Estate Sale Mistakes

1. Putting the house up for sale before planning the estate sale

Planning an estate sale is labor intensive and may require days if not weeks to prepare, especially as it relates to the setting up and pricing of your items. As a result, most estate sale companies are booked out for weeks, even months at a time, and may not have an opening for your sale on their schedule. You never know how quickly your house may sell. It may sell same day or within a few days of listing, leaving you with very little time to coordinate an estate sale – you may only have 2-4 weeks to complete an estate sale and cleanout. With this in mind, it’s best to find an estate sale professional prior to listing your home so you can properly coordinate all scheduling.

2. DIY vs. hiring a professional estate sale company

Every estate sale is different depending on volume and value of items, complexity of the situation, etc. Some estate sales should be run by a professional estate sale company while other simpler, less complicated ones will not.  When researching, you may even find that your estate sale does not meet the minimum requirements for some estate liquidation companies.  Most estate sales will take between 30-40 labor hours to complete. this includes: sale set-up, pricing, staffing of the actual sale, breakdown, and cleanup/cleanout. A professional estate sale company will need to be sure they can cover these expenses and still make a profit. Here are some instances where it makes sense to seek a professional’s help:

• Expensive, rare, collectible or antique items are involved
• Large volume of items to be sold or larger home (the larger the estate, the greater the need for professional help)
• High value estates with many varying assets to be sold
• Out of state family, trustees, or personal representatives
• Time constraints – a professional estate liquidation company can manage and execute your estate sale far more quickly than an inexperienced person can
• Emotional duress, grief or anxiety around the situation

Taking all of this into consideration, you should have several estate liquidation companies visit your home and give you their opinion on how and/or if they can help you.  Most estate sale companies have certain requirements to take on an estate sale, so you may get an array of responses from different companies.

3. Do NOT throw anything out

This is critical. There are far too many instances of people renting a dumpster and mistakenly filling it with items they perceive to be trash or of no value. Do NOT do this!!! An estate sale professional must review your items first! There are many items that are not only marketable but may also be collectible or of high value, the kind of items a layperson may not know about and view as worthless.

Let a professional evaluate the estate and give you guidance before you begin the process of emptying things out. In other situations, there are homes that may be unsafe to enter, such as hoarding, moldy, structural damage homes, etc. It is important to consult with a professional estate liquidation firm before proceeding, as you may require specialized assistance.

4. Not properly preparing or cleaning the home

Perception is reality. So if customers see an untidy or messy home while shopping your estate sale they may equate that to the value of your items. The cleaner and more presentable the home is, the more likely you are to get top value for your items. The same goes for the exterior of the home as well, great curb appeal sets the stage before the shoppers even enter the home.

Here are just a few items to be on the look out for when reviewing an estate sale contract:

• Hourly setup fees charged per labor hour – this may seem normal, but it’s not uncommon to spend upwards of 30-40 labor hours setting up a sale.  If your estate sale contract is for 40% commission, PLUS labor expenses, there may be very little or no revenues left to distribute after the sale.  Additional setup or cleanout fees may be acceptable, but they should be pre-determined and fixed, not undefined and unlimited.
• Estate liquidation company to retain possession of all unsold items at the end of the sale in order to empty out the home – this clause is often characterized as a feature and not a potential way to defraud a client. However, an unscrupulous company may find ways to ensure that not much sells during the estate sale, creating the opportunity for the items to be removed and sold by the company at a later date at a 100% profit rate (with no commission). It’s important you understand (and have some control over) what happens to items that are not sold.
• Homeowners or family may not be present during the sale – This is quite common and is actually a legitimate clause in an estate sale contract. Estate sales can be very emotional for family members, and their presence can negatively impact the estate sale’s success, which is why you will sometimes see this clause in an agreement. Most estate sale provisions are negotiable, but this particular clause may not be.
• Commissions due on items removed from the estate after the contract has been executed – another legitimate contract clause that is very common and not typically used in any harmful way.  Certain high-value items are often the reason an estate sale company has agreed to perform the sale at a particular commission rate, or even at all.  If those items are removed after the terms of the sale have been agreed to, you are changing the contract. Since most companies will not remove this clause, it is especially important that you have removed all items that friends and family want would like to keep before you contract with an estate liquidator (or at least separate these items so there is no confusion as to what is included in the sale and what isn’t). You definitely don’t want to have to pay commission on items that aren’t even being sold!

Estate Liquidations are complex, labor intensive, and stressful. Make sure that the estate sale company you choose fits your family’s needs, goals, personality and communication style.  Most importantly, both you and the estate sale company you choose need to feel that you can trust each other. This will help to ensure a smooth and successful estate sale!