The percentage is the driving force behind a decision when hiring a company to sell your estate. Those who want to auction an estate will require the sale to make a decent profit.
Common sense and a basic mathematical ability tell you that a company who charges a lower percentage enables you to maximize profit. However, this is only true if you look at the company from every angle.
In general, estate liquidators compare the competition to work out their commission. Auction houses charging low fees and commission rates tend to attract business as the estate sale is more profitable. In essence, this makes sound financial sense for the seller.
Estate liquidators consider several factors before setting an exact percentage, however, the percentage generally ranges from 25%-35% of the gross sale.
Preparing to Auction an Estate
The sale cannot go ahead before the groundwork is done. Much prep-work is carried out beforehand. In the first instance, goods must be valued and priced and this alone can take weeks. Long-standing family homes, crammed with belongings will take a considerable time to value.
Valuing the Estate Prior to Auction
Every sale is different. Some estates are laden with collectibles and antiques, whereas a percentage is filled with small but collectible items. Some homes are filled with household items of little value, whereas other houses are crammed with high value goods. A certified appraiser employed by the estate liquidators will examine all big ticket items to determine their value. From then on, an assessment of the total value of the estate is given.
The estate liquidator will determine the percentage due on the overall value of the entire estate. A low gross auction sale demands a higher sales fee, whereas a high gross sale commands lower fees and commission. The overall value of the sale and the prep work are the deciding factors when calculating the percentage charged.
After learning how to calculate commission fees, you should learn more about the company you intend to hire. (Learn more about Lott’s Treasures here.) Take all things into consideration; hire a reputable estate sales company, a long-standing auction house who will help you to realize a good profit from the estate sale. If the majority of the goods fetches above and beyond the asking price, you will make a tidy sum of money, a high gross sale that pleases all parties involved.
An estate sale or auction should ensure client and estate liquidator come out on top, so take note of these pointers before you proceed.