Estate Sale vs Estate Buyout
Estate Liquidation in San Diego
After the loss of a loved one, so many other things must be done. One of them is deciding what you are going to do with your loved one’s property. Estate liquidation is an option that makes things much easier for people after they lose someone:
What Is Estate Liquidation?
Estate liquidation is when heirs sell their family member’s entire estate, and they may do this in one of two ways. The first is to do an estate buyout, and the other is to have an estate sale.
Option #1: The Estate Buyout
A buyout company purchases items in a person’s estate after the heirs remove the items that they would like to keep. The buyout works as a way for heirs to relieve the estate of a significant amount of property. Doing this provides the estate with an amount in cash.
Why Have an Estate Buyout?
An estate buyout is an option for those who do not have sufficient items to offer in an estate sale. A buyout is also an excellent plan to remove property quickly from a house and raise some extra money. It may be the best option if you are on a tight schedule and need to clean the house out quickly. For example, you may want to place the house on the market as soon as possible, and an estate buyout will make this possible.
What Is the Process of an Estate Buyout?
The process begins with the estate’s representative. This person is in charge of removing items from the house that the family members and other heirs would like to keep. Then, the representative will choose a buyout company. The buyout company examines all of the items and determines the price they are willing to pay.
Option #2: The Estate Sale
What Is an Estate Sale?
An estate sale is a sale that disposes of a deceased person’s possessions in the most orderly fashion possible. Therefore, it is the entire liquidation of the person’s property. Every item has a price tag and may be purchased by any of the people at the sale.
What Is the Difference between an Estate Sale and an Estate Auction?
People often use these terms interchangeably, but they are different things although they have similarities. For example, they both are a means of liquidating the entire estate of a decedent, and they are both public processes.
The auction is a very different process than the estate sale because an auction is led by an auction company. An auctioneer is at the forefront of the auction and calls out each item one at a time. The person who offers the highest bid wins and purchases the item. This does not happen in an estate sale. In an estate sale, the price of each item is known to attendees because each item has a price tag, so they do not have to bid. A buyer only needs to be the first to see the item to have the privilege of purchasing it.
Why Have an Estate Sale?
It is common for people to hold an estate sale after a family member passes away. People also hold estate sales when the homeowners need to move out of the house quickly so that they can move into a nursing home. Some people may need to move to another state or country for a new job, and others must move because of a divorce.
The estate sale is the better option if the estate has a large number of highly expensive items. A consultation with a company will be at no charge to you, and you can plan to sell everything to the company, including luxury items or even linens.
The estate sale is highly beneficial because the money you receive may be used on debts, the cost of nursing homes, funeral and burial expenses, and other miscellaneous expenses. The estate sale company takes over the entire process for you and leaves the house cleaned and ready to be placed on the market if that is your plan.
How Much Does an Estate Sale Company Charge?
An estate sale company in San Diego will not charge you a fee for its services because most work on a contingency basis. Therefore, the estate will not have to pay a fee or any upfront payments. After the sale is over, the estate company will keep the percentage that you agreed on and that may be between 30% and 40% of the proceeds from the sale.
For example, the estate sale nets $100,000. The estate sale company will keep $30,000 if you agree on a 30% fee or $40,000 if you agree on a 40% fee. Then, the family members will take $60,000 to $70,000.
What Is the Process for an Estate Sale?
The estate sale organizer enters the home to separate the items and place them into categories. Then, they can appraise the items and determine their market value. Before the scheduled date for the sale, the organizer goes through the property again to place price tags on each sale item. The organizer will take one last walk through the house to make sure that everything is right.
On the day of the sale, buyers will be allowed in on a first-come, first-served basis. They may also have buyers take a number and wait to be taken inside the house. Once inside the house, shoppers are free to roam from room to room. When they find an item that they would like to purchase, they may do so at the door.
The estate company decides beforehand how they will allow buyers to pay for their purchases. They have the option of using debit cards, credit cards, checks or cash. Allowing purchases with credit cards ensures that people can buy higher-priced items.
The estate liquidator is in charge of moving the line along and resolving any issues that may come up. In most cases, the estate liquidator will not allow family members to be present at the auction.
After the sale, the estate sale organizer decides what to do with any leftover items.
How Are Estate Sale Items Priced?
To have an idea of the price of the decedent’s belongings, you may visit Craigslist, Facebook Marketplace or eBay. By doing this, you will know what people are willing to pay for items like the ones in your family member’s home. The estate sale company also has employees with knowledge about the local market and its conditions.
If the estate sale lasts longer than one day, the estate organizer is at liberty to lower the price of an item if this encourages buyers to purchase more items.
If you do not sell all of the items at an estate sale, you can always hold another estate sale. You can also give the items to your family and friends or donate them to your local charity.
The Best Option for Estate Liquidation in San Diego
If you are considering having an estate sale San Diego, San Diego Liquidation and Estate Services is the best choice for you. Our staff has more than 40 years of combined experience in the estate sale industry, and we perform our duties with the highest integrity and ethics. Our appraiser is accredited and has the expertise to maximize your loved one’s estate. Our staff will work hard to ensure that the entire process is as painless as possible for you. Contact us today.
