Estate sales have become increasingly popular in the past decade with Baby Boomers downsizing and the growing popularity of a “less is more” lifestyle. It truly has become a big business with hundreds of companies now specializing in the liquidation of household contents over the course of one weekend. The brevity of the sale is often a relief to the overwhelmed owner or relative. However, it is important that valuable pieces do not fall through the cracks with a dealer or picker benefiting from the mistake.

WHAT IS AN ESTATE SALE?

Frequently called a “tag sale,” an estate sale is a way to sell the contents of an individual’s home in an orderly liquidation in a relatively short amount of time. There are a variety of reasons for an estate sale to cross your path – moving, downsizing, family death, divorce, etc. The sale typically lasts two to four days with a private residence transformed into a temporary public retail setting, a pop-up space if you will. Estate sales are great for selling knick knacks, toiletries, kitchenware, and just plain old miscellaneous “stuff.” You really can sell almost everything but the kitchen sink and maybe even sometimes that. In return for the organizing, selling, and marketing, estate sale companies receive a percentage of the profits. Companies generally have a 20-25% commission on the sale of each object in addition to a flat handling fee.

DANGERS OF A QUICK SALE

Don’t get me wrong – there are many benefits to an estate sale that make them a significant part of the downsizing/estate process. Going through the belongings of a loved one can be a very emotional time and sometimes the quicker you can quite literally lighten the burden, the better. However, an estate sale is essentially a forced liquidation with a very limited amount of time to sell everything and reach the most interested buyers.

In an estate sale context, you typically can only attract those in the local market who are willing to spend their Saturday or Sunday browsing a stranger’s home. In addition, the protocol for prospective buyers is “the early bird gets the worm;” those who arrive at dawn are situated in front of the line when the house opens while the late arrivals, who may have had brunch first, will have to wait until the others leave the sale so that they may enter the residence. Unlike the environment of an auction house, where all interested buyers are competing at the same time to “win” an item through bidding (including those brunch aficionados who can leave an absentee bid the day before or participate via their smart phone), an estate sale operates on a first-come-first-serve basis. For higher quality fine art and decorative objects placed in an estate sale, you lose the opportunity to elevate the realized value of an item by having competing interested buyers. Another option is to consign pieces at a vintage shop or antiques gallery which allows more time to wait for the right buyer to pay the highest retail price.

Naturally, it is in the best interest of the estate sale companies to achieve the highest amount for every item right? Well, most of the time… Sometimes it is better for a company to move efficiently, and there is that ever-present time restraint of a weekend. In addition, estate sales often have the connotation of being a bargain for shoppers which can create a loyal following of buyers that some companies don’t want to alienate. In addition, estate sale companies will significantly lower the prices of all items still unsold on the final day in order to move the most product and make the most profit. Anything remaining is typically either donated or disposed on the last day of the sale.

HOW TO CHOOSE AND NEGOTIATE WITH THE RIGHT ESTATE SALE COMPANY

Choosing the right estate sale company requires some proactive work by the client in the beginning. Some smart moves include: obtaining referrals from previous clients, visiting one of the company’s sales to see how they truly operate, reading the contract carefully so that you understand all fees involved like commission rates, and making certain that a written agreement is signed on the dotted line by both parties.

Some questions to ask when deciding which estate sale company is the best option for you are the following: Do they know the resale market? Are they on top of trends in the antique, collectibles, and interior design world? What is their experience in valuing household contents? How do they advertise and market their sales? What happens to items that remain unsold?

Once you have decided which estate sale company you wish to work with, it is extremely important to maintain a clear line of communication. Along with making sure that all legal details have been taken care of before beginning the sale, let the company know what items you plan to keep, gift, or sell in a different context. Sometimes leftover items may be placed in another estate sale. They may also recommend dealers who will “buy out” the unsold contents. Be wary of an estate sale company that is willing to buy the remaining items themselves since now they have a conflicted interest in getting the lowest value.

CALL IN AN APPRAISER BEFORE THE SALE

Do you really want great uncle’s early 19th century American folk art painting of the farm to go unnoticed? Can’t tell the difference between good, not so great, and extremely valuable? Calling in a generalist appraiser for a walkthrough can be an effective way to determine which items could achieve a higher value outside of an estate sale setting. For pieces you believe to be more expensive and even the surprising items that you never noticed or thought were ugly, it is worth your while to have an appraiser cherry pick the contents of a home and then have further research done. Alternatively, in the role of an art consultant, recommendations can be made for the best possible venues for selling higher-end antiques and objects. While there is a tendency for family members to overestimate the value of certain objects due to sentimentality or how grandma told them never to sit on that Victorian settee (see article Brown Furniture Blues), a professional opinion by an appraiser can help explain current market values both good and bad.

Selecting a trustworthy estate sale company and working with a qualified appraiser is a great combination to successfully sell the entire contents of a home.  

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About the Author: Courtney Ahlstrom Christy is the Principal Appraiser of Ahlstrom Appraisals LLC. She has worked with auction houses, museums, and galleries - all of which have provided unique opportunities to closely examine works ranging from the antique to the contemporary. Her background in the field of decorative arts includes silver, ceramics, glass, and furniture. Courtney also has extensive experience in fine art with a special interest American and European works from the late 19th to early 20th century.

© Courtney Ahlstrom Christy 2016

Ahlstrom Appraisals | Personal Property Appraisals and Art Consultations | Serving Atlanta & Southeast | Fine Art, Antiques & Vintage