Estate sale
A sale of the contents of a house, usually run by a company on commission. It is one of several ways to clear a home, and rarely the only one worth considering.
What it means
An estate sale company prices, stages and sells the contents on site over a weekend, taking a percentage of the gross. Rates vary widely and are negotiable.
An auction, a consignment shop, a specialist dealer for one category, an online listing and a donation are all alternatives, and a typical house ends up using several.
Whoever runs the sale needs the estate's authority to sell, and what does not sell usually has to be dealt with separately — which is where the contract terms matter.
Why it matters
The commission is the visible cost and rarely the largest one. What is sold below its value, and what is thrown away before anybody looked, cost more.
It is also a step that cannot be undone, and it comes after establishing authority and after sorting for documents, titles and anything belonging to somebody else.
When you are likely to meet it
- When a house has to be cleared and there is more in it than the family wants.
- When comparing an estate sale company against an auction house.
- When a company's contract mentions what happens to unsold items.
Ways to turn the contents of a house into money
A typical house uses more than one of these. The question is which route each category of thing should take.
| What is being compared | Estate sale | Auction | Consignment | Direct to a dealer | Donation |
|---|---|---|---|---|---|
| Typical cost | A percentage of the gross | A seller's commission, sometimes a buyer's premium too | A percentage per item sold | None — the price is the offer | None |
| Speed | A weekend | Weeks to the sale date | Months | Days | Days |
| Best for | A whole house at once | One valuable or unusual thing | Furniture and clothing with a market | Volume, quickly | What has no market |
| Who prices it | The company | The auctioneer and the room | The shop | The dealer | Nobody |
| What is left over | Often your problem — check the contract | Returned or disposed of | Returned | Nothing | Nothing |
| Record for the estate | A settlement statement | A settlement statement | Statements per item | A receipt worth insisting on | A receipt, for the tax position |
Whichever route, the estate needs a record of what left and for how much. A beneficiary who suspects an item was undersold has no way to be reassured without one.
How this varies by state
Whether a company needs a license, whether the sale is taxable, and who must remit the tax are all state questions, and Sahvelo has read few states.