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
Estate sale companies typically charge 30-40% commission on gross sales. Additional fees may apply for extra work.
Benefits and Challenges
Benefits of starting an estate sale business include flexibility in schedule and income. Challenges include gaining experience in evaluating items, empathizing with clients dealing with difficult transitions, and building a client base.
Marketing and Operations
Marketing your services and getting good reviews helps bring in business. Continually updating inventory, pricing, and marketing keeps the business profitable. Estate sales involve liquidating possessions from a home during major life transitions. As an estate sale professional, responsibilities include evaluating, pricing, and selling items. It’s essential to accurately appraise items, recognize their value, and market them effectively. Equally important is dealing sensitively with clients.
Online Estate Sales
There are two main ways to host online estate sales: auction sites like eBay or estate sale-specific platforms. These streamline organizing online sales.
In summary, while starting an estate sale business requires knowledge and guidance, with proper preparation it can be a rewarding venture.
Estate Sale Business Income
The estate sale business runs on commission from sales. Compensation derived as a percentage of total gross sales, ranging from 25 to 50 percent. If the estate is small, compensation may be based on fees for marketing, staging, cleanup, and other elements of the assignment.
The most profitable way for estate liquidation business is taking a percentage of gross sales. Packaging of items can affect the value of overall items.
Starting a real estate business needs an investment of $2,000 to $15,000 for licenses, equipment, supplies, and marketing. Entrepreneurial profits in real estate are typically through asset appreciation and rent. Competition is stiff, so choosing a specialty niche when starting is advisable, such as residential, commercial real estate, or land.