"WHAT YOU SHOULD KNOW"

About Liquidating an Estate

 

Settling an Estate: A Step by Step Process
I can't count how many times I've received a phone call from someone that starts out "I have an estate to settle. I have to empty the house and I don't know where to begin." Most people only go through this once or twice in a lifetime so this is understandable. Fortunately I am on the other end of the phone to guide them through it. I help settle estates every day.

 

Liquidating an estate is a process that I would strongly recommend family members take step by step. It can be an overwhelming task. Often there is an entire house of personal property to sort through, which can be a sentimental and emotionally charged undertaking. There may also be concerns about identifying certain items and what their value may be, especially older pieces, adding to the daunting project at hand. The following is how we at Leighton Galleries assist folks in the process of liquidating an estate, from start to finish.

 

Step 1 - Deciding Heirlooms
We always insist that the first step in this process is to determine those items that the family would like to keep as heirlooms, mementos, etc. With this accomplished, we have a clearer picture of what is left to sell.

 

Step 2 - The Appraisal
The next step may or may not include a professionally prepared estate appraisal. Depending on the gross value of the estate, an appraisal may be necessary for tax purposes. Or, an appraisal may be desired for equitable distribution among the heirs.

 

An appraisal is a formal process whereby our appraisers go from room to room describing, measuring and recording the contents of the home. Once this on-site task is completed, our job is to then determine each items' value based on research of similar sales in a comparable marketplace. Finally, a report document is prepared which details the total fair market value of the estates' personal property. Your attorney will usually guide you as to the necessity of a formal appraisal.

 

Now that heirlooms and mementos are identified, and, if required an appraisal is completed, the liquidation process begins. First, we want to make sure that the more significant items are sold in a way that maximizes the value for the estate. Which brings us to the next step, selling at auction.

 

Step 3 - The Auction
Auctions have become a way to offer estate items to a worldwide market. Just a few years ago, the only way to expose an auction to a widespread audience was through national trade papers. Today, hosting sites such as Liveauctioneers.com allow auction houses to have their auctions hosted on an internationally recognized website, allowing buyers from all over the world a chance to compete for the right to buy fresh-to-the-market estate treasures.

 

An especially intriguing aspect of the online bidding platform is that not only can people anywhere in the world leave a bid in advance for an item, they can also bid on their computer, in live-time, against the in-house audience as the auction is occurring. We generally have 800+ bidders online competing with our in-house buyers and phone bidders. This includes folks from all corners of the world, to the local customer who can't get a babysitter on auction night. This combination of exposure and convenience makes the auction a superior selling platform, ensuring maximum value for estate consignments.

 

Therefore, it is strongly suggested that the more valuable items in the estate get "pulled" for auction. The "auction pull" is an event where we go from room to room, identify those items of significance, document them, pack and remove them to our gallery. This includes antiques, artworks, finer furniture, sterling silver, jewelry, smalls by good makers, collectibles, etc. Once the auctionable items are back at our gallery, we clean and photograph each lot. A lot can consist of a single item or an assembling of articles to be sold as a group. We then research their market value, describe, measure and then catalog the lot complete with its pre-auction estimate.

 

Now that the more significant items have been removed for auction sale, we determine what to do with the remaining contents of the home that do not fit the auction criteria, bringing us to the on-site sale.

 

Step 4 - The Estate Sale
Contingent upon the volume of such things as used furniture, decorative art, bric-a-brac and general household goods, conducting an on-site estate sale becomes the next logical step in the liquidation process. The estate sale is a process in which we organize, price and safeguard the home in preparation for a one-day sale that is open to the public. These sales are a great way to recycle everyday objects from an estate and find them a new home. The general goal of an estate sale is to find a balance between making the estate as much revenue as possible, and emptying as much of the contents as possible.

 

Following the estate sale, what is left in the home is generally dated used furniture, various inexpensive knick-knacks, kitchenware, basement and garage debris, etc. How much remains will usually correlate to the quantity and quality of items you started out with. It's time for the clean-out!

 

Step 5 - The Clean Out
The clean-out is an event whereby all unsaleable household items, rubbish and debris, from the attic to the basement, are removed from the premises, leaving the residence empty, broom-swept and vacuumed. In some houses, we have left with a couple of bags of rubbish. In most cases, a dumpster or hauler needs to be utilized. Or, as I remember in one house, we utilized 11 dumpsters!!! Whatever the case, the home is now ready for a trouble-free real estate closing.

 

To recap:

     * The family has identified their heirlooms and mementos.

     * An appraisal, if required, has been completed.

     * Significant items have been removed for auction sale.

     * The general contents have been sold at the estate sale.

     * The remaining contents have been removed and disposed of via the clean out process.

 

At this point you are done. You have had one company take you through every step of the process in estate liquidation - from selling that one exceptional painting that hung over the mantle to making sure the garage has been swept out. Each task handled with experience, professionalism and a common goal of obtaining maximum value for the estate. I can't count how many times I've received a phone call from someone that starts out "I have an estate to settle...", and fortunately for the caller, I am on the other end of the phone to guide them through it. I help settle estates every day.

 

Diana Aberback
Manager, Client Services
Leighton Galleries, Inc.

 

Leighton Galleries is a full-service Auction House advocating Buyer Awareness in the matters of art, antiques, auction houses and appraisal practices.