Dealing with estate sales

The one thing you should know about estate sales is there is no one-size-fits-all solution.

“The one thing that is common to all the situations is that the executor, administrator or trustee has responsibility of making decisions in the best interest in the estate or the trust, and not necessarily in their own interest,” said PAR’s District 2 Vice President Christina Cardone. “The Realtor® needs to understand who their client is and what capacity they are acting.”

Cardone said the challenges are in the relationship. “It’s like representing sellers in the divorce,” she said. “You have to know who your client is and what their interest is. We have to be careful in advising them. Helping our clients avoid risk is what we do, and there is additional liability in these situations.”

However, for buyers, purchasing an estate may lead to a bargain. “In spite of some complications we typically see in estates, they do need to sell simply and quickly. Usually, they sell completely ‘as is,'” she said. “As a buyer, expect to buy something that is probably not updated, but if you can make any concessions, and make it easier for the estate, you may get a deal.”

As a reminder, District 4 Vice President Lisa Sanderson said the home inspection is important in estate sales, as a Seller’s Property Disclosure Statement is not required. “The upside is that you can often get the property at a good price because a timely sale is usually more important to the seller than getting top dollar. Again, every situation is different, so buyers will want to rely on an experienced Realtor® to help them navigate the purchase and negotiate on their behalf.”

Sanderson added, “Often, people jump the gun in wanting to get properties on the market in an estate situation. The will needs to be probated and authority conferred on the executor/administrator officially, before signing of listing contracts, etc. Also, keep in mind that any inheritance taxes must be paid before clear title can be given and settlement can occur. An estate attorney will help with all of this.”

As for Realtors®, “they have to know who has the authority to make the decisions and whose interest they are acting in. Make sure you have the full story, because these things can be complicated. Be patient, and know when it’s time to ask for legal advice,” said Cardone.

Sanderson added, “Most of all, be prepared to manage the emotion of the situation and work the seller through any hurdles or issues with skill and compassion. They may need your guidance on property clean out, repairs, etc.”