How to Start an Estate Sale Organizing Business

An estate sale typically is held when a person has died, but estate sales also can be conducted when seniors downsize into smaller homes or relocate to assisted living. The U.S. Census Bureau projects that nearly one in five Americans will be 65 or older in 2030, indicating a growing demand for estate-sale services.

Things You'll Need

• Business license
• Tax identification number
• Business incorporation papers
• Research library
• Digital camera
• Computer storage device

Instructions

1. Research your state, county and local laws related to estate-sale businesses. Laws governing estate-sale companies are not uniform. Some states require operators to have an auctioneer's license, while others have no regulations other than the usual business requirements. The best place to begin is to talk with your local Better Business Bureau (see Resources section). If an office is not available, contact the state office of business development or business regulations to determine the requirements for an estate sale organizer.

2. Obtain official business documents. Apply for a state business license, business tax identification number and any other licenses required by your local governments. Plan ahead, because it may take several months to complete the requirements to operate as a business.

3. Set up the business operations. Toll-free and private number voice mail business services are available from several services (see Resources section). Register for an Internet domain name and email account. Build a basic website using a free account or purchase services from other online or local business providers. Establish a checking account and order separate checks printed with the business address. Most banks require a state business license and a company tax identification number to obtain a business account.

4. Establish a research library for collectibles and antiques. (Consider buying used copies of these references to keep costs down.) Focus on obtaining basic volumes for glassware, pottery and dinnerware, coins, guns, silver, jewelry and fine art. The age of the volume is not a concern, because the price list for the items vary by year and geographic region. Focus on books with excellent photographs and exact titles for items to assist in online research to determine approximate value for items found in the estate.

5. Develop legal contracts and inventory forms. Consult an attorney to review the final wording of the documents to ensure that they meet the state's contract law requirements. Online sample contracts may not be not sufficient, so locate a local legal professional with experience in this field. Contact the local bar association for names of attorneys who meet this requirement.

6. Build an image library to use as a reference for setting prices. Attend the first day of local estate sales to observe how items are displayed, priced and offered for sale. Use a digital camera to collect images and put them in a file or binder with the date and location of the sale and the price of each item. Attend the last day of the sales to see which items sold and note any reductions in prices.

7. Promote the business through print and word-of-mouth advertising. Take out ads in local newspapers and church bulletins. Network with local estate attorneys and real estate agents, whose clients may be potential clients for you.

Tips & Warnings

• An estate-sale company cannot sell real estate unless the principal business owner (or partner) is also a licensed real estate agent. Agents are required to work under the supervision of a licensed broker. A brokerage may work as a dual office, handling both real estate and estate sales, but each business is regulated under separate laws.

References

• US Census Statistics
• Sample city license requirement
• State Auctioneer Information

Resources

• FreeConferenceCall.com
• Sample Estate Sale Permit Requirement
• Better Business Bureau Online Locator