What is An Estate Sale & How Do They Work?
Whether it’s your first time attending or arranging, you may find yourself wondering what exactly is an estate sale? Are they different from a typical garage or yard sale? And if so, how do they work? No matter your situation, we’re here to answer all of your questions so that you may go into the process a bit more prepared and in the know.
What is an Estate?
Before diving right into the specifics of estate sales, we thought it might first be prudent to define what exactly an estate is.
To summarize, an estate is the collective sum of an individual’s net worth, including land and real estate, personal possessions, investments, cash, and “any other assets that the individual owns or has a controlling interest in.”
What is an Estate Sale?
The value of an individual’s estate typically becomes relevant in the event of one of the 4 D’s: debt, divorce, downsizing, and in many cases, death. In such an occurrence, the beneficiaries of the estate, often the family of the deceased, may find themselves needing to quickly liquidate the entirety of the estate.
One common way to do so is to hold an estate sale, also known as a tag sale, to sell off any tangible assets the family may not want. Over the course of one or two weekends, the public is invited into the home to purchase items for sale with the goal of selling everything quickly and for the most money possible.
How are Estate Sales Different Than Garage Sales?
While there are many similarities between the two, there are some pretty big differences that deserve to be called out.
For starters, estate sales occur because someone can no longer keep their stuff whereas with garage sales, the owners simply may not want their stuff as hinted at above (see the 4D’s).
As such, estate sales are generally much more involved than your average garage sale, requiring significantly more planning, resources, and overall effort; it’s commonplace for beneficiaries of the estate to hire a real estate agent and/or estate sale company to facilitate the process and ensure everything goes smoothly.
Furthermore, because estate sales involve selling the entirety of a person’s possessions, it’s not unusual to find high-end items such as fine jewelry, furniture, art, various antiques, and other vintage finds you likely wouldn’t be able to find anywhere else but an estate sale.
As a result, many people are habitual estate-sale-goers, frequenting online estate sale sites in search of a unique piece or good deal. If the beneficiaries of the estate have opted to enlist the help of a real estate agent and/or estate sale company, the person(s) in charge will ensure professional photos are taken of sale items and advertised online, on these estate sale sites, to create sufficient buzz for the sale.
How Exactly Do Estate Sales Work?
Estate sales work either on a first-come, first-serve basis or via the number system, like at the DMV.
First-come, first-serve is just as it sounds; those who arrive first wait in line and get first pick. The number system is just as simple, but rather than waiting in line, buyers can arrive prior to the sale, usually at a designated time a few hours before the event, to receive their number. This allows people to grab breakfast or hit other sales while saving their place in line. However, if someone’s number is up and they are not yet in line, they must go to the end of the line when they return as their number is no longer valid.
While both methods are used, simply forming a line is usually more common. As such, if you’re planning on attending an estate sale, it’s best to get there as early as possible to secure a good spot in line.
Estate Sale Etiquette
During an estate sale, buyers may pick up items they wish to purchase and walk around with them, or if the items are too large/heavy, like a table or bed frame, buyers may place a “sold” tag on the item – hence the nickname “tag sale!”
While there is absolutely nothing wrong with placing tags on multiple items, buyers are encouraged only to place tags on items they truly wish to purchase so as to not cost the seller a sale or another potential buyer the opportunity. It may sound strict, but most shoppers understand the rules and are respectful of estate sale etiquette.
Deals, Deals, Deals!
Oftentimes, to sell items more quickly, the realtor and/or estate sale company in charge of the sale will allow for bids to be placed on all or some of the items. If a buyer doesn’t want to pay the full marked price, they may place a bid, and at the end of the sale, if the item has not gone for ticket price, it will be sold to the highest bidder.
Additionally, to further promote the quick sale of items, many estate sales will offer discounts after the opening day of the sale. While discounts vary, generally, it’s full price on the first day, 25% off the second, and 50% off the third. Discounts are usually not advertised, but many frequent estate-sale-goers expect them all the same.
After the Dust has Settled
After the last day of the sale, the person(s) facilitating the event will arrange for any remaining items or junk to be removed from the property.
For those that find themselves arranging rather than attending the estate sale, if the home is being sold as a part of the estate and has already gone under contract, all that’s left to do at this point is sign any paperwork, receive your portion of the funds, and be on your way. If the home has yet to sell, you may still return back home, but you’ll need to stay in contact with your agent regarding future offers and any final paperwork.
No matter your need for the info, we hope you’ve found everything useful. If you still have some questions or find yourself in need of a professional to help facilitate your estate sale in the Northern Virginia/Metro DC area, please don’t hesitate to contact us at 703-651-5655.
