What estate sale companies charge

Most estate sale companies do not charge an upfront fee. They take a percentage of what the sale brings in. That sounds simple, and mostly it is, but two quotes with the same percentage can leave you with very different amounts.

Commission

The commission is a share of gross sales. It commonly falls somewhere between 30% and 50%, and it varies with your area, the size of the sale and how much work the home needs.

Smaller sales usually carry a higher percentage. The setup work is much the same whether the contents sell for $5,000 or $25,000, so a company needs a bigger share of a small sale to cover its time. Some use a sliding scale, where the rate drops once sales pass a certain amount.

Minimums

Many companies have a minimum. It may be a minimum expected total before they will take the job, or a minimum fee they keep no matter how the sale goes. Ask which one applies. A minimum fee on a small sale can take most of the proceeds.

Fees on top of commission

This is where quotes differ. Ask whether any of these are charged separately:

Advertising and signs
Credit card processing
Extra staff or security
Cleaning before the sale
Dumpster or haul away after the sale
Moving large items
Research on high value pieces

None of these is unreasonable on its own. The problem is finding out about them on the final statement. Ask for every possible charge to be listed in the contract.

Buyer's premium

A few companies, and most auction houses, add a percentage to the buyer's bill. It is paid by the buyer, not by you, but it can make buyers offer a little less. Ask whether one applies and who keeps it.

What happens to what does not sell

Leftover items affect what you take home. Some contracts say unsold items become the company's property. Some include a donation run. Some charge for a cleanout. Some leave everything for you to deal with. If you need the house empty for a closing, the cost of clearing it belongs in your comparison.

Comparing two quotes

Do not compare percentages. Compare what you are likely to receive. For each company, ask:

What do you expect this sale to bring in? Ask for a range, and ask how they arrived at it.
What is your commission on that amount?
What other fees will come out?
What will it cost me to get the house empty afterwards?
When will I be paid, and will the statement be itemized?

A company charging 45% that prices carefully, advertises well and draws a crowd can leave you with more than one charging 35% that does none of those things. Ask each company how they research prices and where they advertise, and ask to see a listing from a recent sale.

A caution on low estimates and high ones

Be careful with any company that promises a large total before it has looked closely at the home. An honest company gives a range and explains it. No one can guarantee what buyers will pay on the day.