The Pros and Cons of Estate Sales

Estate sales can be an efficient way to convert an entire household’s contents into cash within days, especially when time and labor are scarce. Typical professional commissions run ~30–50% of gross receipts, and industry surveys suggest the “average” sale grosses around the high-teens, leaving net proceeds around the low-teens before clean-out or disposal costs. (Schwab Brokerage)

If you have limited “high-demand” categories (jewelry, gold/silver, mid-century furniture, tools, designer goods, coins) and a house full of lower-demand items (formal china, large upholstered furniture, mass-produced collectibles), total proceeds may disappoint relative to expectations. In such cases, a hybrid approach—sell the obviously valuable items through the right channels, then donate the rest—often optimizes both net dollars and timeline, provided you can itemize deductions and document fair-market value correctly. (AARP)

1) What an Estate Sale Is (and Isn’t)

A traditional, on-site estate sale aims to sell most personal property in a short window (typically 1–3 days), with the company handling pricing, staging, marketing, transactions, and often the post-sale haul-away—usually for a percentage commission. Published ranges cluster around ~35–40% as “typical,” with a wider band of ~30–50% depending on workload, value, condition, and whether post-sale clean-out is included. (Schwab Brokerage)

What to expect financially. Recent summaries citing EstateSales.net surveys peg average gross receipts around ~$18k, which (after a ~35% commission) yields net to the estate just under ~$12k, before any extra fees (e.g., dumpsters, donation pickups). These are medians/means across many sales—your results depend heavily on mix and market. (SmartAsset)

2) Items That Sell Well vs. Items That Don’t

Stronger demand (typical estate-sale winners)

• Fine jewelry, gold/silver, coins

• Mid-century modern and newer, quality furniture (clean, on-trend)

• Tools, lawn & garden, outdoor planters

• Designer apparel & bags, vintage clothing in good condition

• Artwork, rugs, mirrors, lamps (quality matters)

• Holiday décor (notably vintage Christmas), kitchen/cookware with brand appeal

  These categories are consistently flagged by professionals as strong sellers that draw traffic and pay quickly. (Veranda)

  
  

Weaker demand (harder sells)

• Large, older upholstered furniture (’70s–2000s styles; bulky pieces)

• Formal china sets and crystal (lifestyle shift toward casual dining)

• Silver-plated flatware (low resale value vs. sterling; upkeep)

• Mass-produced figurines & “made-to-collect” items (cooling markets)

• China cabinets and wall-to-wall “big brown” case goods

  Professionals and mainstream consumer outlets report these categories moving slowly and at low prices relative to owner expectations. (AARP)

  
  

Price realism. Even where there’s demand, estate companies observed a downshift versus a decade ago—e.g., full china sets that might have brought $800 now selling closer to ~$200, and vases ~$60 because buyers can substitute new décor cheaply. Expect aggressive markdowns late in the sale (often “half-price last hours”) to clear inventory. (AARP)

3) Financial Returns You Can Reasonably Expect

Benchmarks

• Gross receipts: Industry surveys and national explainers frequently cite ~$18k average gross (remember: wide variance). (SmartAsset)

• Commission: ~30–50% typical; ~35–40% common. (Schwab Brokerage)

• Net before extras: Using $18k × (1 – 35%) ≈ $11.7k; subtract any add-on fees (dumpsters, donation pickup) if not included. (SmartAsset)

What drives results up or down

• Item mix & quality (high-value smalls and design-forward furniture push up results). (Veranda)

• Local demand & marketing (established companies bring bigger buyer lists). (Schwab Brokerage)

• Condition & cleanliness (buyers discount for odor, heavy wear, pet damage).

• Timeline pressure (short deadlines increase markdowns on Day 2–3). (AARP)

  
  

4) Pros & Cons of a Professionally Run Estate Sale

Pros

• Speed + labor offload. A team handles sorting, pricing, staging, transactions, crowd control, and often haul-away/cleanup. (Schwab Brokerage)

• Category expertise. Pros are better at spotting “sleepers,” pricing with confidence, and attracting serious buyers. (AARP)

• Marketing reach. Established firms maintain email lists, platform listings, and signage strategies that boost turnout. (Schwab Brokerage)

Cons

• Commission drag. 30–50% off the top, with potential add-on fees. On modest inventories, fees can outsize the benefit. (National Estate Sale Association)

• Market reality. If your inventory is heavy in low-demand categories (china, dated furniture), gross may underwhelm. (AARP)

• Not everything sells. Expect leftovers; many companies do half-price final hours and still leave items for donation/disposal. (AARP)

  
  

5) Should You Cherry-Pick Valuables to Sell Yourself, Then Donate the Rest?

Potential Benefits

• Higher net on select items. Selling jewelry, coins, gold/silver, designer handbags, or sought-after MCM pieces via the right specialist (jeweler, coin shop, reputable online marketplaces, auction) may beat general estate-sale pricing after commission. (Professionals price well, but you avoid the 30–50% cut on these specific items.) (National Estate Sale Association)

• Tax deduction on donations. If you itemize deductions, donating the balance to qualified charities can yield a deduction at fair market value (FMV)—the price a willing buyer would pay. Documentation rules are strict (receipts; Form 8283 over $500; qualified appraisal over $5,000). (IRS)

• Faster house-prep. Selling a handful of valuables and calling a charity truck can clear the property on a predictable timetable.

  
  

Potential Drawbacks

• You must truly itemize. If you take the standard deduction, you generally cannot claim a separate deduction for donated goods—so the “tax value” may be zero. (Bankrate)

• Valuation and compliance burden. FMV must be supportable (price guides, comps, appraisals where required). Poor documentation risks disallowance. (IRS)

• Opportunity cost. Specialists take time to vet and list items; while you avoid estate-sale commissions on those pieces, you assume the work and risk (no-shows, returns, authentication questions).

  
  

When the hybrid strategy shines.

• Your home’s contents skew toward a few clearly valuable categories (e.g., gold jewelry, coins, high-end designer pieces) plus lots of low-demand housewares (china, bulky furniture).

• You or your representative can quickly route valuables to the right specialty buyers and you can itemize the rest as charitable donations with proper documentation. (AARP)

  
  

6) What About Donating (or Disposing of) Everything?

Pros

• Speed & simplicity. One or two pickup appointments can empty a house quickly, minimizing carrying costs and letting real-estate timelines proceed.

• Potential tax deduction (if you itemize). FMV for non-cash donations to qualified charities is deductible; follow IRS rules for receipts, Form 8283 thresholds, and appraisals for higher-value donations. (IRS)

• Mission alignment. Many families prefer the social benefit (charity) over the hassle of retailing belongings.

Cons

• Cash proceeds likely lower (or zero). Even with a deduction, after considering your tax bracket and whether you itemize, the real-world benefit may trail a well-executed sale. (Bankrate)

• Quality standards. Charities cannot accept unusable items; expect some landfill fees for damaged goods (“you can’t donate your trash”). (Kiplinger)

Good fit: tight timelines, limited high-value items, or when the household primarily contains categories with weak market demand (and you don’t want to run a sale).

7) DIY Estate Sale: Is It Worth It?

Advantages

• No commission. You keep gross proceeds if you do all labor, pricing, and merchandising.

• Control over timing and markdowns.

Risks & Hidden Costs

• Pricing & marketing expertise. Pros often price higher (and sell at those prices) because buyers expect to pay more at an estate sale vs. a yard sale, and professionals recognize hidden value. DIY sales commonly underprice valuables and overprice commodities. (AARP)

• Time and labor. Sorting, staging, pricing, credit-card handling, crowd management, loss-prevention, and post-sale clean-out are significant undertakings.

• Lower turnout. Without a company’s buyer list and platform listings, foot traffic (and prices) may be lower. (Schwab Brokerage)

DIY tends to work best for smaller estates with simple inventories and when you already have buyers (e.g., tools to a contractor community).

8) Putting It Together: Choosing the Right Path

If you have many high-demand categories (jewelry, coins, quality/modern furnishings, tools, designer goods) and moderate time:

• Hire a reputable estate-sale company. Push for transparent commissions, written scope (what’s included post-sale), and marketing plan. Ask about add-on fees (dumpster, donation, broom-sweep). (National Estate Sale Association)

If you have a handful of clear valuables plus a house full of low-demand goods:

• Hybrid. Sell valuables in specialty channels, then donate the remainder (ensure you can itemize and follow IRS documentation). (IRS)

If time is paramount and the inventory is low-value or cumbersome:

• Donate + dispose. Prioritize speed and property readiness; document donations carefully in case itemization applies. (IRS)

  
  

9) Practical Tips & Red Flags

• Commission clarity. Get a written contract stating commission %, what services are included (pricing, credit cards, staffing, advertising, security, post-sale clean-out), and who pays disposal fees. Industry ranges: ~30–50%; “house in poor condition” can push toward the higher end. (National Estate Sale Association)

• Preview list. Have the company flag any likely high-value items; consider whether any should go to a specialist (e.g., coins/jewelry) before the sale. (AARP)

• Expect markdown cadence. Ask about Day-2 discounts and final-hours “half-price” policies so you’re not surprised by clearing strategies. (AARP)

• Donation readiness. If your plan includes donating, pre-identify charities that accept furniture vs. soft goods; line up pickup before the sale ends to dump less and document more. (Kiplinger)

• Tax documentation. For donations, keep detailed itemized lists with FMV support; Form 8283 over $500 of non-cash gifts; consider a qualified appraisal if any single item or group exceeds $5,000. (IRS)

  
  

10) Bottom Line: Decision Framework

1. Inventory check.

   • 50% high-demand categories? → Lean professional estate sale.

   • Only a few valuables + lots of low-demand categories? → Hybrid (specialist sale for valuables + donation).

2. Constraints.

   • Time crunch / real-estate closing soon → Donate/Dispose or pro sale with post-clean-out included. (Schwab Brokerage)

3. Tax position.

   • You itemize? Donations can add material value (if documented).

   • You don’t itemize? Donating is still fast and mission-positive, but don’t count on a tax benefit. (Bankrate)

     
     

The Takeaway

• If you’ve got many high-demand items and need turnkey labor, a professional estate sale is usually best—budget 30–50% commission. (Schwab Brokerage)

• If you’ve got a few valuables plus a lot of low-demand housewares, sell the valuables via specialists and donate the rest (only a tax win if you itemize and document FMV). (IRS)

• If you’re on a tight deadline and the contents are largely lower-demand, donate/dispose for speed and house readiness. (Schwab Brokerage)

  
  

Sources (selected)

• Charles Schwab — “Estate sale need-to-knows”: typical commission ~35–40%, scope of services. (Schwab Brokerage)

• National Estate Sales Association (NESA): commission ranges and extra-fee awareness. (National Estate Sale Association)

• AARP (multiple articles): realistic pricing (china/vases), commission expectations, common markdown practices, DIY pitfalls. (AARP)

• EstateSales.net survey summaries: average gross around $18k; most sales < $20k. (SmartAsset)

• IRS Publication 561 & IRS guidance on charitable contributions: how to determine FMV, documentation (Form 8283; appraisal thresholds). (IRS)

• Bankrate: donation-deduction only benefits taxpayers who itemize. (Bankrate)

• Category-level demand (what sells vs. doesn’t): designers/professionals and industry blogs reporting strong vs. weak categories; warnings on silver-plate, big brown furniture, formal china, mass-produced collectibles. (Veranda)