Selling a deceased estate can be heart-wrenching. It can feel overwhelming having to go through the possessions of a loved one to get a home ready for sale.
As a real estate agent with experience in this area, I’d like to share the following pieces of advice on how to approach the sale of a property that is part of a deceased estate:
- Insist the executor of the will is the contact person for your agent. This avoids any confusion or argument if any of the beneficiaries decide to try to influence any outcomes of the sale.
- While waiting for a grant of probate, the prospective executor should seek quotes for preparing the property for sale. This might include fixing up a few problems, such a flaking paint, leaky guttering, a cleaning service and so on. This can help you to understand what parts need to be focused on and develop a plan.
- Ensure the executor uses the services of an accountant or financial adviser to ascertain all taxes payable as a result of the sale. These should be made clear to beneficiaries upfront to avoid disappointment once the property is sold.
- Almost every agent will know this, but . . . make it clear the property cannot be sold until a grant of probate is issued. If an agent has interested parties on their database, you may need to tell them to cool their heels for a few weeks. That’ll avoid disappointment down the track.
- Price discussions should be between the executor and the agent. It’s important that realistic estimates are shared with the beneficiaries by the executor.
- Agreement among beneficiaries on instructions for the agent is essential as an executor must sign a contract that outlines the method of sale, lowest-acceptable price and the commission that the agent is to be paid.
- Costs come with any property sale. So make sure it’s agreed who would pick up immediate costs.
- Make sure the property is well presented, as this will maximize your return. However, talk to your agent about how this can be done at minimal expense. If that means advertising as a “renovator’s dream”, then you should consider this as a legitimate option. Why? Because it’s unlikely multiple beneficiaries will agree on how much and on what to spend any money to make repairs.
- If you’re selling a period home, don’t update it. Period homes hold their value and are highly sought-after even in a flat market.
- The executor must handle any negotiation that an agent mediates with a potential buyer. A range of decision rights, such as a price range or length of settlement, should be decided upfront to avoid any confusion or argument between beneficiaries.