You might have seen signs for estate sales and might’ve even visited one or two. But what makes estate sales different? When would someone have an estate sale? Should you have an estate sale?
Below, we answer your questions about estate sales in San Diego, give you information about estate sales in San Diego, and explain how estate sales can be used if you are an executor, personal representative, or trustee.
What Is an Estate Sale?
An estate sale is a sale of a person’s belongings that is held at the residence of the owner. Items are sold out of the home and may be managed by an estate sale company. The sale is open to the public, who are able to rummage through the home for items they are interested in buying.
Estate sales are similar to yard sales and garage sales. However, they are often bigger because there are more items for sale. They also take up more real estate because the sale items are not limited to a small portion of the property, such as a garage.
Why Do People Have Estate Sales?
There are many reasons why someone might decide to have an estate sale, such as:
- The executor wants to liquidate the estate and provide the proceeds to the heirs or beneficiaries
- The property owner is downsizing and wants to clean out their personal belongings
- The family wants a quick and efficient way to dispose of a person’s belongings while making some money off of it
- The surviving family wants to sell the property, but a realtor insists that the family first clear out the personal belongings before listing the property
Does Someone Have to Die for There to Be an Estate Sale?
The term “estate sale” is usually associated with someone dying. The decedent’s heirs may choose liquidation of the estate if they have no use for the belongings and simply want to clean out the property so they can use or sell the real property. Liquidating the personal belongings is often a practical way to distribute assets fairly to the heirs or beneficiaries.
However, a person does not actually have to die for there to be an estate sale. The term estate refers to the totality of one’s belongings that they own at the time of their death that can be disposed of through an instrument such as a last will and testament or trust. Everyone who owns any property owns an estate.
Estate sales that involve a seller who is still alive are sometimes called “a living estate sale.” For example, a person may decide to have this type of sale if they will be moving into a nursing home or assisted living facility. Or, a family may be moving to another state and may not want to haul a lot of items across the country.
How Are Things Priced at Estate Sales?
If you attend a University City estate sale or an estate sale in San Diego County, it is important that you go in with a realistic vision. Items sold at estate sales are usually more expensive than what you would expect at a yard sale or garage sale. This is because the purpose of the sale is different.
With a yard sale or garage sale, a person may simply want to clean out their property and make a little money. Sellers might price their items as low as 10% of the price they paid for them.
However, estate sales are different. The family is trying to make as much money as possible to split between the beneficiaries. Additionally, an executor owes a fiduciary duty to the estate, so they must prudently price items. Government programs also have strict rules about not selling property for less than fair market value if that applies.
Additionally, the items that are sold in estate sales are often more valuable than items sold in garage sales. This is because people are still using their useful and attractive items when they have a garage sale. They are only trying to get rid of things they no longer use or want.
With an estate sale, the entire estate is liquidated, so there may be more valuable and modern items. You may also be able to find some high end items, such as designer clothes, handbags, and shoes. While the prices are probably higher in estate sales than yard sales, you have a chance at finding better items at estate sales. Also, the prices are better than buying retail.
How Do Estate Sales Work?
Families who are considering an estate sale often work with an estate sale company that can manage the sale. These are companies that provide estate sale services and can help with identifying items to sale, appraising them, and managing the sale itself. The company’s representatives may organize the items, such as presenting them in home staging vignettes.
The estate sale company may also provide other services such as estate auctions or online auctions. This often helps the company command a higher price for some items while reserving the remaining items for the estate sale. The company also helps advertise the sale. Many companies offer a free consultation to explain their services and how they can help. Estate sale companies often work on a commission, so they take a percentage of the total amount received from the sale.
On the day of the sale, customers are allowed to enter the property and look at the items for sale. The items often contain individual price tags, which is why these sales are often referred to as “tag sales.” The customer takes the item they are interested in purchasing or the tag to the seller. There may be some haggling about the price, but this is not as common as it is with yard sales or garage sales.
These sales sometimes take place over several days. There may be discounts as the sale is coming to a close. The estate sale company takes their commission. It may then dispose of the remaining items, such as by donating them or throwing them away. They may agree to take other items on consignment or for placement in an online auction.
What Items Are Sold at an Estate Sale?
San Diego estate sales may contain many treasures. What is included in a particular estate sale depends on what the person who died has left behind, the type of estate sale, and whether items have been grouped together from multiple people or families.
Some items you may find at an estate sale in San Diego include:
- Furniture, including mid century modern items
- Home decor
- Collectibles, such as antique trains, coins, stamps, cards, or jewelry
- Household items
- Tools
- Art
- Vehicles
- Books
- Electronics
- Auto parts
Should I Have an Estate Sale?
Whether or not you should have an estate sale depends on many factors, such as:
- Whether you have the legal right to sell
- The amount of items there are to sell the belongings
- Whether you stand to make more money selling the items in a different manner
- Whether you should distribute the items, rather than their monetary value, to beneficiaries or heirs
- The value of the items
- The amount of fees for liquidation services and estate sale company assistance
- The viability and attractiveness of other options
Where Can I Find an Estate Sale in San Diego CA?
If you are looking to find an estate sale to pick up treasures or get a better idea about what they’re all about, you can find many estate sales in the San Diego area. Some common locations where estate sales in San Diego County and nearby areas are held include:
- San Marcos
- San Clemente
- El Cajon
- La Jolla
- La Mesa
- Carlsbad
- Chula Vista
- Encinitas
- Escondido
- Oceanside
- Orange County
- Bonita
- Poway
- Del Mar
- Rancho Bernardo
- Rancho Santa Fe
- Los Angeles
You can also find online auctions that include estate sales. One popular site you can check out for current sales in the San Diego area is Cal Auctions.
Alternatives to Estate Sales
There may be alternatives to estate sales. For example, you may choose to have an estate auction. This typically involves customers going to an auction house and bidding on items. The item is awarded to the highest bidder, so you stand to make higher prices than selling the item at an estate sale.
Additionally, you can create clear guidelines for how you want your property distributed through proper estate planning. You might have other ideas for how you want the property you’ve accumulated over your lifetime going to strangers who are rummaging through your belongings. For example, you may want your grandson to inherit your hunting rifle, your daughter to inherit your jewelry, and the local animal shelter to receive a treasured dog house you built.
You can create a will or trust that dictates how you want your items distributed. You can begin the process right here at passdown™.
Takeaway
There is no shortage of estate sales in San Diego. However, estate sales do come with additional costs and concerns. You can use our estate planning platform to create an estate plan that meets your individual needs.