HOW TO PLAN AN “ESTATE SALE”

PLANNING AN ESTATE SALE

 As a Certified Probate Real Estate Specialist (CPRES) I frequently become involved with families who just have no idea of what to do or how involved it is to liquidate the personal property of their recently departed loved one.  In my last article, I took some time to explain what an Estate Sale actually is and how it is different from a Yard Sale or Garage Sale.  I went into some detail as to why a third party may be conducting the sale and perhaps most importantly I shared some insight as to how the family may be feeling while they are selling off the personal treasures of a loved one who has recently passed.

In this article I will share some insight on what actually goes into planning a successful Estate Sale and how to choose a third party to help, if that’s what you want to do.  First let’s take a look at the major tasks involved with any successful Estate Sale.

First things first:  you need to inventory every single item in the house.  To do it right, be specific and exact.  Don’t say something like, “Drawer full of silverware”; rather, count it out and say something like “Silverware, 5 piece Setting- Service for 8 with 6 Serving Pieces”.  Of course if there is a piece or two missing – identify that now.   Also, when you find the fork that went down the garbage disposal and it’s been mangled – identify that at this point.  It is much easier to set a realistic price for an item when you know exactly what it is you have.

INVENTORY

While taking inventory, it is advisable to take digital photos of each item as well.  This will help in several ways.  First in the marketing of an item – a good picture will really help bring people in to the sale.  Secondly, it will help you identify the item if you are uncertain what the value is.  If you have a good picture, you may be able to send it to a cousin or someone else who can do some research as to the value.  Even better, if you have a full catalog of everything in the home, and you have it published in an online image library, like Picasa, family members can look things over and make a special request.  Perhaps the strongest reason to photograph everything is just to cover your own tracks – no one wants to me accused of any sort of mischief by the family as the dust settles; and believe me the loss of a loved one can bring out the worst in people and families and a lot of ugliness can surface if things are not handled correctly.

By taking the time to thoroughly inventory everything in the home and documenting it with pictures and posting them to the web, it will be easier for you to determine what should be included in the Estate Sale.  Now, as the Executor of the estate, you can make a clear headed determination of who will get what.  The best you can, you want to avoid the first family members who come through start laying claim to specific items in the house which may leave the last one there with nothing but picked over leftovers… an ingredient in recipe for trouble.

REPAIRS

As you go through a home filled with the personal items of your loved one, it is not uncommon to find items that need some repair.  In many cases, the deceased has been sick for some time and just has not been able to keep up with maintenance – this includes the real estate as well as personal effects. 

Some items, especially if there are collections of some sort, may be best used as spare parts.  Never be quick to throw something out, just because you would not use it in your own home.  Everything has value, to someone.

If at all possible, take some time to clean things up and fix what needs fixing.  Some items can just be slightly modified to find a new use or new look.  “‘Shabby Chic” is a popular decorating style today and many of these items were once considered junk by someone else.  So pay attention to what you have and how it can best be marketed.

PRICING

Once you determine what items to sell and what to keep in the family, you’ll have to determine a fair market value of each.  There are two schools of thought – blow everything out with low prices so there is nothing left over or to price higher hoping to maximize the return.  Of course there are flaws with both approaches. 

If the Estate Sale has rock-bottom prices the return on the time will be minimal.  Remember, as an Executor or Administrator of an estate, you have a fiduciary responsibility to the Estate and all of the heirs to bring in as much cash as possible – not to make your life easier.  If items are over-priced, they simply will not sell. 

If there are specialized items, you may be best served by seeking out people who have expertise in that particular field.  They may buy from you directly or at least they can help determine a fair market price based on the condition of the item.  Expect to pay for these services – especially if you want them to provide a written appraisal for you.

Another method of pricing is to search the on-line auction sites like eBay to see what the demand has been for similarly priced items and collections.  Perhaps more can be earned by selling them on-line.  Also consider that a collection broken up may bring in more money than sold as a complete collection.  There are many variables to pricing but at the end of the day it comes down to supply and demand and the true value of an item is whatever someone is willing to pay you for it.

STAGING

The way items are displayed for sale is an important aspect to any sale.  Just think about how the exact same item may be displayed in a high-end department store and in a discount store…One may compel you to buy based on a desire you did not know you had before you got to the store, while the other is there if you know what you are looking for.

Each room should be staged showcasing items appropriate for that room.  In other words, the bedroom is not the place to be showcasing pots and pans any more than the kitchen is not the likely place to try and sell a needlepoint collection.

Spend some time and do it right.  If you don’t have a keen decorating sense, then ask for some help – someone in the family should be able to take charge and deal with this.  Remember, the dearly departed may not have had that sense of décor either.  They may have been trapped in the 70’s.  So just because a particular item was displayed one way, don’t think that is the only way to display it for sale.

If items are displayed outside, it is best to have a small sample of each category of item visible from the street so the drive-byes that your signs attract will get the feeling there is something worth exploring.

Small valuable items, like jewelry, should be displayed in cases or behind a counter where help is required to show the piece to a potential buyer.  This leads us into the next topic…

SECURITY

Safeguarding the items for sale is just as important as pricing.  If at all possible, you want to have at least one person in each area of the home where items are displayed for sale.  This is as much for good customer service as it is security.  Certainly, wherever there are small valuable items displayed, there should always be eyes on them.

If possible, consider controlling access to the home with one point of access in and a second exit.  Drawing the crowd in through the garage is often a good place to bring them in off the street allowing you to showcase various categories of items for sale and guiding them into the home.  Having the checkout near the front door will allow your shoppers to cruise freely throughout the home, gathering what they want to purchase and paying for it all at once – as they exit.

Today, wireless camera systems are so inexpensive and easy to install.  If you can, invest in a few portable cameras strategically located, and have the system monitored on a laptop.  Having signs posted that the shoppers are being watched will certainly deter many shoplifters.  It really doesn’t matter how nice the neighborhood is – or not – thieves look for opportunity everywhere, so be careful.

MARKETING

There are many ways to market the Estate Sale.  If you have taken good digital photos and published them to the web, it is easy to get people to look at your items.  Create a link to the library and publish it on individual adds for individual items on Craigslist (perhaps the largest and best
FREE online classified ad resource).  In each of your Craigslist ads, have the sale details (date, time, link to a map)along with the link to the photo library – with prices.

Consider placing ads on specialty websites to promote a special collection or piece of art.  Many sites allow for free classifieds while others may charge a small price – but who cares if you can reach a targeted audience that is interested in your valuable items – then I am sure it will be worth it.

Make certain that you have put some thought into the details of what your sale terms will be.  Will you allow early-birds, if they are willing to pay your price?  Will you ship your items if some long-distance buyer spots an item they absolutely must have?  Are you taking cash only or will you accept credit cards?  So many things to consider – but consider them all…and then stick to it.  Perhaps you could put all of your terms on a single sheet of paper and post it at the entrance and exit of the sale as well as in each room (as well as in your online ads).  This way no one feels cheated and you don’t have to spend energy dealing with some petty issue one member of your sales team said one thing and another said something different.  Everyone needs to be on the same wavelength.

You’ll also want to put up a whole bunch of signs.  Go out in all directions at least two major intersections away, and then plot out sign placement that will drive traffic to your sale location.  Make it easy for a random driver to find you.  Use a consistent color sign; perhaps a unique color combination for the arrows.  Doesn’t really matter what you do, as long as it’s consistent.  Last thing you want to do is have someone follow your signs and get sidetracked to the sale on the next block.

There are many ways to market an estate sale.  If you are stumped after these suggestions, drop me an email and I’ll be more than happy to help you figure out more.

WHO

The next question is who is going to do all this?  It is certainly something you can do on your own.  You can tell it will take some time, and depending on the value of the personal belongings in the estate, it can be very lucrative for the estate.

In my third and final article on the topic of Estate Sales, I’ll take a look at what is involved in hiring a third party to help you with your Estate Sale.