In this video, you will learn about the costs associated when downsizing and moving
and the services that come with that investment.
If you haven’t moved in a while, you may experience a little bit of sticker shock when you start investigating the costs of moving. To help you plan ahead, we have provided some information about services you will likely want to use and the costs associated with those services.
Professional Move Management
Think of professional move managers as similar to wedding planners. They organize, coordinate, and oversee all the details of the move. In fact a good move manager will anticipate potential obstacles and deal with those issues before they become problematic. Professional move managers have people who handle the more physical aspects of the move like space planning, packing, moving, unpacking and putting things away.
They prepare your new home for your arrival by making beds, putting essentials in place in the kitchen and bathrooms, and even make sure you have toilet paper, shower curtains, and your morning coffee! Once the move is made, your move manager will assist you in arranging for liquidation of any remaining items by coordinating an estate sale, donation, or storage.
Fees for move management will depend on the amount of help you need or want, as well as the size and distance of your relocation. Move management companies will either quote hourly rates or project rates – or both. Keep in mind that despite what may seem like a high hourly rate, these teams are extremely efficient and can accomplish more in an hour than most people get done in a day!
Fees can range from $750 for very small moves to $5,000 or more for larger or more complex ones. The average fee for move management when moving from a home to a one or two bedroom apartment is typically around $2000-$2500 (all markets vary).
Moving Services
If you are hiring a move manager, they will have preferred moving companies they have used and can typically estimate the move expenses. Some will include it in their total fee for move management (bundled), while others leave that up to the client to handle independently.
Moving companies typically charge by the hour for local moves. They charge by the pound for interstate moves (outside their local range or out of state). When moving locally, you want to verify that you are comparing your estimate based on how many movers will be on the job (man hours), the size and number of trucks, and any supplies or insurance costs included.
You can expect to pay from $100 – $200 per hour depending on how many movers and the size of the truck necessary. Most movers have a minimum, so if you have a really small move that only takes 2-3 hours, plan to pay the minimum (usually $350-$400) – again this depends on where you live. Larger local moves can be done in a day, so the most you might expect would be $800-$1600 (one truck – 2 or 3 movers).
Professional move managers will likely save you some money on the moving expense because they are very organized and know how to direct the movers, making them more efficient while they are on the clock.
Reminder: Movers will not transport certain items, so if you are not using a move manager, you will need to arrange alternative plans for things like lawn mowers, fuel cans, alcohol, perishable food items, firearms, cleaning supplies, etc. If you are using a move manager, they will make these arrangements.
Estate liquidation
When downsizing, you will likely need to contract with someone to liquidate the remaining items in your home. Most estate liquidators do not collect fees up front, but rather deduct their expenses from the total gross receipts from the sale. These fees can include labor for setting up and managing the sale, marketing, cleaning, trash removal, credit card fees, etc. The commission on items sold usually ranges from 35%-50% depending on the size of the sale. Smaller sales will require a higher percentage to the liquidator and larger sales may have smaller commissions. Big ticket items like cars or equipment may be less of a percentage, but ask – not always. Once the sale is complete and all the fees and commission have been deducted, you receive a check for the remaining amount from the liquidator (usually within a week).
Every estate liquidator is different, so make sure you are comparing apples with apples. ALWAYS get your agreement in writing and verify you understand the fees. The biggest surprise is when the estate liquidator presents their customer with an invoice at the end. If the items sold do not cover all the fees, you will owe the liquidator when it’s all said and done. Reputable liquidators will tell you if they think this might happen so you are prepared – but not all liquidators are experienced enough to be able to evaluate this.
Covering Costs
We tell the average person with an average house that if their estate sale nets them enough to cover the cost for move management, packing, and moving, they are way ahead!
Getting Estimates
Keep in mind, every move is different, so getting estimates is going to be important.
A note about estimates: Cheaper isn’t always better (or actually cheaper).
Some vendors might “underbid” your job so they can secure your business. Then, unfortunately, their final bill is higher. Can this happen on any estimate? Absolutely! We don’t get it right every time either. Occasionally things fall outside the control of everyone involved. That said, intentionally underbidding a job is a practice for some vendors and this is how they operate as a matter of practice. Just make sure you are comparing apples with apples and that you question anyone who offers a much lower bid than other service providers.
What could cause the fees to be higher than the initial bid – even when the bid was considered fairly accurate under normal circumstances?
Here are the top 5 reasons
- Weather delays or inclement weather (rain, snow, ice, etc.)
- Elevators (if the elevator is not designated for movers it can be very time consuming)
- People involved (well-meaning friends and family who show up on move day tend to cause delays)
- Traffic (if moving trucks are stuck behind a wreck or in construction, they are charging for the time they are sitting there – it’s nobody’s fault)
- Last minute changes or additional stops added (if the plan changes, expect a fee)
Do you question if estate sales are worth the money? Click HERE to learn why or why not.
