Many people think estate sales are only held after someone dies, but in this video we talk about the role of estate sales after someone downsizes.
Most of our clients who are downsizing tell us the one thing that worries them the most is how they will get rid of the things they have in their home, garage, or storage spaces that they don’t plan to take with them to their next residence.
There are typically two sources of concern:
1) The logistics of emptying the house (things like getting it organized and finding the right company to do the sale, and
2) The amount of money they will either get or that it will cost them to have it done.
When it comes to choosing the right estate sale company, there are a handful of things to think about that can be different for people downsizing (versus someone handling a deceased person’s estate).
Timing: During certain times of year the best estate liquidators will book out for several weeks and even months at a time. So, if you just moved and need to empty the house so it can be sold, you don’t want to wait around on a liquidation company who can’t get it done for several months.
Size of the sale: Most experienced estate liquidators who do traditional sales will have a minimum size sale they will accept. They might look at your remaining items and determine that there isn’t enough there to meet what they consider their minimum requirement. They might refer you to someone else or they may simply tell you they won’t do it.
Location: Depending on where the sale is to be conducted, some liquidators may be more enthusiastic or less enthusiastic about hosting your sale. Some are very particular and others are not.
Type of sale: Estate liquidators are a lot like real estate agents in that no two of them do things the same way. They each have a style, process, and way of doing things. For instance, most traditional estate liquidators do either a 1, 2 or 3 day sale over the weekend.
Auctioneers do a lot of pre-marketing and then hold the auction on a specified date and time. Some auctioneers won’t sell only the household items unless they get to sell the property also.
The newest type of liquidators, those who do online auctions (much like ebay auctions work) put all the items being sold on their auction website and let people bid for about a week before the sale closes. Those with the highest bids are given the address of the residence and a window of time to come pick up their items. This is an excellent option, especially in some markets where weather can be unpredictable or you are on a tight timeframe.
Fees and expenses: Estate liquidators generally make their money as a percentage of the gross receipts from the sale. Plan on anywhere from 35% commission on larger sales to as much as 50-60% on smaller ones. Depending on the liquidator, there may be setup fees, marketing fees, trash or dumpster fees, or other service charges above and beyond the percentage they charge.
Review all contracts
Because they are all different, it is really important to review the contract before signing it and make sure you understand the fees involved, the timeframe they are expecting, and so on.
Because most of our clients are downsizing and will have remaining items that need to be cleared out before putting their home on the market, we deal with estate liquidators regularly. About 50 or more times each year in fact. As a result, we have gotten really good at asking questions and helping people through the liquidation process.
That said, there is only a small percentage of people who are overjoyed or even pleasantly surprised by the amount of their check after a sale. The fact is, no matter how good the liquidator is and no matter how well conducted the sale was, we all think our stuff should bring more than it actually does.
The real money is in the real estate
So, if you take one thing from today’s topic, it’s to be reminded that no matter how great you think your stuff is, it only sells for what people are willing to pay. The real value is in the equity of your home. The sooner you can get it on the market, sold, and closed, the sooner you can cash in on the real money.
If you are feeling overwhelmed or have questions about downsizing in Oklahoma City or surrounding areas, call us at 405.708.7010. If you are outside our service area, we can help connect you with great people in your area who are experienced and reputable!
Planning a future move,
but just aren’t quite ready yet?
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