuals who want to sell their belongings or families who are moving quickly and don’t want to take their possessions with them.
For instance, imagine a family planning to move across the country due to a job transfer. Instead of packing up and shipping their belongings, they hold an estate sale to liquidate their assets before the move quickly. This allows them to start fresh in their new location without transporting unnecessary items.
Estate sales serve as an effective means of dispersing household items, furniture, antiques, collectibles, clothing, and more at a fair price. Families that wish to hold an estate sale often hire professional estate sale organizers to help appraise and market the items for sale. These organizers specialize in evaluating the value of various possessions and ensure that each item is priced appropriately.
They Usually Last a Few Days
During an estate sale, shoppers can peruse and purchase items from the estate at set prices. Estate sales usually last two to three days, giving potential buyers ample time to explore the available offerings. Prices may be reduced over time as the sale progresses, encouraging larger crowds and potentially attracting more buyers.
While hosting an estate sale is a good option if you have a large volume of items to sell quickly and efficiently, it may not be necessary if you only have a few belongings. In such cases, you might consider alternative options like garage sales or online platforms for selling individual items.
Now that we understand what estate sales are, let's explore how one organizes such an event in detail.Click To TweetOrganizing an Estate Sale
When it comes to organizing an estate sale, preparation and attention to detail are crucial. The process typically starts with a thorough assessment of the items you wish to sell. Estate sellers should take inventory and categorize belongings into different groups. For example, arranging items such as furniture, appliances, collectibles, clothing, and more. This will help in pricing items effectively.
Once you have a clear idea of what you want to sell, it’s important to determine an appropriate date and duration for the estate sale. Consider factors like local events, holidays, and even weather conditions that may affect the turnout. Most estate sales last between two to three days to attract a wider range of buyers.
Let’s say you’re organizing an estate sale for your late grandfather’s belongings. You choose a Friday to Sunday timeframe in early summer when the weather is expected to be pleasant, anticipating increased foot traffic from potential buyers.
Next, it’s time to price each item. Seek assistance from professional estate sale organizers or conduct independent research to determine fair market values for various possessions. When pricing items, consider their condition, age, rarity, and demand. It’s advisable to price items realistically while still allowing room for negotiation.
Arrange Items in an Appealing Fashion
In addition to pricing, an estate seller should properly display and organize the items within the home. Place similar items together, create appealing displays, and use clear signage or labels with prices and relevant information. This will make shopping easier for potential buyers and encourage them to explore more.
Advertising plays a crucial role in ensuring a successful estate sale. Utilize various channels such as online classifieds, social media platforms, community bulletin boards, and local newspapers to promote the event. Include attractive photos of key items and highlight any unique or valuable pieces that may catch people’s interest.
Lastly, ensure you have ample cash on hand to provide change during the sale. While some buyers may prefer electronic payments or checks, many still prefer using cash for smaller transactions at estate sales.
Think of organizing an estate sale like hosting a well-planned and elaborate dinner party. You carefully select the menu, create an inviting ambiance, and ensure there is enough space for guests to comfortably enjoy the feast.
By following these steps and paying attention to crucial details, you can successfully organize an estate sale that attracts buyers and ensures a smooth experience for everyone involved.
Hiring Professional Estate Liquidation Organizers
When it comes to organizing and managing an estate sale, the task can be overwhelming for individuals or families who may not have the time, expertise, or emotional bandwidth to handle such an endeavor. That’s where hiring professional estate sale organizers comes in. These experts are well-versed in the intricacies of estate sales and can provide invaluable assistance throughout the process.
Think of a professional estate sale organizer as the conductor of a symphony. They bring together various components, harmonize them, and ensure a smooth and successful event.
Professional estate sale organizers offer a range of services tailored to meet the specific needs of their clients. Their responsibilities typically include assessing and appraising the value of items, creating an inventory of belongings to be sold, designing and executing marketing strategies to attract potential buyers, managing the logistics of the sale itself, and providing guidance on pricing strategies.
Numerous Benefits With Professionals
One advantage of hiring professionals is their knowledge of market trends and current demands. They can accurately evaluate the value of items based on their condition, rarity, historical significance, or collectability. This expertise helps ensure that items are priced competitively while maximizing their potential for sale.
Furthermore, professional organizers possess extensive networks within the industry. They have connections with collectors, dealers, and enthusiasts who may be specifically interested in certain types of items being sold. By leveraging these connections, they can help widen the reach of your estate sale and increase the likelihood of finding interested buyers.
Additionally, professional estate sale organizers understand how to effectively display items to maximize their appeal. They create visually appealing setups that engage potential buyers and encourage them to make purchases. Through their experience, they have developed a keen eye for presenting merchandise in an enticing manner that highlights its beauty or functionality.
However, it’s important to note that hiring professional estate sale organizers does come at a cost. Their services are typically compensated through a commission-based model, where a percentage of the final sales is allocated to them. This fee varies depending on the organizer’s level of expertise, location, and the size of the estate sale. This is how estate sales work.
Interesting Statistics
- As of 2020, approximately 30% of American adults have held an estate sale or considered holding one, showcasing a growing trend in handling personal belongings after life events such as death or downsizing.
- In a survey conducted in 2021, it was found that professional estate sale organizers successfully sell about 85% of the total content of an average home during a sale.
- The National Association of Estate Liquidators estimates that there are currently around 14,000 full-time professional estate liquidators in the U.S, up by over 50% from five years ago, highlighting the popularity and effectiveness of these sales.
Why Have an Estate Sale?
More often than not an estate seller will have a sale for one of the following reasons:
- The heirs do not have any interest in keeping the property left behind by the deceased relative.
- The heirs cannot agree on who gets what so a court has ordered the liquidation of remaining assets.
- The will of the deceased may have asked for an estate sale to take place.
Estate sales are most often completed by an auctioneer when it involves liquidating possessions and a real estate agent when it comes to the actual home sale.
An Auctioneer will usually take a percentage of the total earnings of the estate sale as payment, typically between 25 and 35 percent. An auctioneer will put a significant amount of effort into making the estate sale go smoothly.
Keep reading, and you’re going to get the best tips for having an estate sale.
If you thought you would be reading about selling a home of a deceased relative be sure to check out my tips for selling an estate home.
You will glean some fantastic advice for the procedures surrounding the sale of a loved one’s property.
Tips For An Estate Seller
So how do you go about having an estate sale? You have just gone through the emotional distress of a death in the family and now this?
For many folks, they have never had to deal with selling a deceased relatives possessions. Hopefully, by the time you’re finished reading, you’ll be able to avoid some of the common mistakes people make with estate sales of a parent or other relative.
The passing of a parent or relative is always difficult for those left behind. The fact that you now have to sort through the possessions of your loved and decide what to do with them only makes the situation harder.
It is essential to get things right with your loved one’s estate, though, because simple mistakes can lead to the loss of valuable possessions—both of financial value and of sentimental value. Sometimes it is not even a situation of dealing with death but a desire to downsize to a smaller home.
1. Clarify What Debts Need to be Addressed.
The law is clear concerning the debts of your deceased parent or relative. You are not responsible for paying the debts as long as you are not a co-signer or a spouse. However, if obligations exist they may need to be paid out of the estate before heirs can benefit.
It is possible that profits from the estate sale need to be used to pay outstanding debts. You will want to get a clear understanding of what liabilities exist and what the law dictates concerning those debts. If the situation seems complicated or difficult to understand, it is best to hire an estate attorney to cover all your bases.
2. Develop a Plan Before You Start Sorting.
2. Develop a Plan Before You Start Sorting.It can be tempting to go room by room and sort through each item, but this is usually not the best strategy. Some things are more important than others and are best sought and classified while you are fresh and clear-minded.
Things like family photos, legal documents, medical documents and personal communications are probably a priority. Go through each room and search for these items and sort them first.
Then go through the rest of the things—but not before you talk to an expert who can advise you on what may or may not be valuable.
3. Talk to an Estate Sale Appraiser.
One of the most important tips when having an estate sale is to understand the value of what you have. Unless you are a professional appraiser, you are likely to have trouble determining the worth of everything in your relative’s home. It is common for people to overvalue some things and undervalue others.
For instance, you may be passionate about photography and have a solid understanding of the value of photography equipment. If your relative has any such stuff, you will know right away that specific items should be guarded carefully and sold only after they are appropriately appraised. But you may have no idea of the value of silverware.
If your relative has a bunch of silverware, you may be just as likely to sell it in a bargain bin as you are to have it appraised. This could lead to a severe loss if the relative happened to have some valuable pieces.
Professional estate sale organizers often collaborate with experienced appraisers to arrive at suitable prices. These appraisers have extensive knowledge of the value of various items such as furniture, artwork, antiques, collectibles, and other valuable possessions. Their expertise ensures that items are priced accurately according to market standards.
For instance, if you have inherited an antique vase from your grandmother but do no know its worth, an appraiser can examine its condition, provenance, and comparable sales data to assign it a fair market value. This valuation informs pricing decisions during the estate sale.
Pricing Correctly is Essential For an Estate Seller
It’s important to remember that not all items should be priced at their maximum value. Estate sales are often used as an opportunity to clear out belongings quickly. When setting prices, professional organizers consider factors such as market demand, current trends, and negotiation room. They strive to balance attracting interested buyers and maximizing return on investment.
Additionally, estate sales usually run over multiple days. It is common practice for organizers to implement discount strategies as the days progress to incentivize sales and ensure that most items find new homes by the end of the sale. This may involve reducing prices by a certain percentage or offering bundle deals for purchasing multiple items together.
It is worth noting that estate sale organizers consider the emotional attachment individuals may have to specific items. They respect the sentimentality associated with belongings and strive to find a pricing approach that balances both monetary value and sentimental significance.
A professional appraiser who specializes in estate sales can go through the house with you and give you a much better idea of the value of your possessions. You only want to sell things that you know the value of.
The appraiser would be used only if you were not going to use a professional auctioneer that provides estate sale liquidation services.
4. Don’t Let Your Attachment to Things Outweigh Market Value.
The items that you are most fond of may not be worth as much as you think they are. Trying to sell something for more than it is worth rarely works, and sometimes can backfire on you—such as when selling a home.
In the case of your relative’s home, listing it for more than it is worth may cause it to sit on the market for months without selling.
Then you will be forced to drop the price to sell it or take it off the market altogether. You might wind up having to sell the home for less than it would have gone for if you had priced it correctly in the beginning. These are affectionately recognized as home pricing mistakes.
Speaking with an appraiser is the best way to determine what the market value of what you’re selling. When it comes to the possessions of your deceased relative, if you are genuinely attached to them, it may make more sense to keep them. That will be better than try to sell them for a price that no one but you would be willing to pay.
5. Seek The Help of Estate Sale Professionals For Determining Value.
Having friends to help you out in this challenging time is a wonderful thing. However, you need to make sure that help does not become a hindrance. There are some tasks that are better left to the professionals. For example, determining the value of your relative’s possessions.
Just because your friend is passionate about antiques and has seen every episode of Antiques Roadshow, does not make him or her the right choice for your situation. A professional appraiser will cost money, but that appraiser will also know how to determine the market value of what you are selling—a skill that ensures you get as much money as possible from the sale.
If you are going the professional route of hiring an auctioneer, they will help with establishing the value of your belongings.
Analyzing the value of your property, organizing items for display and making sure everything is well coordinated is part of what an auctioneer does.
If you own rare, expensive or specialty items, an estate sale expert can be vital for determining the right asking price. The best estate sale agents have professional resources. They will have experts in selling fine art, collectibles, jewelry, unique items and other valuables.
6. Try to Sell to Individuals, Not Dealers.
Dealers are there to make a profit. They need to buy things at a low enough price to turn around and sell them. You can expect a dealer to offer you a price that may be adequate. However, it will not be as good a price as you could expect from an individual buyer.
Working with a dealer can be useful when you need to move a large volume of things, or if you are in a hurry to get rid of something. But if you are looking for the best price, avoid selling to dealers.
A good analogy in the real estate business would be selling your home to a company like We Buy Ugly Houses. Selling to them would offer convenience but certainly not getting you the most amount of money.
7. Look Everywhere—Attic, Basement, Storage, etc.
The attic, basement and storage areas of your relative are probably the least appealing places to visit. They are often dusty, dirty, moldy, etc. However, you need to explore them anyway.
It is these out of the way places that the most valuable items are often found. You may stumble upon something that is exceptional and valuable. It may even be something your relative did not know was so precious.
8. Determine if You’re Going to Use a Professional Estate Seller or Sell Yourself.
Once you have collected everything that may have some value, you’re going to need to decide whether you’ll sell the items yourself or use a professional estate sale company. Just like selling a home for sale by owner there are pros and cons to selling valuables yourself.
It will be up to you to decide if the services an estate sale professional provides are worth it. The typical estate sale professional will keep approximately 25 to 40 percent of the sale proceeds.
Service fees, however, can vary from company to company and location to location. Prices can certainly go up or down considering your area and the services offered.
It’s important to ask each company how they plan to research, appraise and price your items, as well as the expectations of how many days the sale will last.
Usually, estate sales last one to three days. It is also imperative to find out how much negotiating with buyers it will do. Typically there is not much negotiation in the beginning. There is usually more as you near the end and attempt to liquidate completely.
Like anything else, it is important to check online reviews, and the Better Business Bureau when researching estate sale companies. Using Google as a tool is also prudent to see if there is any bad press on the company.
When you understand how estate sales work, the process will be smooth.
9. What Are My Selling Options if I Don’t Use an Estate Sale Company?
There are some methods you can use to get rid of personal belongings besides an estate sale. Some of the more popular include:
- Holding your own auction – You hire an auctioneer who will sell the items for you. There are two kinds of auctions. They are known as absolute and reserve. An absolute auction is where things will be sold to the highest bidder regardless of the price. A reserve auction is where the owner sets a minimum amount they are willing to sell an item for. If the minimum price is not met the item is not sold. The fees auction companies charge can vary quite a bit. Typically it is from 10 percent for high-end items to 30 percent. They may also charge pickup, storage, and advertising fees.
- Use Craigslist, eBay or Facebook – many people have turned to these sites as excellent ways to sell items found in homes whether it is an estate sale or their own property.
- Have a yard sale – this is about as for sale by owner as it gets, but you know how much people love yard sales! Don’t expect a yard sale to bring you top dollar.
- Use a consignment store – you will probably take in the least amount of money using a consignment store, however, it could offer one of the easier methods. Consignment shops will typically take 40-50 percent of the sale price.
- Donate – some people like to just donate the items to charity. With a receipt, you can use this as a tax deduction. If you have furniture that doesn’t have any real value there are charities where you can donate furniture.
10. What to Do When Selling Yourself.
- Advertise your sale everywhere you can think of including local newspapers, Craigslist, Facebook, etc.
- Ask friends to help you on the day of your sale. Having some extra hands will make things go far more smoothly.
- Take precautions – never leave entry and exits untended. You need to make sure nobody tries to steal any of your possessions.
- Mark things that are not for sale. You’re going to find people will ask about things you don’t intend to sell.
- Make it easy for everyone to view what you are selling. Place all your items in the center of the room to make traffic patterns flow smoothly.
- Have a plan in place for what you don’t end up selling.
Here are some excellent yard sale tips that can be applied to holding an estate sale.
11. Understand Estate Sale Tax Laws.
The last and one of the more essential estate sale tips is to understand the tax laws. While small sales like garage sales can fly under the radar of the tax man, estate sales are different.
If you are selling a substantial amount of items or valuables, you’ll really want to pay attention to the tax laws regarding an estate sale. The preceding reference will answer most of your questions when it comes to the tax ramifications of an estate sale.
Finding Estate Sellers Near Me
You may be wondering how to find an estate seller? A couple of options would be speaking to a local real estate agent or family/friends who may have done an estate sale. If you don’t know anyone in the area head to Google.
Do a search for estate sellers near me or estate sellers in my area. You are likely to see estate sale companies nearby your location. Just make sure you do a bit of due diligence before selecting an estate seller to work with.
Pros and Cons of Hiring an Estate Sale Company
Let’s review the pros and cons of hiring an estate seller.
Pros of Hiring an Estate Seller
- They will advertise the estate sale for you
- An estate seller will sell your items fast
- You don’t have to be present
- Estate sellers deal with unsold property
Cons of Hiring Estate Sellers
- You will need to share the profit with the estate seller.
Final Thoughts For Estate Sellers
As an estate seller there is a lot to know. Hopefully, you have found these eleven tips for holding an estate sale useful. Avoiding the common mistakes of estate sales will keep the stress you already have from being worse!
About the Author: The above Real Estate information on how an estate sale works and what an estate seller should know was provided by Bill Gassett, a Nationally recognized leader in his field. Bill has expertise in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications he has been featured in. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of Metrowest towns for the last 37+ years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
