What Happens to Unsold Items After an Estate Sale?

How much is usually left after a sale

Almost every estate sale leaves something behind. One estate planning publisher tells families to expect roughly 5 to 25 percent of their items to remain when the doors close. Often that is the everyday stuff: worn furniture, kitchen odds and ends, clothing, books, and anything priced too high to move.

Leftovers still have to leave the house by a set date, so agree on the plan before you sign.

Who owns what does not sell

The contract decides. Under many contracts, the company sells on the estate’s behalf, so anything unsold stays the estate’s property. Some contracts change that. They hand unsold items to the company as part of its fee, or in exchange for doing the cleanout.

That trade can be fair. A company that takes on a full cleanout is doing real work, and a pile of mismatched leftovers may not be worth much. What matters is that you know about it before signing, and that the rest of the contract is clear.

Your options for leftovers

Companies handle leftovers in different ways, so ask which of these they offer, what each costs and who decides.

Cleanout included in the fee

Some companies clear the house as part of their commission, donating what they can and disposing of the rest. Our guide to what estate sale companies charge in Texas covers how often cleanout is billed separately. Either way, get the finish date and the expected condition of the house in writing.

Donation

Charities will often take usable furniture and household goods. The Salvation Army schedules free pickups of furniture and household goods by ZIP code. Many Habitat for Humanity ReStores pick up large items too, though not every store does, and ReStore asks donors to call their local store to confirm. Expect charities to want items in usable condition.

A buyout of what remains

Some companies, or buyers they work with, offer one flat price for everything left. It is fast and it empties the house. The price will be low, because the buyer takes on the hauling and the risk that much of it is worth little. Ask for the offer in writing and compare it with the cost of donating and hauling.

Consignment

Better pieces that simply missed the right buyer, such as a good dining set, art or fine jewelry, can go to a consignment shop or an auction. You are paid if and when they sell, less the seller’s cut. It suits a handful of quality items, not a whole household.

Haul-away

Whatever nobody will take goes to a junk hauler or the landfill. Hauling and dumping cost money, so a plan that donates first usually leaves a smaller bill.

The family takes it back

If the contract leaves leftovers with the estate, you can keep what did not sell. Some families collect a few sentimental pieces that nobody bought. Agree a time with the company so your pickup does not collide with the cleanout crew.

The red flag: overpriced items the company keeps

Watch for a contract that gives unsold items to the company. If good pieces are priced too high to sell, they can reappear in the company’s shop, online store or next sale after the sale ends, and the estate gets nothing for them.

A clause that transfers leftovers proves nothing on its own. The combination deserves a question, though. Consumers’ Checkbook suggests asking whether a company also runs a consignment shop, and calls that a possible red flag. Questions worth asking:

• Who owns anything that does not sell?
• Can the family see a list of unsold items before they leave the house?
• Are higher-value items marked down on the last day?
• Does the company, or anyone connected to it, resell leftovers?

For more on vetting a company before you hire, see how to choose an estate sale company.

Donation receipts and taxes

When leftovers go to charity, ask for a receipt made out to the estate and an itemized list of what went. Consumers’ Checkbook recommends getting an itemized list of donated or unsold goods for your tax records.

Whether the estate or an heir can deduct a donation depends on who owned the items and how the estate files, so that is a question for a CPA.

Value is its own question. The IRS explains how donated property is valued in Publication 561, which says used clothing and household items must be in good used condition or better to be deducted. For how the sale money itself is treated, read are estate sale proceeds taxable. This is general information, not tax advice.

When the house has a closing date

A closing, a lease end or a care move-in squeezes the last step. With little time, a buyout or a cleanout agreed in advance empties the house fastest. Put the leftover plan and its date into the contract up front, rather than working it out on the final afternoon of the sale.

What to get in writing

Before you sign, the contract should state:

1. Who owns unsold items.
2. Which leftover route is used (donation, buyout, consignment, haul-away or family pickup), and who chooses.
3. What cleanout costs, if anything, and the date the house will be empty.
4. That donation receipts and an itemized list come to you.
5. How leftovers and their costs appear on your settlement statement.

If you would like help finding a company, tell us about the house, and we’ll call you to go over your options, then match you with a few select companies.