How Much Does the Average Estate Sale Make?

The average estate sale brings in more than $18,000, according to EstateSales.net, a company that services the industry. If you hire a professional estate sale company to help organize the sale, however, you can expect to pay commissions and fees. These are typically around 40% of sale profits, which would leave the seller with just under $11,000 on average. While it is possible to skip the professionals and organize an estate sale yourself, in turn increasing overall earnings, estate sale companies often make the process much easier, both emotionally and logistically.

A financial advisor can help you decide how to plan for your own estate.

What to Know About Estate Sales

An estate sale is a comprehensive way to liquidate the belongings of a household. Often, they occur after a major life event, such as a move, downsizing in retirement or the passing of a loved one. Unlike a yard sale, an estate sale typically involves selling the majority of a home’s contents, including furniture, collectibles, jewelry and even everyday household items.

Estate sale companies oversee many sales, helping to organize, catalog, price and display items as well as advertise and conduct the events. Sales usually last for three or so days and take place in the owner’s private home. Professionals often begin the process by inventorying items, appraising valuables and setting up displays that make the home feel more like a showroom than a clearance event. Advertising through online listings, local networks and social media can help ensure strong turnout.

After the sale ends, the company may arrange to send unsold items to consignment stores, donate them or have them hauled to a landfill. The end goal is usually to completely empty the home, often to clear the way to sell the house. Ultimately, a well-run estate sale can generate meaningful returns while easing the stress of managing a large number of possessions.

Holding an Estate Sale

While it’s possible hold your own estate sale, often they 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 that sellers and family members are not present during sales.

To hold a sale, heirs or the estate’s executor may start by soliciting bids from several estate sale companies. Bids will specify the services the company provides and the 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 that it follows industry guidelines and ethical standards.

The company will also address plans for how to conduct the sale. In-person auctions on the premises of auction companies are sometimes used for high-value estates. Online auctions have become popular in recent years as well. 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 the sale continues.

Estate sale company services often include appraising, selecting, preparing and displaying items. Representatives typically come the house a few days beforehand. During this time, they will 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. Dealers who plan to resell purchases at a profit often attend as well.

After the event, some companies transport unsold items to their own or another consignment store. Or, they may take them to donate or dispose of.

Average Estate Sale Proceeds

The amount an estate sale brings in can vary widely. According to a survey by EstateSales.net, 42% of estate sales bring in less than $10,000. ¹ Another 37% bring in $10,001-$20,000, while 22% bring in over $20,000.

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.

Geography, economic conditions and weather can all affect the proceeds from any given estate sale. But the number and especially the value of items is the main determinant. Some sales can generate six- or even seven-figure sums. For most, however, after the house is emptied and fees are paid, the end result is likely within the five-figure realm.

As mentioned, the fees that estate companies charge can be significant, cutting into profits. Nationwide, the average seller commission rate is 40%, per EstateSales.net. Additional fees may apply for services like trash removal and advertising.

How Estate Sale Pricing Works

Many people assume that the aim of an estate sale is to obtain the highest possible price for every item. In practice, however, the goal is more often to sell as much of the home’s contents as possible within a limited timeframe. That difference can have a significant effect on the proceeds an estate ultimately receives.

Most estate sales last two to four days, and prices often decline as the event progresses. An item listed at full price on the first day may be discounted on the final day if it remains unsold. This pricing strategy aims to reduce the number of items left in the home when the sale ends.

Not every asset is well-suited for an estate sale, either. Fine jewelry, valuable artwork, rare collectibles, classic vehicles and other specialty items may attract more competitive offers through auction houses, collectors or specialty dealers. Reviewing these items before the sale can help determine whether it makes sense to market them separately.

It’s also worth noting that estate sale companies do not all price merchandise the same way. Some rely on recent market sales, while others emphasize selling the contents of the home as efficiently as possible. Before signing an agreement, ask the company how it values the items, when it applies discounts and how it will handle unsold property after the sale. Understanding that process can help set realistic expectations for both the pace of the sale and the amount the estate may ultimately receive.

Also bear in mind that estates that seem hard to market, such as the cluttered residences or those with 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.

Bottom Line

The goal of an estate sale is to efficiently sell the personal belongings of someone who has passed away or downsized. Typically, these sales take place over the course of just a few days. Professional estate sale companies usually handle everything, from pricing and setup to marketing and transactions, for a commission that averages around 40% of total sales. With average gross proceeds of about $18,000, that means most estates ultimately net just under $11,000 after fees. While the costs can seem steep, many families find the convenience and expertise of a professional company well worth the return.

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 your death. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with vetted financial advisors who serve your area. Then, you can have a free introductory call with your advisor matches to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
• When it comes to planning your estate, you have a number of options. SmartAsset’s guide to estate planning can help you find effective ways to ensure your assets are distributed according to your wishes.

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