How Do Estate Sales Make Money?

Estate Sale Business

Estate sale companies charge a commission, typically 30 to 40 percent of gross sales. Additional fees apply for extra work. Responsibilities include evaluating, pricing, and selling items.

When it comes to estate sales, many people wonder how much money estate sale companies make. Below are some things to consider when trying to figure out how to make money from estate sales.

Can you negotiate at estate sales? Negotiating at estate sales does happen and can help you get more knocked off the price, but there are a few things to consider first.

Process of an Estate Sale

An estate sale involves the sale of the personal property of a household. Items are sold to the public with the twin goals of selling household contents in as short a time as possible and emptying the house by the end of the sale. Typically occur over the course of 2-3 days.

Estate Sale Profitability

Most profitable way for estate liquidation business is taking percentage of gross sales. You can charge higher percentage if providing full disposal and cleaning services. You must make the entire estate sale enticing and presentable by selling clean items. This gets buyers more easily than good but unclean items. Packaging of items can affect value of overall items.

Starting an Estate Sale Business

To start an estate sale business: Draw up a business plan, gather connections in real estate and home contracting for referrals, form a legal entity, register for taxes, open a business bank account and credit card, set up business accounting, get business insurance, invest between $2,000-$15,000 for equipment, branding, advertising and marketing.

Real Estate Business Start

Starting a real estate business needs $2,000 to $10,000 for licenses, equipment, supplies, and marketing. With wise asset management and fundamental business knowledge entrepreneurs can launch own real estate company. Appreciation most common way to be profitable. Values of assets like properties and land can increase over time. Profit obtained by selling asset after increase in value. Also generated through rent. Competition hard so choose a specialty niche when starting. Consider residential, commercial real estate or land.

Online Estate Sales

Two main ways host online estate sales: auction sites like eBay, or estate sale-specific platforms. These streamline organizing online sales. In summary, while an estate sale business requires knowledge and guidance, with preparation it can be rewarding.

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