If the great “stuff” transfer is happening to you, and you’ve simply got to get rid of it all, here’s a step-by-step guide to executing a profitable estate sale. Organization, pricing right so the items will sell in a reasonable time, marketing to the right people and minimizing waste are key to making the most money possible.
Don’t just toss it — create an inventory first
You never know what people are going to be interested in buying — one person’s trash is another’s treasure. Using a coding system or spreadsheet (or both), begin by sorting furniture, artwork and decor, kitchenware, collectibles, toys, books, craft supplies, musical instruments, tools and appliances for inside and outside, jewelry, electronics, cables and more. If you uncover something hazardous or that is legitimate garbage, go ahead and dispose of it properly.
On the topic of cables, one of my students recently sold a box of totally random cables (inherited from her dad) for $47!
Bring in the pros when it makes sense
Estate sale companies are going to take their cut; between 30 and 50 per cent. As they know what they’re doing when it comes to pricing, timing, valuing and marketing, and they have a pre-existing network of buyers, you can sometimes make more money overall despite their fees. They also know how to protect your stuff from “sticky fingers” that may show up in a busy crowd with the intention of theft. They are particularly helpful with specialty items like antiques, cars and collectibles, and when you are on a tight timeline — maybe you need to get the house listed for sale promptly. Be sure your contract with them clearly outlines their cut, and read the fine print.
If you can’t fathom paying this level of commission to an estate sale company, roll up your sleeves. The do-it-yourself approach is 100 per cent doable, but you’ll need to do a lot of research to price things right, get the word out about the sale and handle the folks that come through.
Even if you get help with the sale, you’ll still want to research pricing
Mispricing is a costly mistake — if it’s priced too high, it won’t sell; too low, and you’ll forgo profits. The pricing needs to be fair but enticing so the items move quickly.
When I assisted my dad with his downsize, I compared listings on eBay, Facebook Marketplace, Kijiji, local estate sale listings, his local antique shop (for a few specific items he had) and I also went to a handful of vintage and thrift stores nearby. Second-hand anything will likely sell for below 40 to 50 per cent of retail, and this will depend on the condition and specific nuances with whatever you’re getting rid of. My dad’s car, which had been purchased new only two years prior, was sold within a week for 45 per cent less than what he paid.
On the weekend of the sale, open your doors early and use a timed discount structure. Day 1 (Friday), you’re selling at full listed price (make the labels super clear). On Day 2 (Saturday), lower the prices by say 25 per cent. If you’re running a third day (Sunday), reduce to 50 per cent and so on. If someone wants to negotiate or bundle things together, go for it, especially for tricky items that don’t have many buyers.
Make the space attractive
Sales go better when items are clean and displayed attractively. The sale’s space itself also needs to be as clean as possible. If you’ve got the energy, scrub things yourself. If you need help, hire a cleaner. If there’s an incredible amount of clutter, you may need to hire a decluttering expert to organize the space and assist with grouping the categories of items.
Set up tables for viewing items. Use a safe for higher-value items, or just keep your eye on them to prevent theft (as you can tell, this is an issue with estate sales). Ensure there is space for a buyer to properly view things. Because most people don’t carry cash anymore, I recommend having some kind of electronic point of sale or the ability to accept e-transfers. Don’t do this sale solo. You’ll need help from a sibling or a friend.
Ensure personal items like prescriptions or sensitive documents are removed prior to the sale and use very bright, bold labels for the price. If something is “or best offer,” put that note on the label.
Aggressively advertise and get the word out with friends
The reason so many people hire estate companies to help is because they use professional-level advertising, which dramatically increases profits.
But you can do this yourself this, too, through local buy/sell groups, community newsletters, ads in the paper and online, bulletin boards, through Facebook Marketplace and Kijiji, etc. EstateSales.net is a popular site for serious buyers in Canada. Post big, bold, bright signs at major intersections with arrows. If you advertise online, use beautiful photos of what you’re selling, ones that aren’t blurry!
Sometimes things just don’t sell, and you’re out of time. It happened to me and my dad, too. You can donate items (nothing broken though), drop them off at an auction house, or see if a consignment store will take them. The goal is to try to avoid sending perfectly useful things to the landfill if someone else could use them. You might even get a tax receipt if it’s that valuable. The next question for you to think about is how to use these proceeds wisely, and hopefully not on more stuff your own kids won’t want or need.
