An estate liquidator is a professional who converts a person’s assets into cash. When people die, they often leave behind things like houses, furniture, cars, clothing, and other assets that aren’t “liquid,” or cash-based. The task of converting these assets into cash falls to an estate liquidator.
In most cases, those who inherit an estate hire estate liquidators. An estate liquidator can be contacted by the executor of a will or the person in charge of asset distribution. Heirs who inherit a house or other assets that are difficult to convert to cash can contact a liquidator directly.
The liquidator then visits the estate to assess its potential value and determine the best way to liquidate it. The liquidator may pay a visit to the property or appraise the items that the heirs or executor want to sell. He then decides on the best course of action for converting the asset into cash.
Estate liquidators must know how to appraise different estate assets and/or have access to appraisers. If a liquidator is hired to liquidate an estate full of old oriental rugs, for example, he or she must be able to have the rugs appraised in order to determine the cash value that a seller should receive. Without knowing how much the estate is worth, the liquidator may end up losing a significant portion of the estate’s value by failing to properly liquidate it.
After that, the liquidator must decide how to best convert the assets into cash. When it comes to liquidating an estate, there are several options. The estate liquidator could either take the items from the estate to a public auction, where they would be sold in lots or individually to bidders, or he could hold an estate sale, where people would come to the home or a predetermined location to buy items from the estate.
Both auctions and estate sales have advantages. Auctions may be more widely publicized, particularly if portions of the estate are auctioned off alongside other items. Customers may attend estate sales, but an estate liquidator must price each item for an estate sale with a price tag so that buyers can shop the sale. Whatever method of liquidation is chosen, estate liquidators must have a good idea of how much the items are worth and must organize them so that they are appealing to customers.