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The first time, upon Bilbo's return from the Lair of Smaug, Bilbo had been gone so long, he was declared legally dead, and his goods were being sold off as part of an estate execution (the exact Shire legal structure and names for this procedure were never mentioned).

The second time, Frodo sells off the remainder of Bilbo's things except that which he carries with him, when he pretends to move to Buckland.

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13y ago
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9y ago

He has been declared dead. They are auctioning off his household goods.

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14y ago

Bilbo had been gone for a year and they presumed he was dead, so they were having an estate sale.

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7y ago

They are being sold

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Q: Why are Bilbo's goods auctioned off?
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