An executor stands in a parent’s Upper West Side apartment, keys in hand, facing a lifetime of accumulated possessions. The will directs that all personal property be sold and the proceeds distributed among the heirs. The task feels monumental—cataloging, pricing, and selling everything from furniture to fine china. The most practical path forward is often hiring an estate sale company, but this introduces a critical question: what is a fair price to pay for this service?
As an executor, you are a fiduciary. This means you have a legal duty to act prudently and in the best interests of the estate’s beneficiaries. Simply hiring the first company you find without understanding their fee structure could be a breach of that duty. The commission isn’t just a business expense; it’s a direct reduction of the inheritance you are entrusted to protect.
Understanding the Commission Structure
Most estate sale companies in New York work on commission, typically charging between 30% and 50% of gross sales. The rate depends on the scope of the work.
A lower commission—say, 30% to 35%—is more common for estates with a high concentration of valuable, easy-to-sell items like fine jewelry, signed artwork, or high-end antiques. These sales require expertise but often involve less physical labor relative to the final sale price. The company can achieve a good return with fewer transactions.
Conversely, a higher commission—often 40% to 50%—is standard for estates where the value is spread across hundreds of everyday items. Think tools, kitchenware, books, and standard furniture. The labor involved in sorting, staging, pricing, and selling these items is significant, and the final proceeds are generated by many small sales. The higher percentage reflects the greater effort required to liquidate the contents of the home.
It’s a mistake to simply shop for the lowest percentage. A company offering 30% may not have the expertise to properly price a collection of rare books, leaving significant money on the table. A more experienced firm charging 45% might generate a far greater net return for the beneficiaries, even after their higher fee is paid. Prudence is about maximizing the estate’s value, not just minimizing expenses.
The Executor’s Duty of Care
Your authority to sell estate property is granted by the will and governed by New York law. Specifically, Estates, Powers and Trusts Law (EPTL) § 11-1.1 grants fiduciaries the power to sell property, but this power must be exercised with care and diligence. When the beneficiaries later review the estate accounting in Surrogate’s Court, a questionable expense can be challenged.
Document your process. I advise clients serving as executors to take these steps:
- Interview Multiple Companies: Get at least two or three written proposals. This demonstrates due diligence and gives you a clear sense of the market rate for the specific type of property in the estate.
- Verify Their Credentials: Are they insured? Bonded? Can they provide references from other executors or attorneys they have worked with? A professional operation will have this information readily available.
- Request a Detailed Contract: The agreement should clearly state the commission rate and, just as importantly, what services are included.
Stewardship is about making deliberate, defensible choices. Keeping a record of your research and the basis for your decision protects both you and the estate you represent.
What the Commission Might Not Cover
The biggest source of conflict between executors and estate sale companies often comes from misunderstandings about extra costs. A commission on gross sales is rarely the only expense. A thorough contract should explicitly address who pays for potential add-ons.
These can include:
- Clean-Out Services: What happens to the items that don’t sell? Most contracts stipulate that the executor is responsible for the final clearing and disposal of the property, which can be a substantial cost. Some companies offer this service for an additional fee.
- Specialist Appraisals: If the estate contains unique assets like fine art or rare coins, an expert appraisal may be necessary. This is often an upfront cost borne by the estate.
- Advertising and Marketing: While basic advertising is usually included, a campaign targeting specialty collectors might incur extra charges.
- Security: For sales involving high-value, portable items like jewelry, the cost of hiring security guards may be passed on to the estate.
Before signing any agreement, be certain you understand the full financial picture. A lower commission rate can look appealing until you realize it excludes services that another, more expensive proposal includes. The goal is clarity and a predictable outcome for the beneficiaries.
Choosing an estate sale company is a significant business decision made on behalf of others. It requires a thoughtful approach that balances cost with expertise. By doing your research and understanding your duties, you can carry out the task effectively and honor the trust placed in you as executor.
An executor’s duties are substantial. If you are preparing an estate accounting for Surrogate’s Court and must justify the expenses incurred, schedule a consultation with our firm. We can review the accounting and advise on its proper presentation to the court and beneficiaries.
