Estate planning requires making critical decisions at every step of the process, and with every decision there are financial, legal, and tax implications. A house is often the most valuable asset, or one of the most valuable assets, of an Estate. A house can also pose some of the most significant challenges to someone handling the Estate of a loved one who has passed away. That chore is made easier by making good use of professionals, including attorneys and real estate agents. Selecting the right realtor to assist you in this often-emotional circumstance can make all the difference.
First: compare real estate agents and ask the right questions before hiring: Ask if your agent has previous experience handling deceased estates and how they would approach selling your property. Once you've chosen a realtor to work with, you'll quickly come to see that having a qualified real estate professional on your side has many benefits:
• An issue that can arise in regard to the sale of the home of a deceased loved one is determining the target value of the house for sale. Of course, a realtor can help in regard to valuing the house for listing and for a minimum realistic sales price; however, heirs and family members may have expectations that are different than the opinion of the realtor. Often those expectations are unrealistic, though they should not be dismissed. A good real estate agent will maintain good communication with the family and heirs, which can do a lot to alleviate the problem of dashed expectations and second guessing.
• Maximizing the value of the property to sell may require some repair, improvements to enhance the value and removal most of the tangible personal property so that the house is not cluttered. Houses are likely to need a thorough cleanup to put the house in the best shape to receive the most value for the property that is available. A good realtor can make recommendations in regard to the types of things that should be done to generate the highest enhancement in value and salability of the property.
• Persons handling estates often fail to communicate adequately because of a number of factors. In our experience, the lack of communication causes far more problems than candid and full communication. The realtor’s opinion should be communicated, preferably with a copy of the realtor’s opinion in writing. If people are not happy with the realtor’s opinion, a second opinion can be obtained. A more formal appraisal can also be obtained, but it will cost the estate money.
• Other than the title issues related to the death of the owner, there may be title issues related to encroachments, easements, mortgages and other encumbrances, and even environmental concerns. The home may be in some state of disrepair, which is not uncommon when an elderly owner passes. A real estate professional can provide valuable guidance on performing those repairs or being ready to give credits to a prospective purchaser for the repairs that need to be made. In addition, a realtor can lend assistance with standard contracts to make provision for home inspections, and some negotiation is likely to take place when the home inspection reveals the need for repairs.
• You as a Seller are not only dealing with the house sale, you may be mourning a loss and figuring out how to handle an estate — often while living in another part of the country. A realtor knows the local market. Heirs living out of state often lean heavily on real estate agents, asking the agents to check on the house and hire auction and cleanout companies, as well as painters and contractors, to get the house ready for sale. Again, having this type of resource could prove to be invaluable.
Selling a home after a death isn't like other real estate transactions. "There's an emotional component to this," said Wendy Dessanti, a Weichert agent in Tenafly. "People can be going through a hard time. They miss their parent, and they have to be making smart decisions. Sometimes it takes people a long time to deal with." All the reason to carefully select the right realtor for you and your family.
Sources: Bankrate.com; Batavialaw.com; Coldwellbanker.com. Photo credit: Freepik.com
