Q:What is an “Estate or Downsizing Sale?”
A: What is an Estate or Downsizing Sale? An estate sale is a liquidation sale of household and specialized personal property conducted through various channels. The intent is to sell the property to the public, on behalf of an estate or an individual for the highest possible price. These channels could be on-site in-home estate sales or through in-person, live auction or online auctions.
Q:When is an Estate Sale conducted?
A: Estate sales are conducted as part of an estate settlement, to benefit the heir(s) of the deceased, or in the case of a living estate, after the individual(s) has decided to sell their real property in the case of downsizing and relocation.
Q:What are the steps a person needs to take to make a “living” estate sale?
A:The owner needs to determine and identify the “keep” from “sell” items in their property. A moving company should be hired. An onsite estate sale company or auction house should be contracted with. A new home should be contracted for, in the case of multi-care living, etc.If the person proves unable the sortation process physically, mentally or emotionally, a move manager/downsizing expert should be hired to plan and implement the entire process. The owner or heirs remove what they want to keep from the inventory and leave the premises. The estate sale follows this process.
A trash-out can be conducted along with the downsizing process, if managed by the estate sale company and downsizer.
Q:What is the difference in the sales process that the different types of companies use?
A:The methods (and results) are as varied as the experience and professional practices used by the company hired. Onsite estate sale companies hold “events” and should market them as such. They should include all items in the house as “for sale”, with basic exceptions of appliances, window treatments, and anything attached.
They sell the nuts and bolts, in addition to the vehicles, lawn/garden, home décor, books, toys, dishware, furniture, and collectibles. They provide all the props needed to conduct the sale on site, including tables, lighting, security cameras, etc. They typically hold a 3-day/ 24 hour minimum, sales period, employing a team of people to work the sale. They advertise to the general public, attracting several hundred or more, educated estate sale shoppers to the event, in addition to the general public. In-depth online marketing is used and print advertising.
Auction companies come to the property, pack up the items they want to sell, (cherry picking,) or some will pack it and take it all, and move it out of the property to their facility, where it is photographed and sold.
A typical online auction, in-person live or online live, holds multiple sales at one time. A cataloged online auction posts the items for a scheduled period. An item is typically on the sales floor for one to three minutes and the highest bidder wins the item. Items are sold to a live in-person audience or internet audience, and bidding starts low-($1 to $10 typical) and follows the first bid, regardless of the item. The bidder pays a “Buyer’s Premium” of 10% to 30%, depending on the item and auction house. All items are sold, or if not, they are donated or disposed of after the auction.
Onsite estate sale companies set the item pricing according to the market demand and value of an item considering all facets: what it is, the quality, condition, wear and tear, interest, location of the sale, and other local conditions that might affect shopping volume.
With onsite companies, that follow a more aggressive yet traditional sales strategy, posted discounts are used over the sale period. Negotiations are encouraged throughout the sale- and volume purchases are encouraged with additional discounting.
Exceptions: Of course, in the case of precious metals, coins, fine jewelry, rare or more valuable items or specific collectibles are in the sale inventory, it is up to the estate sale manager to know how to finesse these items and to market appropriately. Different products might do better at auction than onsite if a short turnaround is necessary. In this case, the onsite seller should remove those items from the inventory and broker or consign to the best auction channel to sell it.
Some rare, onsite estate companies, can handle not just the entire sale process, but also the cleanout, pack up, removal, donation, and trash out, saving the individual or the estate the stress and huge amount of work involved.
The estate or individual owns the personal property and therefore the tax benefits and is the recipient of the tax donations receipts afterward.
Q:What should an individual or estate heir expect as a result of their household estate sale? A: They should expect an empty home and a financial return, in the case of a “normal” inventory.
Special Cases Excepted: In the case of “dense” inventories and dirty properties; a “packrat” or “hoarder’s” home, where excessive (and possibly HAZMAT) trash removal is involved, “pre and post-sale”, the cost of removal is offset by the sale of the inventory, and the results will reflect that. A significant (or even an insignificant) financial return might not be realistic when considering the labor and trash removal demand and cleaning expenses involved in producing a property ready for sale or settlement.
Finally, an estate sale should not be considered as a sure-bet method to make “extra” income
It is a liquidation to sell as much as possible of the personal property, aka “sale inventory” for the highest possible price.
Selling is a method to clear the property of the contents so that the real estate can be sold- or if sold, the new owner can take occupancy, on schedule with lower stress to all involved.
The heirs or the owners need to form their expectations around reality, not conjecture, hopefulness, or sentimental beliefs and feelings.
They should take a holistic approach to the problem and consider the lifestyle habits of the occupant(s) and of the contents of the property when forming expectations.
EstateMAX is a top-tier, full service downsizing, move management and estate liquidation company serving clients in the Central Maryland, WVA Panhandle, So. PA, NW Washington DC and NOVA areas. In business since 1999, EstateMAX is an Accredited Estate Sale Company through the National Assn. of Estate Sale Liquidators, a 9-year Super Service Award Earning Company by Angi’s ( formerly Angie’s List), and a BBB Maryland Accredited 5-star Small Business.
We work hard for our clients, handling and solving multiple real-life problems: saving them time, money, and stress- giving them their lives back.
EstateMAX provides no-cost telephone consultations, daily. Please Call Laurie Zook, Chief Estates Operator at 301-332-5585. Onsite visits are then scheduled for potential clients.
