Estate sale companies offer a range of services to help clients liquidate their personal property, often after the owner has passed away or when they are downsizing. If you are considering hiring an estate sale company, it is important to understand the contracts involved, which will outline the scope of their services and fees. Here are some key considerations when reviewing estate sale companies contracts.
Services Offered
The contract should clearly outline the services that the estate sale company will provide. This may include organizing and pricing items for sale, advertising the sale, managing the sale itself, and providing clean-up services afterwards. Make sure that the contract includes a detailed inventory of the items to be sold, along with any exclusions or items that will require special handling.
Fees and Commissions
Estate sale companies typically charge a commission based on the total sale proceeds. This can range from 20% to 50%, depending on the company and the scope of their services. Make sure that the contract specifies the commission rate, as well as any additional fees for services such as advertising or clean-up. You should also ask about any minimum sale thresholds, as some companies may require a certain level of sales to justify their services.
Payment Terms
The contract should specify when and how you will receive payment for the sale proceeds. Some estate sale companies will pay you immediately after the sale, while others may take several weeks to process payments. Make sure that you understand the payment timeline and any associated fees or charges.
Liability and Insurance
Estate sale companies should carry liability insurance to protect against any damage or theft that may occur during the sale. The contract should specify the limits of their liability and any exclusions, as well as the process for reporting any incidents. You may also want to consider purchasing additional insurance coverage to protect your assets.
Cancellation and Termination
The contract should outline the circumstances under which you or the estate sale company may cancel or terminate the agreement. This may include situations such as an unexpected change in the scope of the sale or a breach of contract by either party. Make sure that you understand your rights and obligations in the event of a cancellation or termination.
Choosing the right estate sale company and reviewing the contract carefully can help ensure a successful and stress-free sale of your personal property. By understanding the scope of services, fees, payment terms, liability and insurance, and cancellation and termination policies, you can make an informed decision and protect your assets.