According to EstateSales.net, a company that services the industry, the average estate sale brings in more than $18,000. Commissions and fees could be around 35%, which would leave the seller with just under $12,000. Estate sale companies oversee many sales, helping to organize, catalog, price and display items as well as advertise and conduct the events, which typically last three or so days and are held in the owner’s private home. Afterward, unsold items may be sent to consignment stores, donated or hauled to a landfill. The end goal is usually to completely empty the home of someone who has died so the residence can be sold. A financial advisor can help you decide how to plan for your own estate.
Estate Sale Essentials
An estate sale is a public sale of all or most of someone’s personal possessions, typically after death. The goal generally is to generate cash for the estate while clearing out the deceased’s home so the property can be sold. Unlike garage sales, which allow people to get rid of unwanted items, these sales aim to dispose of every item in the home.
Items can range from fine art, antiques and high-end jewelry commanding prices of tens or even hundreds of thousands of dollars to used bed linens and worn-out kitchen utensils that bring pennies apiece to the estate. Similar sales, which may be called estate sales but that some prefer to call tag sales, may be held by a living person who is downsizing, as when they are moving to assisted living or a nursing home.
Holding an Estate Sale
While it’s possible hold your own estate sale, many are managed by companies specializing in the business. One reason for this is the emotional challenge of parting with items that may have been part of a household or family for decades. Recognizing this, professional estate sellers may request sellers and family members not be present during sales so they can more easily and dispassionately exchange mementoes for cash.
To hold a sale, heirs or executor may start by soliciting bids from several estate sale companies. Bids will specify the services they provide and fees they charge. Sellers may also ask about the firms’ experience, marketing plans and pricing expertise. Membership in organizations such as the American Society of Estate Liquidators (ASEL) may indicate a firm is credible and established and follows industry guidelines and ethical standards.
Another issue is how the sale will be conducted. In-person auctions on the premises of auction companies are sometimes used for high-value estates. Online auctions have become popular in recent years. Many sales still occur face-to-face in private homes and feature set price tags, although negotiation is typical. Sales generally happen over three or four days, with tagged prices dropping each day.
Estate sale company services often include appraising, selecting, preparing and displaying items. Representatives typically come the house a few days beforehand to attach price tags, clear clutter and otherwise prepare for the event. Advertisements, placards, email lists and other marketing tools attract buyers. These may include individuals looking for inexpensive items for personal use and dealers with shops who plan to resell purchases at a profit. After the event, some companies transport unsold items to their own or another consignment store, or take them to donate or dispose of as trash.
Estates that seem hard to market, such as the cluttered residences of hoarders of large numbers of low-value items, may pay higher commissions than homes with lots of valuable goods already displayed to advantage. Cleaning, hauling and ancillary services may command additional fees. Less commonly, taxes could be a concern, but this likely only applies when items have appreciated more than their fair market value since they were inherited.
Average Sale Proceeds
The Estatesales.net survey found average gross sales, before commissions and fees, came to $18,565 in 2018. A previous survey in 2017 used a different question and found sales averaged $11,249.
These results don’t include do-it-yourself sales. That’s potentially significant because companies typically refuse to conduct sales for estates with too few salable items or with too little overall value. Respondents to the survey said they turned down opportunities that promised less than $8,228 in sales.
Geography, economic conditions and weather can all act to elevate or depress the proceeds from any given estate sale. But the number and especially the value of items is commonly the main determinant. Some can generate six- or even seven-figure sums. For most, however, after the house has been emptied and the fees paid, the end result is likely to be barely within the five-figure realm.
Bottom Line
Estate sales aim to sell everything in the personal home of someone who has died or, sometimes, downsized, for as much as possible in only a few days. Professional estate sale companies charge around 35% of gross proceeds in exchange to relieving heirs and executors of most or all the details of disposing of the personal possessions included in an estate. After fees and commissions are applied to the $18,000 average gross proceeds, sales generally can deliver just under $12,000 to the estate.
Estate Planning Tips
- An estate sale is just one part of executing an estate plan. A financial advisor can help you decide what role an estate plan will play in fulfilling your own wishes for the distribution of your possessions after you are gone. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
- SmartAsset’s guide to the many aspects of estate planning can help you find effective ways to see that your assets are distributed in the many you prefer after you are gone.
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