This is the first time you’ve sought help from an estate sale company, so how can you learn what to expect when it comes to professional estate sale services? This article explains the various services that companies offer, and the commission structures you may find. Becoming familiar with these details before you sign a contract will help you choose a liquidator you can feel good about.
How estate sale companies charge
There are usually zero upfront costs to you. Most estate liquidators earn a percentage (commission) of the total sales made during your estate sale. The commission can be a flat percentage (average between 30%-50%) of total sales, a sliding scale commission based on the selling price of each item, or a commission amount that is reduced when gross sales reach a certain threshold.
You hire a company to liquidate your house at a predetermined flat percentage of 45%.
After setting up, advertising, and holding a 3-day estate sale, the sales total $12,400.
The estate sale company deducts 45% commission ($5,580).
You do not require any additional services.
You receive a check for your portion of the sale proceeds, $6,820.
Additional Service Fees/Reimbursements
You can expect most estate sale companies to charge additional fees or reimbursements for extra services needed to finish the job. These are normally deducted from your portion of the sale proceeds. These expenses can include the cost of:
an on-site trash container (for major jobs where there is a lot of sorting/debris)
post-sale item removal (completely emptying the home)
an hourly rate to professionally package or box items
hauling items to a trash facility
Our clients usually want the home emptied after the sale and have at least one or two donation or trash loads remaining. We charge about $75-150 per load (depending on the location of the sale).
If you hire a company who offers to decrease their commission as gross sales increase, then you may walk away with a bigger check than if you chose a flat commission rate. A tiered commission structure may look something like this:
50% of sales grossing $10,000 or below
40% of sales grossing $10,001-$20,000
35% of sales grossing $20,001-30,000
30% of sales grossing more than $30,000.
What the estate sale commission covers:
Our company absorbs the operational costs incurred in staging, advertising and staffing your estate sale. Not all companies operate this way, so be aware of the fees that may charged by the liquidator you interview.
For example, Nunneley Estates & Appraisals will never charge you a fee for:
merchandise cleaning supplies
set-up materials, tables, locking display cases
research databases, expert opinions of value
payment for our staff during the sale, snacks for staff or shoppers
packing materials for purchases
general liability and theft insurance policies
fees for accepting credit cards.
We consider all of the above expenses the cost of running an estate sale company, but some companies may pass these costs on to you. We also benefit from having a co-owner who is an accredited appraiser.
Be aware of extra estate sale fees
We know of estate liquidators who charge for all sorts of expenses that they get away with because the client is uninformed. This can quickly add up to thousands of dollars subsequently deducted from your portion of the sale after its’ completion. Read over your proposal carefully, and don't hire a liquidator without a signed agreement.
So how much should you pay for estate sale services?
That all depends on your situation. Hiring a pro can help to relieve a lot of stress during a challenging time and increase the sale's overall success. The quantity and quality of your items, the work involved in setting up your sale, and any sale constraints like location or time frame for liquidating will affect the proposals you receive from various companies.
Don’t choose solely based on commission.
Find an experienced company who can deliver the services that you need, has knowledge of how to price items, can scout valuable items, and bring in more shoppers. An increase in total sales will often offset a “cheap” proposal offered by a fledgling estate sale company.
Nunneley Estate & Appraisals specializes in onsite estate liquidation and serves:
Sacramento & surrounding (Elk grove, Arden-Arcade, Carmichael, Fair Oaks, Citrus Heights, Orangevale)
Roseville, Rocklin, Lincoln, Del Webb & Sun City Communities
Auburn, Folsom, Granite Bay, El Dorado Hills, Cameron Park, Placerville
Rancho Murieta, Meadow Vista, Lake of the Pines
Davis, Vacaville, Fairfield, Green Valley
Also Monterey, Sonoma, and Napa Counties with appraisal services
Price Tag Services - so that you can hold an estate sale yourself with peace of mind that items are priced appropriately. Contact me for a copy of my appraisal fee schedule.
Estate Sale Services - Hire a pro so you can relax and pocket the profits while we do all the work!