How Estate Auctions Work
An estate auction sells the contents of a home, or selected valuable items, to the highest bidders. It can turn a houseful of belongings into money quickly, and competitive bidding can push prices up for desirable pieces. Here is how the process usually works.
1. Consultation
An auctioneer visits the home or reviews photos, looks at what is there, and explains whether an auction makes sense. Good candidates include antiques, art, jewelry, collectibles, firearms (handled under the law), tools, vehicles and quality furniture.
2. The contract
The agreement should spell out:
- Commission, a percentage of the sale price that varies by company and the value of the items.
- Other fees, such as moving, cataloging, photography, advertising or cleanup.
- Buyer's premium, an extra percentage many auctioneers charge the buyer.
- Reserves, minimum prices for valuable items, if allowed.
- When and how you are paid after the auction, and what happens to unsold items.
3. Preparation
The company sorts, cleans, photographs and catalogs items, and groups smaller things into "lots." Items may be sold onsite or moved to the auction house.
4. The auction
- Onsite auctions happen at the home, often in a single day with a live auctioneer.
- Online auctions run for several days, reaching buyers far beyond your area.
- Auction house sales combine your items with others in a scheduled sale.
5. Settlement
After the sale, you receive a statement listing what sold and for how much, minus commission and fees, with the payout.
Auction vs. estate sale
- Auction: prices set by bidding, good for high-value and collectible items, items leave fast.
- Estate sale: items tagged with prices and sold over a few days, good for a whole household of everyday items. See estate sale vs. cleanout and DIY estate sale.
Many families use both, sending the best pieces to auction and the rest to an estate sale, then a cleanout crew for what remains. See finding hidden valuables in an estate.