How do estate sale companies work, and what do they cost?

A short note before you start

This guide is general information for the United States, not legal, tax, financial or medical advice. Commission rates and any licensing rules are set by the individual company and, in a few cases, by state law, so confirm specifics with the companies you interview and your state's licensing office.

What is an estate sale company?

An estate sale company is a business hired to sort, price, stage, advertise and sell most or all of the belongings in a home, usually after a death, a move to assisted living, or a downsizing decision. It typically runs the sale on-site over a few days, prices items individually rather than auctioning them, and takes a percentage of what sells as its fee. Families hire one instead of an auction house because it can clear a household at once, without the family sorting or pricing anything. This differs from a cleanout service, which just hauls items away, and from an auction, where bidding sets each item's price; see the comparison below.

How do estate sale companies work, step by step?

Most companies follow a similar sequence from the first call to the final check; a specific contract may add or combine steps.

1. Free walkthrough and quote. The company tours the home and explains its commission and any minimum fee.
2. Signed contract. It should spell out the commission, any flat or minimum fee, who pays for supplies and advertising, the sale dates, the payout timeline and what happens to unsold items.
3. Sorting, research and pricing. Staff sort items, set aside what the family keeps, and research fair prices, a step the American Society of Estate Liquidators' code of ethics requires members to take "reasonably necessary" steps to complete³.
4. Advertising. The company lists the sale on sites such as EstateSales.net or EstateSales.org and puts up signage near the property.
5. The sale itself. Sales commonly run Thursday or Friday through Sunday, with prices dropping as it goes; Consumer Checkbook describes liquidators cutting roughly 25% by Saturday morning, 50% by Saturday afternoon and 75% by Sunday¹.
6. Accounting and payout. The company gives an itemized list of what sold, then pays the family's share, typically within two to three weeks¹.
7. Cleanout. Unsold items go by donation, disposal or a bulk buyout, sometimes included in the commission and sometimes billed separately; get this in writing before the sale.

How much do estate sale companies charge?

Nearly every company works on commission, deducted from proceeds, so there is no upfront bill. Consumer Checkbook, a nonprofit consumer research organization, reports that "30 to 50 percent is typical," with some companies sliding the rate higher on smaller estates and lower on larger, more valuable ones¹.

Ask every company for its full fee structure in writing, including any charge for supplies, advertising, credit card processing or cleanout. A rate that looks low on the phone can cost more once add-on fees are included.

Are estate sale companies licensed or regulated?

There is no nationwide license for the industry, and most states do not regulate it as a distinct business; the ordinary requirements are a general business license, an entity registration such as an LLC, and sales tax registration⁶. A few states regulate it indirectly, through auctioneer law, when a sale's format crosses into competitive bidding.

Ask any company you interview whether it, or your sale, needs a bond, a license, or sales tax collection in your state, and check with your state's revenue or licensing office rather than assume a rule from one state applies in another.

Estate sale, auction or consignment: which fits your situation?

These three services clear out a household differently. An estate sale prices items individually and sells them on-site over a few days, suiting an ordinary household of furniture, kitchenware, tools and décor. An auction, in person or online, sells to the highest bidder and tends to bring in more for high-value pieces, such as fine art, coins or antiques. Consignment means a shop sells specific items on your behalf, off-site, over a longer period, fitting a handful of attractive pieces rather than a whole household. Some companies offer a hybrid: online bidding for higher-value items, a priced sale for the rest.

How do you choose a reputable estate sale company?

Because most states do not license or vet this industry, the vetting is yours to do. Interview more than one company rather than hiring the first one you call.

1. Ask whether the company is insured and bonded, and ask to see proof. As litigation attorney Edward Susolik told AARP, "bonding protects against theft, while insurance protects against property damage and any personal injury matters"². Ask to be listed as an additional insured, and confirm your own homeowner's policy covers a commercial sale event; some exclude business activity.
2. Get the full fee structure, including any minimum fee, supply charges and cleanout fee, in writing before you sign.
3. Ask for an itemized post-sale accounting: what sold, for how much, and when you will be paid. AARP notes this documentation is what gives you recourse if something goes wrong².
4. Call references from recent clients, and check the company's standing with the Better Business Bureau and reviews on EstateSales.net, EstateSales.org, Nextdoor and Facebook.
5. Ask whether the company belongs to a trade group with a published code of ethics, such as the American Society of Estate Liquidators or the National Association of Estate Liquidators, both of which require members to work from a written contract and disclose fees³,⁵.
6. Photograph the home's condition and valuables before the company begins, and decide upfront who has final say on discounting or pulling items from the sale.

What happens to items that do not sell?

Ask this before the sale, not after. Some companies fold a post-sale sweep into their commission; others treat cleanout as a separate add-on, priced once they see how much is left. Get the arrangement in writing in the original contract, including who chooses where unsold items go, since usable furniture, clothing and household goods can often go to a local donation center instead of the landfill.

Do you owe taxes on estate sale proceeds?

For most families selling ordinary household items, no. A sale for less than the item's original cost, or less than its date-of-death value if it came from an estate, produces no taxable gain; losses on personal-use property are not deductible, but a sale at a loss is not taxed either¹². An inherited item's basis is generally its fair market value on the date of death, usually close to the sale price for goods sold soon after¹³. If the sale runs through a payment app, it must send a Form 1099-K only once payments exceed $20,000 and 200 transactions in a year, and that form targets items "sold at a gain," not an ordinary liquidation sold below cost¹¹.

Sales tax is separate from income tax and depends on your state. Some states treat a genuinely one-time household sale as an exempt "isolated" or "casual" sale, while a sale run by a business, or one that recurs, may not qualify⁹,¹⁰. Ask the company how it handles sales tax in your state.

What should you record in a family guide?

This is the kind of information a family guide keeps in one place: the company's name and contact information, the signed contract, the itemized accounting, the payout amount and date, cleanout or donation receipts, and a note of which items the family kept rather than sold. If you are also settling an estate more broadly, see the executor checklist and settling an estate, and /your-guide/ for building one record your family can find later.

What mistakes do families commonly make?

• Hiring the first company that calls back, without comparing at least one other quote.
• Signing without a written contract, or one that leaves the commission, fees or payout date vague.
• Not confirming insurance and bonding, then having no recourse if something is damaged or missing.
• Skipping photos of the home's condition and valuables before the sale starts.
• Assuming a rule from a friend's state, such as a licensing or sales tax rule, applies in your own state.
• Not asking in advance what happens to unsold items, then being surprised by a cleanout bill.
• Forgetting to set aside sentimental or needed items before pricing begins.

When to get professional help

Hiring an estate sale company is usually a decision you can make yourself with the vetting steps above. Bring in a probate or estate attorney if heirs disagree about what should be sold, or if the estate is in formal probate and the court must approve a sale. Bring in a certified appraiser, separate from the estate sale company, for fine art, rare collectibles, firearms or anything else a general liquidator may not be equipped to value. Talk to a CPA if you are unsure whether the sale affects an estate's tax filings.