What is an estate sale and how does it work?

What an estate sale sells

An estate sale sells the personal property inside or around the home. That can include furniture, tools, dishes, clothing, collectibles, yard equipment and other household items. It does not sell the house itself.

Estate sales are common when an owner has died or when someone is downsizing. For an heir or adult child, the goal is often simple: empty the house in a way that is organized and documented before the real estate is sold.

What to do before anything is sold

Start by securing the house and the contents. Change access if needed, protect vehicles and valuable papers, and make sure the person in charge knows where keys, titles and records are kept. Indiana supervised estate instructions say the personal representative must locate and secure estate property and maintain adequate insurance coverage.

Next, confirm who has legal authority to sell the belongings. Being named in a will is not always enough by itself. A probate court appointment, will power, state law or a court order may control what the executor or personal representative can do.

If the house will be sold next, keep the contents work separate from the home sale decision. The estate sale clears personal property. The later house sale may involve probate, title, liens, a mortgage or other issues, which are separate from the sofa, tools and dishes.

How estate sale companies are paid and chosen

An estate sale company is hired to appraise, price and sell the personal property. The contract should explain what the company will do, how items will be priced, what happens before and after the sale, and when the estate will receive money.

Company pay can include a commission and other fees. The Minnesota Attorney General warns that commissions can range as high as 30 to 40 percent and that customers may also be charged for moving, appraisals, security, trash removal, cleaning, advertising or other sale related expenses.

Do not rely only on a friendly walk through. Interview more than one company, compare rates and terms, and put promises in plain written language. For general consumer habits, the Ohio Attorney General advises checking reputation and complaint history before choosing a business.

• Ask for a written contract before the company starts work.
• Ask how commission, fees and expenses are calculated.
• Ask how and when the estate will receive its share of cash proceeds.
• Ask for an itemized list of items or groups of items sold and the actual price collected.
• Ask for receipts and records for credit card and check transactions.

Records and tax details for inherited items

Good records protect the estate and the person in charge. Keep the company contract, item lists, sales totals, receipts, payment records, donation records and cleanup bills. If the estate is in probate, the court or beneficiaries may later need to see what came in and what went out.

The tax side starts with basis. IRS Publication 551 says the basis of inherited property is generally fair market value at the date of death, or fair market value on the alternate valuation date if the personal representative chooses alternate valuation. This is why date of death values and sale records matter. For the house itself, see capital gains tax on an inherited house.

• Keep date of death value records when you have them.
• Keep the sale price collected for each item or item group.
• Keep receipts for checks, cards and cash proceeds.
• Keep records of expenses charged by the company.
• Keep donation records or disposal records for items that do not sell.

How long an estate sale takes

There is no one timeline that fits every estate sale. The time depends on legal authority, sorting, pricing, local rules, the company contract, the open sale days and the cleanup afterward. If probate approval is needed, the contents sale may have to wait for that step.

Local rules can affect timing. The Illinois Division of Real Estate says the locality where the sale occurs may require a license or permit, and a revenue registration may be needed if taxable goods are sold.

Do not confuse the short contents sale with the longer estate process.

• Secure the house and confirm who is in charge.
• Inventory or sort items before the sale.
• Choose a company and sign a written contract.
• Hold the sale under any local rules that apply.
• Collect sale records, handle leftovers and clean out the house.

What happens to items that do not sell

Unsold items should still be handled as estate property until the person with authority approves the next step. Do not let family members take valuable items without a record. If a will or court order controls personal property, follow that authority.

After the contents are handled, the house sale can move forward. If you are still choosing the sale path, these pages may help: how long it takes to sell a house, selling without a Realtor, and probate home sale help.

• Set aside items named in the will or requested by heirs, if allowed.
• Consider a second sale, consignment or auction only if the estate has authority to do that.
• Donate items if the authorized person and beneficiaries approve that path.
• Remove trash and hazardous items according to local rules.
• Save the final cleanout and sale records with the estate file.

Frequently asked questions

Sources

Checked against each source on November 3, 2026. This page is general information, not legal or tax advice.

1. The Division of Real Estate Review, Spring 2023 (Illinois Department of Financial and Professional Regulation, Division of Real Estate)
2. Avoid Estate Sale Scams (Office of Minnesota Attorney General Keith Ellison)
3. Publication 551 (12/2025), Basis of Assets (Internal Revenue Service)
4. Vanderburgh Circuit and Superior Court Rules / Instructions to Personal Representative of Supervised Estate (Indiana Courts / Vanderburgh Superior Court, Probate Division)
5. Ohio Rev. Code 2113.39 (Ohio Laws / Ohio Revised Code)
6. Chapter 2113, Ohio Revised Code (Ohio Laws / Ohio Revised Code)
7. How to Find a Good Contractor (Ohio Attorney General)