Many people dispose of their estate, particularly after retirement and downsizing. Often, this is the solution they find that would work in the situation. What many fail to understand, however, is the difference between a mere estate sale and a liquidation. When you’re planning to sell your property, you should know the fine line that separates the two.
An estate sale involves an auction or a simple deal that would dispose of a portion or the entirety of a property. This can be because of a death or a simple necessity to move out of the said asset.
The Fine Line
Estate liquidation, while often referred to as an estate sale, differs in terms of coverage. An estate sale has limitations, as it would only encompass the property. Liquidation, on the other hand, would involve a broader scope, as its sphere of inclusion could expand to bonds, real property, fine jewelry, fine art, coin collections, and stocks. While the two concepts are almost the same, liquidation can extend its reach.
There are four D’s that drive the liquidation industry: death, debt, divorce, and downsizing.
The first factor is the most common reason, and there are many reasons that lead the scenario into a liquidation. For one, the heirs might not be interested in managing the belongings. It could also be due to the incapacity of the heir to store and keep the properties. Perhaps it’s a dispute among the heirs that resulted in a court order declaring the need to divide the property through liquidating the estate and sharing the proceeds.
The Need for Professional Assistance
It’s a tiring venture to go through the liquidation on your own, and it could be challenging to find a buyer if you don’t have many connections. This is where trusted estate sale companies in Orange County and other parts of the US can be of assistance, as they would handle the liquidation for you.
Normally, a realtor has to oversee the sale of real land, although other items no longer need permits apart from local business licenses. In some cases, families consult probate lawyers to supervise the liquidation and ensure the legality of stock, bond, and investment trades along with the change of ownership in real property.
An estate liquidation is broader in scope than a sale, and it is important to know the difference before deciding to dispose of a property.