Estate Sales

by Darrin DeRoches December 6 - 12, 2012

There is a big misunderstanding when it comes to estate sales that the estate has to be settled before the “estate home” can be sold. This is far from the truth and in reality the home is usually the biggest asset and has to be sold to close the estate. If you do not know what an estate sale consists of, it is usually when the parent or parents have passed on and their home becomes part of their estate. There may be multiple family members involved or it can be the government and banks. In most cases it falls to the family to settle the estate, with wills, assets and debts involved. Most people wait until the lawyers have all of the other matters settled before they sell the home but it should be one of the first assets sold.     The home usually holds the biggest value in one’s estate and once it is sold the proceeds are entered into the estate and then divided up amongst the parties involved. Unfortunately family usually gets involved and their emotions take over any business logic. Whether it is due to the fact that the homes hold so many memories or it holds so much money – families start to disagree about how to handle the home. I have seen families argue, cry, hire multiple agents or worse – allow the lawyers to become involved and drag on the inevitable and bill large fees in the meantime.     When an estate sale is listed, most agents look at them as “power of sales” in our market. Everyone is always looking for a “power of sale” but these are controlled by the banks and they will not sell it lower than the amount owed. An “estate sale” is usually a fast sale which means the property will be listed at value or under so the estate can be settled and the family can get their money – as fast as possible. The homes are usually in great structural shape, new windows, doors and roofs but they are usually lacking in new updates and style. The savvy buyer realizes a new kitchen and bath will bring it up to today’s requirements and they look to buy such “undervalued” homes.     The key to selling an “estate home’” is to contact a broker, like myself, who will take care of the transaction with your families wishes in the forefront. Properly marketed, these homes can get multiple offers and sell quickly so that you can settle the estate and make sure that the home goes to a family instead of a “flipper” who is looking to make a quick buck. Be wary of agents whose cards and flyers show up in your “estate sale” homes mailbox because there are agents who read the obituaries and target these homes. It may be hard to believe but I have actually seen it happen, it is not a myth. Properly handled, an estate sale can be a smooth transaction and garner a great result. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.