How to Avoid Estate Sale Scams

When you are relying on an estate sale company to handle valuable belongings, you need to feel confident that you're working with reputable professionals. Unfortunately, estate sale scams do happen. But knowing what to look for before you hire a company can protect your family, belongings, and proceeds from the sale.

Mile High Estate Sales shares advice about avoiding estate sale scams so you can easily identify red flags and feel safe and comfortable in your decision.

Common Estate Sale Scams and Red Flags to Watch For

Not all estate sale scams look the same, but certain warning signs warrant a closer look.

No Written Contract

Reputable estate sale companies like ours provide a written agreement outlining the terms of the arrangement. While verbal promises can be misinterpreted or forgotten, having everything in writing establishes a clear record of everything discussed. Contracts should clearly outline responsibilities, commissions, additional fees, payment timelines, sale dates, and what happens to unsold items.

Unclear or Excessive Fees

Ask companies exactly what percentage or commission they charge and whether there are additional fees for advertising, cleaning, moving, or disposal. Trustworthy companies are willing to provide a straightforward breakdown of all these fees.

Vague Pricing or Valuation Practices

Make sure to learn how a company researches and values items, such as furniture, antiques, jewelry, and collectibles. Find out whether the company has expertise with rare and specialized items, and understand who has the authority to change prices and when.

Pressure to Sign Quickly

It's a red flag for an estate sale scam if a company pressures you to immediately sign a contract so you don't lose your opportunity. Take your time to compare and speak with multiple companies, because selling an estate is a significant financial decision.

No References, Reviews, or Established Presence

Before hiring a company, research their reputation by looking for reviews and testimonials from past clients, as well as references you can contact. No online presence doesn't automatically mean you're falling into an estate sale scam, but a complete lack of verifiable information prompts further investigation.

No Clear Plan for Unsold Items

It's important to know what happens to unsold inventory before a sale occurs. Ask potential companies to include a clear plan for handling unsold items in your agreement so there are no surprises at the end.

How to Avoid an Estate Sale Scam

The best way to avoid estate sale scams on Facebook and elsewhere is to do your research before ever giving a company access to your belongings and property.

Research and Compare Estate Sale Companies

Don't automatically go with the first company you contact. Compare several companies and learn how they conduct sales, advertise, and price merchandise.

Check Reviews and Ask for References

Check out reviews across multiple platforms to gain valuable insights into how a company works with clients. You can also ask a company for references from previous clients to get direct input from someone who's been in your situation.

Understand Commissions, Fees, and Payment Terms

Before you sign anything, make sure you understand exactly how much the company will get paid from your sale. All financial terms should be documented in writing, and if you don't understand a fee, ask about it before signing.

Read the Contract Before Signing

Take your time to read through the entire contract, ensuring it covers company responsibilities, sale dates, commissions, expenses, and other important details. Never assume something is included in your contract just because you got a verbal promise in conversation.

Ask How Items Will Be Handled and Priced

Ask companies how they determine prices and whether they will offer discounts as the sale progresses. Get a sense of how high-value items will be handled and how they make pricing decisions to reduce your risk of an estate sale scam.

How to Spot Estate Sale Scams on Facebook

Facebook estate sale scams have become all too common, so be cautious about what you see on social media. There are reputable sales advertised in this way, but be suspicious of offers that seem too good to be true.

Watch for Suspicious Listings or Payment Requests

It's a red flag when a seller wants a deposit or full payment before you even see an item. Be wary of unusual payment methods or pressure to send money immediately or move conversations off the initial platform.

Verify the Estate Sale Company or Seller

Rather than solely relying on a Facebook profile, independently search for the company and look for an established history. If the information you find doesn't match up, proceed carefully.

Be Careful With Personal and Financial Information

Never provide unnecessary personal or financial information to a seller you don't know. Use established payment methods and deal directly with verified businesses rather than an unverified individual account.

What to Do If You Suspect an Estate Sale Scam

If you believe you've fallen victim to an estate sale scam, stop all communications and stop payments until you've verified the situation. Save all evidence of your communications in case you need to dispute a transaction or report fraud. If you've already sent money, contact your bank to ask about your options. You may also need to report fraudulent activity to the applicable platform or law enforcement.

How to Choose a Trustworthy Estate Sale Company

An estate sale company should make you feel informed and comfortable, so look for one that communicates clearly, explains its pricing, has a good reputation, and provides a detailed written contract.

At Mile High Estate Sales, we are always willing to answer your questions and provide transparent resources on our FAQ page and blog.

Final Thoughts on Avoiding Estate Sale Scams

• Estate sale scams aren't always obvious.
• Researching multiple companies is crucial.
• Exercise extra caution with Facebook and other social media listings.
• Don't rush into a decision.

Estate Sale Scam FAQs

Here are answers to common questions we receive about avoiding estate sale scams. To learn more, visit our FAQ page, call us at 303-204-4464, or contact us online.

What is an estate sale scam?

An estate sale scam is a fraudulent activity involving the sale or management of an estate. It could involve false listings, misleading financial terms, or unauthorized charges.

How can I tell if an estate sale company is legitimate?

Research a company's website, history, and references. A company should provide clear information about its fees, services, and contract terms.

Are estate sale scams on Facebook common?

Estate sale scams on Facebook are common, especially involving fake listings, abnormally low prices, and advance payment requests.

How can I avoid Facebook estate sale scams?

Verify the seller outside of Facebook by checking reviews and contact information. Also, be cautious about deposit requests and pressure to pay immediately.

What should I look for in an estate sale contract?

Ensure the contract details clear information about fees, commissions, responsibilities, sale dates, payment terms, pricing authority, expenses, and what happens to unsold inventory.

What should I do if I think I've been scammed by an estate sale company?

Document all of your communications and payments, then contact your financial institution if you've already paid for something, and consider reporting the suspected fraud to the authorities.