Starting an estate sale company can be an exciting and rewarding business venture for entrepreneurs who want to create a dynamic, customer-focused business.
Having said that, you should keep in mind that launching a successful estate sale company requires careful planning, significant experience, and a wide range of skills.
In this comprehensive guide, we’ll walk you through all the essential steps you’ll need to take to start your own estate sale company, from conducting market research and purchasing the necessary equipment to obtaining licenses, setting up operations, and attracting customers.
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Industry Overview
The estate sales industry is a niche but steady sector that’s primarily driven by life transitions such as downsizing, relocations, and estate liquidations after a death. Due to a growing aging population and increased interest in secondhand goods, the industry has experienced consistent growth, with an expected CAGR of 2.1% throughout 2024.
This growth is expected to lead to the industry’s total market size reaching $230 million by the end of the year. Furthermore, competition remains localized since companies focus on regional markets, while demand is largely shaped by economic conditions and housing trends.
Despite this increase in revenue, estate sale companies are keeping less of their revenue as profit due to rising operational costs. In fact, profit has decreased from 17.2% of the money earned in 2018 to an estimated 11.7%, though the industry still remains attractive due to its relatively low barriers to entry.
Startup Costs
If you’re considering whether an estate sale company is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own estate sale company?
Well, it depends. The initial investment for an estate sale company varies widely based on factors such as your business’s size, the type of equipment it needs, and the specialty of the services it offers:
- Marketing and promotion is likely to be one of the biggest initial expenses when initially starting out. Expect to spend anywhere from $200 to $1,000 on advertising for your first sale — which could be used on things like online ads, social media promotion, or printed materials (e.g., flyers and signs). These costs vary depending on how aggressive you want to be with your marketing efforts and will increase if you opt to include a professional website and logo design.
- Licensing and insurance is another significant area of expense that you’ll need to budget for. Getting fully licensed and insured can easily cost between $500 and $1,500, though this estimation can vary widely depending on your location. While business licenses typically involve a one-time fee ranging between $50 and $500, general liability insurance can cost anywhere between $500 and $1,000 annually.
- Office space and equipment is another important cost to bear in mind when starting up your estate sale business — while estate sale companies can start with a home office, many soon realize that they need additional workspace or storage. Renting a small office or storage unit for your business could cost anywhere from $500 to $1,500 per month, though larger commercial offices will cost far more. You’ll also need basic supplies such as a point of sale (POS) system, pricing tags, markers, and display tables, which can run between $100 and $500.
In total, your initial startup investment can range widely depending on how you set up your business, but with careful planning, you should be able to start with an investment well under $10,000.
Earning Potential
As an estate sale company owner, your clients will generally be individuals who need to liquidate the contents of a home or business. Common clients include heirs of a deceased parent, individuals going through a divorce, people facing financial burdens, or those downsizing after the death of a spouse — which are often referred to as the “four D’s”: Death, Divorce, Debt, and Downsizing.
Most estate sale companies earn their income by charging a percentage of the total gross sales from the estate, typically between 25% and 50%. This percentage usually covers all your services, including appraising items, pricing them, promoting the sale, staging the event, managing buyers, and conducting post-sale cleanup.
A smaller estate might have a lower commission rate, while a larger, more valuable estate could justify a higher percentage. Be sure to research what other estate sale companies in your area charge to ensure that your pricing is competitive.
To increase profitability, many estate sale companies offer additional services (e.g., cleaning and donation coordination, packing, or trash removal) for estates that don’t warrant a full sale. Additionally, specializing in high-end estates with valuable assets such as fine art, antiques, or jewelry can allow you to command higher commissions.
However, this requires specialized knowledge and training in appraisals, as well as building a network of valuable contacts such as probate attorneys or collectors who can refer you to clients with larger estates.
8 Steps to Starting an Estate Sale Company
In order to start an estate sale company, you’ll need to complete the following steps:
- Planning Your Estate Sale Company
- Registering Your Business
- Setting Up Your Taxes
- Obtaining all Necessary Equipment
- Assemble a Team (If Applicable)
- Network with Key Industry Professionals
- Getting all Applicable Licenses and Permits
- Obtaining Business Insurance
We’ve broken each one of these down in more detail below.
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Step 1: Plan Your Estate Sale Company
Before diving into your estate sale company, you’ll need to spend some time conducting thorough market research.
This can involve analyzing the local market to understand the demand for estate sale services, identifying potential competitors, and assessing the target demographic.
This will help you evaluate the financial viability of your project — including projected revenues and expenses — as well as determine the best location for your business.
Finding a Suitable Name
Choosing the right business name is both important and challenging.
Your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.
If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide or use our Estate Sale Company Name Generator tool.
If you do have a name in mind, we recommend researching the following to confirm it’s available:
- Your state’s business records
- Federal and state trademark records
- Social media platforms
You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.
Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for an estate sale company.
Conduct Market Research
Before launching your estate sale business, conducting thorough market research is a critical step to ensure the success of your business. By understanding your local market and how competitors operate, you’ll be better equipped to develop a business that meets client needs and stands out.
In particular, we recommend focusing on the following three points in order to conduct effective market research:
- Demand in Your Area: It’s important to ensure that you base your business in an area containing many of the types of clients who need estate sale services (i.e., “the four Ds” mentioned above), as this will give you an idea of whether there’s consistent demand for estate liquidation services. You can gather insights on this by checking local demographics, paying particular attention to the number of listings of recent estate sales in your area and whether there’s a large aging population.
- Your Target Market: A great way to make your business stand out from your competitors is to identify the specific group of clients you want to serve earlier on (e.g., smaller estates or specialize in high-value items like antiques and collectibles). This will allow you to tailor your services to this niche, allowing you to meet the unique needs of that client base and build a loyal customer network more quickly.
- Local Competitors: The final essential area to focus on when conducting your research is how your competitors run their businesses. Be sure to investigate how the primary estate sale companies in your area manage their business — focusing on details such as how they price their services, how they structure payments, how they manage the process, and how they promote the sale. This can provide valuable insights into best practices and gaps in the market you can fill.
Develop a Marketing Strategy
Effective marketing is key to growing your customer base. Below, we’ve broken down a number of key strategies to look into when marketing an estate sale company:
- Online Listings and Estate Sale Platforms: One of the best ways to promote your upcoming sales is through a dedicated estate sale website such as EstateSales.net, EstateSales.org, as well as any other listing sites that may be popular in your area. These platforms are specifically designed for estate sale shoppers, which means they can significantly boost attendance.
- Email Marketing: Additionally, by building an email list of past buyers and interested clients, you can send them regular updates about upcoming sales and featured items. You can also make use of targeted email campaigns to reach out to potential sellers, particularly those who might be downsizing or in need of estate liquidation services.
- Local Advertising: Distribute printed flyers in high-traffic areas like community centers, libraries, or senior living communities to reach potential clients and buyers. Local newspapers can still be an effective way to advertise estate sales, especially in communities where older generations may rely on printed media.
- Referrals and Networking: Another powerful way to market your company is by building relationships with professionals who frequently encounter individuals in need of estate liquidation services and can thus offer valuable referrals to your business. Additionally, you can encourage satisfied clients to recommend your services to others by offering referral discounts or rewards.
- Signage: Use large, clear signs to direct traffic to the sale location. Eye-catching signs can help attract passersby who may not have heard about the sale through other channels. Consider branding your vehicle with your business name and contact information, as this is a cost-effective way to market your business while driving around town or setting up at sales.
It’s important to remember that a balanced marketing approach should incorporate a variety of the strategies mentioned above, rather than focusing too much on a single method.
Step 2: Register Your Business
One crucial aspect that cannot be overlooked when starting your estate sale company is the importance of establishing a solid business foundation.
While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs — especially when it comes to estate sale companies (with potential liabilities and debt).
This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.
In practice, this means that if your estate sale company were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.
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Note: If you’re interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).
Step 3: Set Up Your Taxes
The next step you’ll need to take is to register your business for taxes. To this, you’ll need to obtain an Employer Identification Number (EIN), which you can think of as your business’s Social Security Number.
If you form your LLC through a specialized LLC formation service, this will likely be already handled for you in exchange for a small additional fee.
Even so, it’s important to make sure that you fully understand your business’s tax obligations; since these can depend on your location, it’s a bit difficult to accurately break down exactly which taxes you’ll be subject to.
Nevertheless, most businesses will typically be subject to income tax, sales tax, and employment taxes at the federal level. Estate sale companies in particular will also likely be faced with either self-employment taxes (if they’re owner-run) or payroll taxes (if they have employees). Depending on your location, your business may also be required to pay local city or county taxes.
Due to the complex nature of business taxes, we always advise our readers to seek the help of a professional accountant or business attorney for this step.
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Step 4: Obtain All Required Equipment
With your business registered for taxes, it’s time to obtain all the equipment you’ll need in order to offer estate liquidation services, which will include:
- Point of Sale (POS) System: This term refers to the combination of hardware and software that a business uses in order to process all its transactions, whether they’re made digitally using a card or by cash. Investing in a reliable POS system will ensure payments are processed quickly and smoothly during estate sales.
- Specialty Tools: If your business will perform appraisals in-house, you’ll need certain specialty tools in particular in order to perform this role. These tools may include magnifying glasses, jewelry scales, a safe or lockbox, and potentially even security equipment (e.g., cameras and a guard).
- Pricing Tools: If you’ll be operating out of a physical workspace like a storefront, you’ll need to obtain certain tools in order to be able to clearly marker items during the sale process. This could include purchase tags, stickers, and markers (used for clearly marking items during the sale process).
- Inventory Management System: This is a software tool that you can use to catalog items, track their pricing, and monitor sales — all of which is essential to being able to efficiently manage the wide variety of items in an estate sale, from the moment you receive them to the point of sale.
- Transportation: Finally, you’ll also need a vehicle in order to be able to transport items, equipment, or unsold goods after a sale — if you don’t own one, using a rental service is a great alternative.
This is a good time to decide whether you want to operate your business using a physical workplace or entirely online. While a physical storefront can attract local foot traffic and provide a space for customers to see items in person, it comes with higher overhead costs such as rent, utilities, and maintenance.
Step 5: Assemble a Team (If Applicable)
Once you’ve obtained all the necessary equipment to run your estate sale business, it’s time to consider whether or not you’ll need to assemble a team.
While some estate sale companies are entirely owner-operated, most eventually decide to hire staff as the workload increases since it allows them to handle larger or more frequent sales and grow their business.
If you decide to hire a team of staff, there are certain specific roles you should be on the lookout to fill.
The first key role to consider is that of an estate organizer — a position that, if you’re starting your own estate sales business, you’ll likely be filling yourself. As the estate organizer, you will be responsible for sorting, pricing, and setting up items for sale. This role is crucial to the success of an estate sale, as it will be filled by the individual who’s primarily responsible for managing its entire organization.
Another important role you’ll need to fill within your team is someone who can perform appraisals. While you may work with independent appraisers for occasional high-value items, having an in-house appraiser on your team can be highly valuable — particularly if your niche involves things like antiques, collectibles, or furniture.
Next up, you’ll need some storefront operators and cashiers to manage the POS system during sales, handle transactions, and assist customers with questions. As one of the least specialized roles you’ll need to fill, this should be one of the easiest to find suitable candidates for.
Finally, it’s important you have the staff to be able to move items, set up displays, and clear out a home after the sale. While this doesn’t have to be a dedicated setup and cleanup crew, it’s essential you have someone to perform this role and make sure properties are left in a clean, organized state for their next owners/occupants after a sale.
Step 6: Network with Key Industry Professionals
Building strong connections with other professionals in the estate sales industry through networking can significantly boost the success of your business — it not only provides valuable insights into best practices you should follow, but also helps establish credibility and trust for your company.
When thinking about networking, becoming a member of an organization like the National Estate Sales Association (NESA) — or any other similar groups in your local area — is a good start. These offer resources, education, and networking opportunities through various types of events (e.g., webinars and conferences), making them an excellent way to meet experienced professionals in the industry.
Alternatively, you can check out trade shows, auctions, and estate sales conferences — these are all great places to meet other professionals and engage in conversations that could lead to partnerships, referrals, or even mentorship opportunities.
Since many estate sales professionals actively share tips and engage in discussions on platforms like LinkedIn, Instagram, and other industry-specific forums, being active on them is important if you want to grow your network — it can also help you to stay updated on industry trends.
Networking effectively takes time, but developing relationships with other industry professionals can give your estate sales business a strong foundation and valuable support.
Step 7: Secure All Necessary Permits and Licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
Sales Tax Permit
A Seller’s Permit — which is also known as a Sales Tax Permit — is an essential for a estate sale company as it’s required of any business selling a physical product.
Moreover, you’ll need this permit in order to be able to collect sales tax from your customers, which must then be remitted to your state’s tax authority. Without this permit, collecting sales tax is illegal, and failing to do so can result in fines.
To learn more about how sales tax will affect your business, read our article on Sales Tax for Small Businesses.
Zoning Permit
Depending on where your estate sale business is located, you may need to obtain a zoning permit. This ensures that your business complies with local zoning laws, especially if you’re conducting estate sales in residential areas or planning to operate out of a physical storefront.
Some municipalities have specific rules about running a business from home or holding public sales in certain zones. The process typically involves submitting an application to the local zoning office and may require a fee.
It’s important to comply with these zoning regulations as failure to do so can lead to fines or restrictions on where you can conduct sales.
Home Occupation Permit
If you plan to run your estate sale business from your home, you may be required to obtain a home occupation permit.
This permit allows you to legally operate a business from a residential address while ensuring that your operations do not disrupt the neighborhood or violate local ordinances.
Requirements for obtaining this permit vary by location but generally involve ensuring that the business doesn’t create excess traffic, noise, or other disturbances. Many home-based businesses must apply for this permit through their local government, and a small fee is usually involved.
Secondhand Dealer License
In some states or local jurisdictions, estate sale businesses may need to obtain a secondhand dealer license. This license is required for businesses that buy, sell, or trade secondhand goods, including furniture, antiques, jewelry, and collectibles — which are common items at estate sales.
The goal of this license is to help regulate the resale market and prevent the sale of stolen property. You may be asked to submit to a background check and keep detailed records of items sold.
Licensing fees and renewal requirements will vary by location, but this permit ensures that your business is compliant with local laws governing secondhand sales.
Step 8: Get Business Insurance
In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance.
Note
Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.
While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most estate sale companies should consider.
We’ve briefly outlined these below.
General Liability Insurance
General liability insurance is a foundational coverage that’s essential for estate sale companies because it protects against claims of bodily injury, property damage, and personal injury that may occur during the estate sale.
An example of this might be if a customer slips and falls during the sale or if a valuable item in the home is accidentally damaged — in either of these cases this insurance would help cover any legal or medical costs.
The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.
Errors and Omissions (E&O) Insurance
E&O insurance — or professional liability insurance, as it’s sometimes known — covers legal expenses your business may face if a customer claims it provided negligent or inadequate services, such as incorrect appraisals or mishandling valuable items.
Estate sale businesses often appraise and price items, and if a client feels they were given inaccurate information, this insurance can provide protection.
The cost of E&O insurance for an estate sale business can vary depending on factors like the size of the business, the level of risk involved, and the coverage limits. However, on average, E&O insurance policies for small estate sale businesses typically range from $500 to $1,500 per year.
Commercial Property Insurance
Commercial property insurance is essential for safeguarding your estate sale business’s physical assets — such as any equipment, tools, or office space — in the event of damage due to fire, theft, vandalism, or natural disasters.
You shouldn’t be surprised to pay anywhere from $500 to $2,000 per year for this policy.
Having said that, rates can vary significantly based on factors such as your business’s location, risk profile, and the value of the property in question.
Workers’ Compensation Insurance
If your estate sale company will have employees, workers’ compensation insurance is likely going to be a legal requirement depending on your state.
This insurance policy provides coverage for medical expenses and lost wages to employees who are injured during work.
The average cost of workers’ compensation insurance ranges between $45 per month, but this can vary based on factors such as payroll, location, and (once again) your business’s specific risk profile.
Commercial Auto Insurance
Commercial auto insurance is essential for estate sale businesses that rely on vehicles for transporting items, equipment, or supplies to and from sale locations. It covers damages, liability, and other costs associated with accidents involving vehicles used for business purposes.
Without commercial auto insurance, a vehicle accident could lead to costly out-of-pocket expenses for your business, including repairs, medical bills, or legal fees.
The cost of this insurance will depend on factors such as the number of vehicles your business owns, the driving history of employees, and your desired coverage limit. However, small businesses will typically pay between $100 and $500 per month.
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How to Start an Estate Sale Company FAQs
What are the costs involved in opening an estate sale company?
It could take a while for your sales commissions to catch up with your startup costs. You might have to hire a part-time employee and run ads for your first estate sale before you start to see a payoff on that first event.
There might also be additional marketing costs, as well as the expenses of meeting all licensing and permit requirements, which will vary depending on where you’re doing business, as well as bonding and insurance costs.
In total, you should be able to start your estate sales company with less than $10,000.
Who is the target market?
Your clients will be individuals who wish to liquidate most or all of the contents of a home or business. This could include the heir to an estate of a recently deceased parent or a homeowner who wishes to quickly downsize due to increased financial burdens, or even a couple going through a divorce.
In fact, the industry mantra is that the clientele comes from the four D’s: Death, Divorce, Debt, and Downsizing.
How does an estate sale company make money?
Your compensation will usually be derived as a percentage of total gross sales, ranging from about 25% to 50%.
If the estate is small, your compensation might also be based on fees for marketing the sale, staging the event, cleanup or other elements of the assignment.
How can you make your business more profitable?
There are ancillary services you can offer along with — or instead of — an estate sale. These can range from cleanup and donation services when the size of the estate doesn’t warrant a sale to packing and trash hauling. Some business owners provide liquidation consultative services to larger estates.
Furthermore, if you have the proper training to be able to appraise valuable art, antiques, fine jewelry and collectibles, you can specialize in handling only the largest estates, with the highest commissions.