How do estate sale companies work? It’s an important question considering there are thousands of different estate sale companies in the country, and the industry is only getting bigger. More than ever, people are looking to professional appraisal and sale companies to help cut down on their clutter or help prepare for a major life change.
What is an Estate Sale Company?
Let’s cover the Basics first, What is an estate sale? An estate is a sale or auction used to remarket large amounts of items quickly. Common reasons to host an estate sale include:
- Sell personal items of someone recently deceased
- Divorce
- Foreclosure
- Downsizing to prepare for relocation
This is where estate sale companies come in. They will help appraise, organize, and operate a sale at the estate. The sale varies in length, but most estate sales are hosted for 3-4 days.
What's in it for them?
This is where estate sale companies come in. They will help appraise, organize, and operate a sale at the estate. The sale varies in length, but most estate sales are hosted for 3-4 days.
Estate sale companies profit by agreeing on the cut of the profits with the estate owners before the sale begins. The average percentage companies will negotiate for is 35% percent of the sale’s profit. That seems like a high number, but it can be well worth it when you consider the amount of work that goes into researching how to hold an estate sale yourself. Hosting an estate sale can be overwhelming, so be sure to follow our guide to hiring the right estate sale company in your area.
Once a company is selected, the hard part is over for the owners of the estate. It’s time to sit back and let the estate sale company do their work. They will go through all of the estate’s items and appraise everything in preparation for the sale. If the right company is hired, the sale organization is streamlined and profits increase. It is the company’s responsibility to maximize how much money the estate and the company walks away with. After all, they are the professionals here.
What Makes a Good Estate Sale Company?
Since there are thousands of companies, the quality an execution of a sale has a wide spectrum. There are many ways a company can be “good” estate sale company, but the top four look like this:
- Accreditation and liability coverage
- Marketing
- Great people skills
- Maximize profits
The ability to accomplish these 4 things is a mark of a good company in the estate sale business. Accreditation and liability is a solid sign the company has done their homework and knows how to not only protect themselves, but more importantly protect the estate they are partnering with.
Knowing how to market is crucial too. A good company will have a strong following that is aware of their sale schedule who can help spread the word and show up.
Everyone wants to feel welcome at a sale. It can feel a little strange showing up to someone’s home and looking through their possessions for sale. A good company recognizes this and will keep a high energy and fun atmosphere for all visitors.
A constant reason estate sales are hosted are for profits. Excellent companies will make sure this goal remains it’s focus. Appraising correctly and salesmanship is an easy way to set apart an estate sale company from the others.
What Happens to the Items That Don’t Sell?
The odds of every single item being sold by the end of the sale is pretty slim, but don’t worry! Estate Sale companies plan for this. Ahead of the sale, they will negotiate with the estate and set a plan for the leftover items.
There are a few common courses of action to clean up on the last day of an estate sale.
- Make items free for the last hour of the sale
- Donate to local donation centers
- Sell remaining items to the estate sale company
- Haul items to a local landfill
When considering estate sale companies, It’s a good idea to ask what their usual plan of action is for the leftovers and ask why they chose one method over the other. Some companies with less-than-stellar reputations will over price everything so they can buy your items at major discounts when they don’t sell.
It is vital to do your research on estate sale companies to ensure you are hiring a reputable dealer. Who you choose can affect every detail of your sale. We’ve got a few helpful tips on 5 keys to a successful estate sale that can help make your sale go smoothly.
How do estate sale companies work? The short answer is estate sale companies host full scale sales and rely on their ability to sell in order to gain a profit. They want to see as many items go out the door and satisfied customers as possible. They see profits by appraising accurately, organizing efficiently, and selling with personality. After an estate sale is finished, the owners of the estate and the estate sale company should see high profits and minimal clean up.
