After a loved one passes away, you’ll eventually have to part with some of that person’s possessions and keepsakes. Many survivors believe this time reawakens deep pain. In a recent New York Times article, a man who had just arranged an estate sale said, “It was almost like another form of grieving.”
Fortunately, there are a number of reputable companies scattered across this country who are qualified to compete for your business. They usually base their fees on both the size of the estate involved and its precise inventory. When seeking an estimate, you’ll need to tell the estate sales company how many rooms you have filled with antiques, general pieces of furniture, and artwork. It’s also important to describe the extent and presumed value of your jewelry and collectibles.
Appraisals and Estate Company Fees
Before inviting a company to visit the house (and any storage unit where additional items are kept), you should have your most expensive items appraised.
This should help you decide whether or not to accept the bid the company gives to you. Since the estate sales company will keep a percentage (often between 25 and 50 percent) of what they take in, they’re fully motivated to give you a correct estimate. Of course, it’s always wise to try and attend the sale to make sure all transactions are properly handled and recorded.
Status of Industry Regulation and Availability of American Estate Sales Companies
At present, no one really knows how many estate liquidation companies are operating in the United States. After all, “the industry is unregulated and [it] has no central licensing body.” Nevertheless, the president of the American Society of Liquidators, Julie Hall, says she believes that there may be about 14,000 of these companies. Hopefully, a government entity may one day choose to regulate this industry. It could then make sure all customers are treated fairly and all sales agents accurately report their sales and pay all taxes due. However, since there is a current lack of regulation, you must move forward with considerable caution. Otherwise, hiring the wrong estate sales company could prove disastrous.
Nationwide and Regional Estate Sales Companies
Right now, there really are no nationwide companies offering estate sale services to everyone. In fact, “most estate sales companies are mom-and-pop operations that cater to a regional clientele.” However, at least one company is offering its services beyond the borders of its own state. Blue Moon Estate Sales of Fuquay-Varina, North Carolina (south of Raleigh) is one such enterprise. This company is run by a married couple, Ken and Debra Blue.
Blue Moon has been handling estate sales for the past six years. It “now has five franchises in North Carolina and Texas,” in addition to its home office.
The following section addresses some of the critical questions you should pose to an estate sales company you’re interviewing.
Useful Questions for Hiring an Estate Sales Company
Attend a large estate sale in your area. Before ever hiring someone to run an estate sale for you, take the time to attend one being run in your own neighborhood or city. While there, look around and carefully decide if you like the way the operation is being run — and the way you’re treated by those running it. Try to take note of the operation’s strengths and weaknesses so you can better advise those you may hire one day.
Carefully interview your top candidates over the phone and in person. Be sure to take notes about how long each company has been operating, what percentage they take from each sale, and how much they estimate it will cost them to run your sale. Always get details regarding the quoted bid and speak with at least three or four companies — long before insisting upon a fully executed contract that states each party’s rights and duties. Finally, make sure you cover the subject of paying all taxes due.
Wait to discard items you assume are worthless. Before ever calling an estate sales company, try to avoid throwing away anything unless it’s definitely trash. Many of the things people often assume are worthless can often net “big money.” Also, if you’ve decided to hire a particular company but want to first personally take or otherwise dispose of certain items before the estate sale, be sure this information is specifically included in any contract you decide to sign.
Checking references and doing other research. Once you’ve called every reference provided by each company, be sure to contact the Better Business Bureau for additional information. Contacting a Minnesota probate attorney may also be a good idea.
No matter how kind or friendly any sales person or owner may seem, never make a deal regarding an estate sale based solely upon a handshake. If you do this and problems arise later, you won’t have any paperwork to support you in court. You can find a list of useful estate sale questions to ask during your interviews by reviewing this resource link.
Minnesota Attorneys
Joseph M. Flanders handles many aspects of estate sales, Wills & Trusts and probate administrations for clients in Minnesota. For information and for a free initial consultation, please contact the firm at 612-424-0398.
Thanks for posting these questions to ask an estate sales company. My mother has a lot of belongings that need to be liquidated, so these tips will help me find a good company. Getting any details from three or four companies seems like a great way to find the best quoted bid for running a sale. That will help me find the best estate sales company that will help me turn a profit from liquidating my mother’s old belongings.