To start an estate sale business, follow these steps:
- Draw up a business plan
- Gather connections for referrals
- Form a legal entity
- Register for taxes
- Open accounts
- Set up accounting
- Get insurance
- Invest in equipment and marketing
- Companies typically charge a sales commission of 30-40%, with benefits including flexibility and challenges in experience and building a client base.
Hosting Online Estate Sales
There are two main ways to host online estate sales: auction sites or estate sale platforms. These methods streamline organizing and can be rewarding with proper preparation.
Revenue Generation in Estate Sales
The estate sale business primarily runs on commission, typically ranging from 30 to 40 percent of gross sales. Compensation can also be derived as a percentage of total gross sales and ranges from 25 to 50 percent, based on the size and complexity of the estate. Factors such as marketing, staging, and cleanup are taken into consideration in determining fees.
General Real Estate Business Startup
Starting a real estate business requires careful planning and financial investment. Entrepreneurs need to allocate funds for licenses, equipment, supplies, and marketing, typically ranging from $2,000 to $10,000. Building a profitable real estate business involves wise asset management, understanding appreciating assets, and choosing a niche specialty in the competitive industry.