MORE OF LESS DOES NOT EQUAL MORE
Hiring a company that offers you a lower rate does not mean that you will make more money. More of less does not equal more. An experienced, professional, and effective estate sale company will always yield higher results. Less of more is more.
ESTATE SALE COMPANY RATES AND COMMISSION
Estate Sale companies structure their fees based on a percentage of the sale. On average the range is between 30% - 60%. Here in 417 land, the average commission rate is between 35% - 40%. Keep in mind that this average percentage range reflects an average liquidation scenario. There are in fact situations that necessitate a higher rate such as extreme hoarding or limited timing.
Most reputable companies require a commission minimum. This minimum is usually to ensure that the labor expended for a given sale is covered. An appropriate minimum range for the Springfield area is between $2000 - $3000.
ASSOCIATED FEES OUTSIDE OF THE COMMISSION RATE
Fees outside of the commission rate is another thing to consider. You can expect to be charged fees associated with advertising and trash. Most local companies charge an average set rate of $85 for advertising your sale. Trash fees are not as straight forward and vary dependent upon the situation and believe you me, the trash situation can vary to a significant degree from house to house. Some estate sale companies in Springfield allow for a certain number of bags to be included in their rate and then charge a per bag fee for any bags beyond their allowance. (example: company Z allows for 2 bags of trash per room and then charges $5/bag per room for anything beyond). Time is money and any time spent dealing with trash is not productive to the bottom line.
Hoarding situations may require a dumpster and this fee is usually an up-front cost for the homeowner. In larger markets with much larger estate sale companies, the estate sale company may front the cost and then subtract the amount from the clients proceeds. However, in the smaller Springfield market most estate sale companies are small businesses that cannot afford to assume a loss when there are so many variables at stake.
WHAT WILL MY CHECK LOOK LIKE?
Here is an example of what an invoice may look like for a $10,000 estate sale in this area:
Net Proceeds: $10,000
Estate Sale Company Rate @ 35%: - $3500
Clients Net Proceeds: $6500
Advertising Fee: - $85
6 Bags of Trash @ $5/bag - $35
Clients final net proceeds and check cut for: $6380
Most estate sale companies in Springfield are in the same ballpark when it comes to rates. However the service and final sale production vary significantly. There is a fine line between how QUICKLY an estate sale is set up and how WELL an estate sale is set up. Your profit potential truly hangs in this balance.
Shopping for the lowest rate will not ensure that you get maximum profit either. Companies that are passionate about what they do and show concern for your needs, goals, and bottom line are always going to exceed over companies just looking to get the sale. You want to ensure that you're hiring a company whose services and final product stand out above the others, a company that has mastered the balance.