Estate Owned Homes

Grown children frequently have fond memories of growing up in a property and remember all the hard work their parents did to maintain it.  Their parents may have paid $50,000 for a property that is now worth $500,000 and would have been thrilled by the appreciation. The children are more likely to focus on  recent home sales and may view their childhood home with rose colored glasses. 

I recently became executor of my mother's estate.  My mother wasn't particularly wealthy, but it's still a big job to gather information and complete required paperwork.  I'm relieved she didn't have any real estate to sell.

I have acted as a agent for both buyers and sellers for estate owned home sales, and have concluded that  it may be harder for the children of deceased parents to sell a home than it would have been for the parents to do so themselves. 

I once represented a young couple buying their first house which was an estate owned property. The price they paid was fair, but the seller thought it was a little low. He decided to sell his parent's home to the couple because they wanted to restore the tiered backyard flower garden that once was magnificent.  That flower garden was his mother's pride and joy and he was pleased by their plans to restore it.  At settlement, the seller broke down and cried.  He was saying goodbye to his childhood home and his memories, but trusted the buyers to take good care of his family home.

When I took the Senior Real Estate Specialist (SRES) course, I found that my instructor specialized in estate home sales.  At first that sounded like a great specialty.  Business is referred to him by attorneys trying to settle estates in which the heirs are disinterested or uninvolved.   As the agent, he is able to set the price at a saleable level  and, because the properties are empty, there is no problem with potential buyers being able to schedule appointments.

At first that sounded like a great specialty, but nothing is as easy as it first appears. My instructor went on to explain that he sometimes has to get homes fumigated because the owner is found dead in the property.  Elderly people sometimes are unable to maintain or clean their properties; so, he sometimes has to deal with unsanitary situations including removal of  insects and rodents.  Because he has been able to handle these types of situations quickly and effectively, he has developed a reputation with estate attorneys. and continues to get referrals.

My only suggestion for buyers who are interested in an estate owned property in which a family member is the executor, is that it may be hard for the sellers to let go.  If the executor thinks you appreciate and maintain the property, you are more likely to come to terms with him or her on price and conditions.

For sellers of estate properties, try to be realistic about your childhood home.  To maximize the eventual sale price, make sure it is clean and  in good repair.  It's still a tough market and you are likely to be competing for buyers with sellers of newer properties. Your realtor can help you  price the home correctly, but if it have doubts about the proper price, or if the home doesn't sell in a reasonable amount of time, consider getting an appraisal and list the price close to the appraisal level.