Let's have a look at "percentages" and how much you should consider them when you are considering potential estate auction company hires.
Using basic math, you may thing a smaller percentage adds up to more money for you. But, the exactly the opposite is more possible, if you are not keeping in mind the entire company.
Many people in the estate liquidation business expect you will judge the competitors only based on percentage of sale. This gives them the chance to bottom out their percentage and seal the deal by taking away your business. But how does this work out for the estate? Usually, the answer is not very well.
The average percentage at estate sale auction liquidations is in the rage of 25 to 35 percent of gross receipts. However, the exact amount must also reflect several factors which can raise or lower the amount.
It is necessary to examine the estate and make an educated guess as to how much work it will take to set everything up, price items, and get the site organized. For a large estate, this part of the job can take several weeks. In some cases, such as when a family has been in a home for generations, it can take even longer.
The value of estate property is another factor. Some estates contain large amounts of antiques and other valuable items. Others are crammed to the rafters with small but not very valuable possessions. And others still have no household items of any substantial value at all, just the usual assortment of furniture and personal effects. Estate specialists usually hire a certified appraiser who examines and researches the value of items going up for sale. After that, an educated guess of the total value of the estate can be made.
The percentage is based on the total value of all estate items. The higher the estimated sales value is, the lower the sale percentage should be. Similarly, a low valued potential sale commands a higher percentage. In total, a combination of preparatory work and estimated total value of the property sets the percentage rate to be charged.
Now that we have covered percentages, the next step is for you to learn more about the company. In the end, your decision comes from who you trust most and who you feel will be most competent at earning top money managing an estate sale providing a win-win for everyone involved.
To find out how Peachtree & Bennett can help you on decisions regarding an estate sale, contact our office today.