REVIEWING THE CONTRACT WITH THE CLIENT
After you’ve viewed the entire estate, ask the client if they want you to handle their sale. If they say yes, bravo! You did a great selling job! And now it is time to sign a contract with them.
It’s very important not to skip the contract process. Read the contract over with the client so that, without a doubt, they know what it says. They may have questions along the way, which means they’re listening. Some will be very upset with the loss of their loved one and may veer off at times. Just be patient with them.
It’s important to ask the client if their name should be on the proceed check or if it should go to “the estate of Jane Doe.” Oftentimes the person you’re speaking with is the executor of the estate, which may be reflected in the contract, as well.
I’ve had people contact me months in advance before they’re actually ready for a sale, for whatever reason. Thus you may or may not get to this point, but I must add that if you’ve made them feel comfortable with you and your services, they will call you back when they’re ready.
Often customers at an estate sale have little compassion for those left behind. They may blurt out hurtful things like, “Look at this piece of junk; who’d ever want that?” or some such nonsense. I’m very used to these remarks, and because I’m not emotionally connected to the items, it matters not what someone may say. However, it would certainly hurt family members’ feelings, causing them to want that potential buyer to leave.
I make sure that my client knows the reason, too. I try to take off Mondays and Fridays; however, very often I’m running to another potential estate sale. Thus it may be Monday evening before I settle down to tally up the figures. Clients usually understand. You don’t want a client to worry about their proceeds at all. If they do, they won’t give you a referral, and that’s how I obtain most of my sales. This can’t be stressed enough: word of mouth is the best form of advertisement. It’s the bread your butter is spread on.
Even while we were there, she took a phone call, chatted, and came back to us to say, “I’m trying to get a job, but that man said first I had to get my head on straight.” My brother and I looked at each other thinking the same thing. Should we or shouldn’t we take this sale? I always feel for people in distress, so I took the sale.
I only had a few days to set up, take pictures, upload them online, and handle the sale. The seller didn’t let me begin until the Thursday morning before the sale! With her help and no crew, we moved things around in her split-foyer home. All the while, she kept trying to tell me how we should do it.
I stuck to my guns, and it looked great when I walked out Thursday evening. But when I returned Friday morning, she had moved things her way. I was livid! Fortunately, she paid for the ad, with a check up-front Thursday morning, which I promptly cashed before I began the setup. I had no money out of pocket, just my time.
Again, when Friday evening came all was priced and set for a terrific sale.
When my brother, Dwayne, and my daughter, Ashley, met me at the sale, the client had again moved everything in the basement into the walkways, which meant nobody could view the items. I told the client there was no way I was handling a sale there.
I took down the checkout table that I had placed in the living room Friday. The seller grabbed my arms and squeezed, saying, “You have to do the sale! I have to have money!” I did not yell but firmly told her I wouldn’t do more work for her after she had changed everything I had set up. My brother stood close by. She kept hold. I knew how to pull my arms downward to release her grip, something my tae kwon do black belt son Caleb taught all of us to do when someone grabs you like that. My brother quickly stepped in and supported me.
My family and I were out and in our cars within minutes. The client stood there astonished that we wouldn’t do her sale. I said, “I’ll leave some of my signs. Customers will still come because it’s advertised online and in the newspaper. You’ll be okay.” I’d placed 10 signs out along her curvy roadway.
Sometimes my usual $350 minimum is too high and or too low. Cleanout people have to factor in expenses such as their helpers, the fee to dump trash, and gas. They are not just picking up furniture but all the items left after the sale, including trash. You’ll have to adjust the amount according to each sale and the remainder that’s left. It takes a bit of try-and-see what works best, but you’ll soon catch on.
Generally, in my area, 30 percent is utilized based on what’s there. In my contract, I state a flat fee of $1,000 or 30 percent, whichever is greater up to $5,000. If the customer has been referred to you and there’s little in the estate, you might want to change the percentage to 35 percent and only handle a one-day sale, thus having to pay employees for fewer days worked and still enabling a referred sale. Always view the estate to know approximately how many workers you’ll need and how much time you’ll need for set up and formatting photos. Don’t ever quote a fee over the phone without first viewing the intended sale, no matter how pushy a potential client may be.
Since you’ve already viewed the contents, you should have a good idea of how much you think the contents will bring. This will enable you to state your fees based on what you think your return will bring. But I caution you not to divulge this figure to your sellers because that’s what they will then expect, and you can’t pinpoint who will show up at the sale and how deep their pockets will be.
I make sure to ask what, if any, items the client or their family members will be taking. Sometimes they take most of the finer pieces, which in turn means I have to charge a larger percentage, such as 35 percent, to cover expenses and income for myself and workers. I won’t take a sale if the remaining items are garage sale items. Even if the family takes most of the finer pieces, they generally won’t take all the finer pieces, and there will be enough for a decent sale.
ADDITIONAL THINGS TO KNOW
If a physical paper ad is requested, the customer may ask if they have to pay for the advertisement up front. Since I have an account with the local newspaper, I just charge it to their final costs and pay the bill off the top of the sale, which is stated in the contract. I also print out a copy of the ad with their final paperwork.
Once the contract is signed and to help the client see what I can do for them, I walk around the house, picking up a few items and telling them what this or that might bring at their sale. NOTE: I limit this to only a few items that I’m really sure will sell at the quoted amount, or perhaps better. I’m not giving them an appraisal, just a general idea. They’ll be astonished that a tiny little piece of Limoges is actually worth $50 or more, and they’ll be equally interested in what they should throw away prior to the sale. Many times I have to tell clients a host of items that should be trashed and what should be left for sale, but only after they sign the contract.
If the seller hasn’t removed the wanted items yet, I implore them to take everything out at least a week before I come to set up the sale. This makes it 10 times easier to prep a sale since I don’t have to move their items around or locate a corner to stash them in, out of buyers’ sight.
At times, the house hasn’t been sold yet, and the client will stay there even though we’re to sell all items noted. At these times, I just tell them to have their family members, if they have any living close by, take one bedroom and place all items they are to keep in there. Then we’ll place orange tape across the closed door, marking the room as NFS (not for sale). Generally, everyone respects this.
THE MESSAGE I WANT TO COMMUNICATE TO YOU IS:
Antique furniture 20 years ago was the trend and sold like hotcakes. However, people in the Baby Boomer age bracket have pretty much bought what they liked. And now the next generation wants a fresher look. Guess what’s in vogue now? Nope, not Victorian-style antiques, but retro furniture! Anything from the 1940s, ’50s, ’60s, and ’70s is selling, even if it needs repairing. There is still an array of beautiful Victorian and later pieces that sell for enormous amounts at high-end auction houses. So don’t rule out that sector just yet. You just might find a very valuable piece in someone’s home, and if you do, you need to advertise, advertise, and advertise it to pull in top collectors.
Commissions are different based on content. Either there’s enough for a sale or merely junk that would do best in a garage sale, which means you politely thank them for allowing you to view their estate and say a quick adieu. Don’t waste any more time once you’ve decided it’s not worthy of a sale, and move on to the next appointment. I won’t even view an estate if all the questions I asked over the phone enlighten me as to the estate’s garage-sale items.
There’s no doubt about this one. I’ve met various types of people in this business, which is something you can’t really prepare for, although you can prepare to be diplomatic at all costs. Even if you don’t hit it off with one family, you can count on being a smash hit with yet another. Some potential customers call you for advice never intending to hire you. When I notice a caller only wanting prices for their items, I politely stop the conversation and state, “If it’s an appraisal you want, I charge extra for that. Is that why you called me, or do you actually want an estate sale?” I don’t pull any punches, but I’m never mean. I just don’t want to waste my time nor theirs. Out of respect, they shouldn’t have called with other intentions, as I get paid for appraisals, too.
Then again, you’ll meet the nicest people along the way, and generally most are very cordial. Some clients just get it and realize they don’t know anything about this venture and allow your advice and judgment to handle the sale in a business-like manner.
On the next page is a contract you may wish to utilize until you can customize it for your own needs. I usually have to tweak this yearly, and I still read the entire contract with each customer before they sign on the dotted line.
ESTATE SALE CONTRACT
Agreement made this _____day of______________________________20_________ between______________________________________________________________________
And______Victoria Gray_________________________________________________ hereafter called Estate Sales Personnel.
The Estate Sales Personnel hereby agrees to use her professional skill, knowledge, and experience to the best advantage of both parties in preparing for and conducting the sale.
NOTE: We do not allow family members at the sale as this can and has lost sales for clients.
The seller hereby agrees to turn over and deliver to the Estate Sales persons, to be sold at a public Estate Sale the items at said address. No item shall be sold or withdrawn from the sale prior to the Estate Sale except by mutual agreement between seller and Estate Sales Personnel. If an item or items is/are sold or withdrawn Estate Sales Personnel shall receive full commission on the item(s). And IF items are priced and sold, then appraisal fees apply. Items to be protected at estate sale or taken from sale prior to sale are:
The Estate Sale is to be held at: __________________________________________ ________________________________________________________________________________
Sale weekend date: ___________________________________________________________
And in case of postponement because of inclement weather, said Estate Sale will take place on a later date agreeable to both parties.
The Estate Sales Personnel will send a cashier’s check and or money order with net proceeds from sale within three days after sale, along with sale records. (This allows all customer checks to clear the bank.) The seller agrees that all expenses incurred for the advertisement, promotion, conducting said sale, and/or cleanout fee shall be first deducted from the proceeds realized from said Estate sale before the payment and satisfaction of any liens or encumbrances. The Estate Sale Company reserves the right to withdraw from sale IF homeowner and/or family members become hostile OR homeowner refuses to comply with contract OR safety is an issue. All time and expenses incurred are due and payable should this transpire.
Approval initials are required for cleanout crew to remove unsold items and/or trash removal (same day, weather permitting) after sale’s end. |
Seller agrees to pay all sale expenses including:
Estate fees_____________________________________________
Packing fees__________________________________________
Other Personnel_____________________________________
Advertising___________________________________________
Other, e.g., Cleanout fee___________________________
| X_________________________ | X_________________________ |
Estate Sales personnel signature |
Seller’s signature |
Commission Schedule
There are generally no packing fees or other personnel fees unless otherwise stated on the contract. Circumstances of each estate will determine if such is needed.