2024 Estate Sale Industry Insights Report

A Comprehensive Look at the Estate Sale Industry

The 2024 Estate Sale Industry Survey sheds light on the evolving dynamics of a thriving market. Conducted by EstateSales.NET, the survey captures the experiences and practices of 774 estate sale businesses nationwide. Covering trends, seller demographics, sales insights, operational strategies, and growth opportunities, this report empowers estate sale professionals with the tools and knowledge to optimize their business performance in a competitive and changing landscape.

This report not only reflects key themes but also delivers actionable recommendations to help sellers thrive.

The estate sale industry is marked by resilience and adaptability, with shifting demographics and technological advances defining its trajectory.

  • Estate Sales as a Primary Income Source: For 55% of surveyed businesses, estate sales are the primary source of income. This highlights the industry’s significant role in supporting the livelihoods of professionals.
  • Service Diversity: While 71% of businesses focus almost exclusively on estate sales, 22% supplement their services with auctions. This diversifying approach allows sellers to meet broader client needs.
  • Aging Leadership: The industry skews older, with 68% of business owners over the age of 55. This suggests opportunities for new leaders to step forward and innovate as generational transitions occur.
  • Business Tenure: Longevity remains strong, with 25% of businesses operating for 11-20 years. This foundation of experience anchors the market as newer players emerge.

These trends indicate that while the industry faces inevitable change, seasoned professionals and newcomers alike are poised to make the most of new opportunities.

Best Practice: Prepare for generational shifts by investing in knowledge-sharing, mentoring, and leadership training for younger staff members.

Seller Profiles and Business Setup

Estate sale sellers operate within a range of business models and levels of experience. This diversity strengthens the industry and showcases its accessibility to entrepreneurial talent.

Seller Profile Highlights:
  • Established and Emerging Players: While 32% of businesses are newer (0-5 years old), a solid 25% have over 20 years of history, demonstrating that the field welcomes both innovators and established veterans.
  • Team Size: Sole traders represent 25% of respondents, but businesses with 3-4 employees (22%) are common, particularly among those that manage larger, more complex sales. Most employees (70%) are contractors, with the national average wage being $16.30 per hour.
  • Professional Credentials: 86% of sellers have a business license, reinforcing industry professionalism.

Best Practice: To stand out, ensure signed contracts with all clients. This builds mutual trust through transparency and clearly established terms.

Sales Insights and Revenue Drivers

The survey provides a detailed breakdown of sales volumes, commission structures, and revenue patterns. Sellers reveal the complexity of balancing profitability with client expectations and operational costs.

Key Metrics:
  • Average Sales Volume: 32% of sellers conduct 10-20 sales annually, highlighting the regularity of smaller-scale yet impactful transactions.
  • Revenue Per Sale: 42% of sales generate less than $10,000, while 22% exceed $20,000 per sale, demonstrating room to achieve higher yields in the right markets and circumstances.
  • Commissions and Fees: The average seller commission rate nationwide is 40%, while additional fees, like trash removal and advertising costs, are often passed on to clients.
  • Value-added services: Many sellers provide diversified services such as clear-outs (69%) and donation management (58%). Additionally, 27% offer consignment to auctions, making operations more tailored to client needs.
  • Hybrid Approach: The adoption of online sales platforms has increased significantly, with 51% of respondents using them to reach a larger audience and achieve better pricing. Hybrid sales combining online and in-person models saw a 50% increase in sales volume and a 15% increase in revenue per sale.

Best Practice: Invest in online sale capabilities. Whether through an e-commerce site like EstateSales.NET Marketplace or an auction platform like LiveAuctioneers, these tools expand your buyer pool and improve pricing outcomes.

Efficiency in setup, client relations, and marketing is a hallmark of successful businesses in the estate sale space.

Efficiency and Setup:
  • Quick Setups: 36% of businesses prepare for a sale within 14 days of signing a contract, while 35% take over three weeks. Efficiency is a key differentiator in gaining client trust.
  • Thresholds and Decisions: To take on a job, 55% of sellers set a minimum gross sale revenue threshold of $5,000 or less. The most common reason for declining a sale is unviable revenue potential, emphasizing the importance of careful evaluation before committing resources.
  • Scope of Sales: Nationwide, 25% of sales consist of an average of 1000-1999 items, with an additional 20% featuring 500-999 items. Handling large-scale sales requires significant organizational efficiency and resource management.
Marketing Reach:
  • Where Sellers Advertise: EstateSales.NET is the primary channel used by sellers to advertise their sales. More than half are also using their own email subscriber list and social media channels to promote sales via digital advertising. Traditional advertising methods such as using signage and flyers are still commonplace.
  • Investment in Marketing: The average estate sale company invests $1,000 to $5,000 per year in promoting its sales and brand, with the vast majority of this money being spent on digital advertising.
  • Digital Presence: 69% of estate sale and auction companies now have their own website.
  • Social Media: Facebook leads the social reach with 91% of sellers using it to market sales. Instagram adoption has doubled since 2023, now at 50%, while TikTok and YouTube are gaining ground.
  • Email Outreach: 68% of sellers use email campaigns to engage buyers and secure clients.
Client Expectations:
  • Client Involvement: Most sellers (61%) are open to clients attending their own sales, but half would rather they didn’t. Why? It’s often about navigating emotions given the situation that’s lead to liquidation.
  • Challenges: The leading challenges businesses face range from managing clients’ expectations to handling location-specific hurdles or tackling a massive number of items, these logistical factors can make or break how smoothly a sale runs.
  • Post-sale Follow-Up: Most sellers (67%) complete payouts to clients within 7 days of a sale’s conclusion. After a typical estate sale, 75% of sellers donate unsold items, helping the client to clear the property and giving items a second life via charitable means.

Best Practice: Prioritize social media investments. A mix of platforms, from Facebook to Instagram, will help you thrive in a digital-first marketing landscape.

The Shift Online: Maximizing Reach and Returns

The estate sale industry is increasingly turning to online platforms as a key channel for growth, with 51% of sellers now incorporating digital sales into their business models. This shift is driven by three primary benefits sellers value most:

  • Increasing Audience Reach: Online platforms connect sellers with a broader, more diverse pool of buyers.
  • Achieving Higher Prices: Digital sales help sellers secure better prices for their clients, offering a competitive edge.
  • Optimizing Item Valuation: Online tools support smarter pricing strategies, ensuring maximum return for every piece sold.

By adopting a hybrid model that combines online and in-person sales, businesses are seeing tangible results. Many respondents reported a 50% boost in sales volume and a 15% increase in revenue per sale. Whether using online platforms to kick off events or to handle unsold items post-sale, the strategy enhances both clearance rates and overall profitability.

EstateSales.NET makes it easy for sellers to capitalize on this trend, offering the tools and reach you need to succeed in the digital space. If you’re not already leveraging online sales, it’s time to explore the benefits and unlock your business’s full potential.

Future Opportunities and Recommendations

The evolving estate sale landscape offers exciting opportunities for growth and innovation. Demographics, market dynamics, and technology advancements create space for sellers to expand and strengthen their businesses.

Recommendations for Sellers:
  1. Leverage AI and Data: Use tools like Google Lens and estate pricing databases to optimize valuations. Industry databases such as the LiveAuctioneers price results and Worthpoint are also heavily adopted search tools.
  2. Invest in payment tech: The industry is keeping pace with technological advancements, with 82% facilitating seamless transactions via card payments and a strong adoption of peer-to-peer services such as Venmo (51%) PayPal (44%) and Zelle (37%) along with digital wallets (44%) such as Apple Pay and Google Pay, ensuring convenience for shoppers.
  3. Consider differential payment terms: The survey showed a growing interest in offering buy-now-pay-later apps like Affirm, Afterpay or Klana, and an increase of sellers exploring cryptocurrency options. These programs cater to new audiences of shoppers who desire flexible payment terms, that sellers can offer with low risk to their business.
  4. Expand Marketing Efforts: Leverage paid social media ads and cross-platform campaigns to reach broader audiences. Stay consistent in brand messaging to establish authority across all channels.
  5. Streamline Operations: Focus on shorter preparation timelines without sacrificing service quality. This improves turnover and client satisfaction.

The integration of hybrid sale models, AI-driven research, and robust online platforms will position sellers to thrive in the future while adapting to evolving consumer demands. Sellers who focus on customer care and innovation will always come out ahead.

The Industry’s Future Is Bright

With shifting demographics, growing technology adoption, and strong community engagement, the estate sale industry has never been better equipped to handle change. EstateSales.NET continues to lead the charge, providing powerful tools, market insights, and a supportive platform for sellers to succeed.

Explore the detailed findings of the 2024 Estate Sale Industry Survey and gain insights tailored to your state by clicking here. Empower your business with localized data and actionable intelligence today!