What is an estate sale? Everything you need to know about how they work and what to expect, whether you are holding one yourself or shopping second-hand gems

In short, an estate sale refers to the professionally managed process of dealing with a homeowner's material possessions, and sometimes their former home. Most commonly, they happen after someone moves house, inherits a property or passes away.

Hiring a company to undertake this is a popular option for people who have a lot of stuff and don't wish to tackle it themselves, or for families who don't know where to start when sifting through the contents of a passed loved one's estate.

It's important to learn as much as you can about how estate sales work before signing up to do one, or even if you just want to shop them regularly, knowing what to expect is key.

Here, we talked to real estate experts and interior designers to explain how estate sales work, as well as what to look out for at an estate sale, and the kinds of interior items and vintage decor you will likely find.

How does an estate sale work?

There's a meticulously structured procedure behind the process of an estate sale, but fortunately most of it will be managed by a company. Therefore the main job of a property owner is to carefully read through any contracts and do their best to find a reputable company who will be sensitive to the process, especially if it involves the passing of a loved one.

Lindsey Harn, a top agent at Christie's International Real Estate and owner of the Lindsey Harn Group, simply breaks down the way an estate sale works:

'Typically, a seller [you] of an estate sale will have limited knowledge about the property they are selling since they may have never lived there. Sometimes, an estate plan will designate a professional trustee, fiduciary, or attorney to make all of the decisions on the trust when it comes to the sale of the property. So in many ways, it is similar to a traditional sale with the caveat that there could be more than one decision maker, and sometimes that process can slow down the overall process.'

An estate plan will be laid out when you speak to someone to help manage the estate sale. This will detail how the procedure will go forward, as well as whether you're selling just the property's contents or the property as well.

Items from the property can either be sold on-site at the property or at an auction house, usually depending on the nature of the items inside. If the former owner possessed a lot of valuable pieces to sell at an estate sale – artwork, jewelry, and silverware, for instance, the items in the sale would be safer and likely sell for a higher amount at an auction.

What are the disadvantages of an estate sale?

One of the main disadvantages of estate sales for the seller is the costly cut the managing company will take out of the sale profits. You will hopefully be gaining a lot of assistance with the process, but it's worth considering if the cut a sales agent is asking for is too much to proceed.

Stephanie Lindsey, principal designer of Etch Design Group, knows a thing or two about estate sales and these costly percentages. 'These companies take a commission from the total proceeds, usually between 25% to 50%, so if maximizing profit is of importance, this might not be the best route.'

Stephanie also noted how a seller's potential profits are cut even further by the speedy nature of estate sales. 'The process is handled by an estate sale company most of the time, which assesses the value of items, organizes the event, and markets it to the public. But because items are sold quickly, they are sometimes sold significantly under market value.'

This is a major factor in what makes estate sales appealing to members of the public seeking to snap up an antique bargain, but results in many sellers instead opting to auction. At an auction house, reserve prices can be set, ensuring the seller is happy with the amount of money they are receiving, and sentimental items can be treated with more care and consideration. Though there is always a small fee deducted from the take-home pay when selling through auctioneers.

What is appealing about estate sales?

There are numerous reasons why estate sales are much-loved by many, from new shoppers to avid thrifters. Aside from the potential to pull a great bargain if after separating trash from treasure at an estate sale, you can find some incredibly interesting, unique pieces made from quality materials that are harder to come by today without eye-watering price points.

'Designers, like me love estate sales because they offer unique, high-quality pieces that add character and history to a space,' says Elana Mendelson, principal designer and CEO of luxury design firm, Elana Designs. 'Below are some specific items that I enjoy hunting for at estate sales:

• Case goods like dressers, cabinets, credenzas, and sideboards are great finds as they are often solid wood, well-crafted pieces with dovetail joints. These pieces can easily be refinished by sanding and staining/painting, or they can be left as-is for a timeless, nod-to-the-past look.
• Dining tables and chairs are also fabulous items to snag from estate sales, as they are often heirloom-quality pieces that can be mixed with modern elements for a transitional style.
• Hand-knotted Persian and Oriental rugs are timeless, age beautifully and add old-world charm and warmth to current spaces.
• And, lastly gilded or carved mirrors are one of the best finds as they add an antique touch to a modern space.'

Who gets the proceeds from an estate sale?

The 'proceeds' or earnings from an estate sale tend to go to one of two people: the homeowner or the estate's beneficiaries. If the home's owner is alive and selling their property and possessions, the money will go back to them to do with what they wish.

But if the previous owner of the home passed away, the proceeds are to be handled as stated in their will. If it's stated in their will that all of the proceeds of their estate are to be divided equally go to their children, for example, the money after deducted fees will be split between them. If the will states the money is to go to charity or somewhere else though, it's important to ensure you're with a reliable company that will make sure that wish is granted.

If you're new to visiting state sales, it can be easy to become overwhelmed with excitement and snap up extra items because they're a bargain. However, according to estate sale experts and interior designers, there are some items that should always be skipped, even if their price points are tempting. Here are 8 antiques to avoid buying at an estate sale and 10 things you should never buy at an estate sale in general, as well as why.