So now you have a Probate or loved one’s property…now what?
What happens to a property when someone is no longer able to stay in their home and needs to move into a skilled facility or perhaps passes? Maybe you need to sell the property to have the finances to continue to care for your loved one or maybe it was gifted to you or maybe you received it as an inheritance. Now what? If the property has been well maintained, you may decide to keep the home as an investment or maybe you decide to sell it. Now what if the home is a mid-century treasure that is original in character and finishes? Who does not like strawberry wallpaper and washing dishes by hand?
Whether you are the PR (Personal Representative) for the estate, or the family member that needs to sell the property to help care for your aging loved one or the lucky recipient of the home you have some options. You may decide, after emptying the home, that it needs updating to realize the highest return or update it for yourself. What if you decide to not keep the home and do not have the expertise or time to take on the project, get the bids and oversee the project? You may wish to sell the property “as-is”. There is a very active market for homes needing renovation and you could easily sell the home quickly and have the funds for your loved one or the estate or even money to update your home if you were the lucky recipient.
Will you realize the same amount of money if you sell the property as-is? No, of course not, but you will be able to quickly liquidate the property depending on the specific situation which can relieve a great amount of stress and uncertainty. Who knows what might be lurking in an older home with deferred maintenance? Even if you have the desire to take on the project, you may still be surprised with some unforeseen items that will either slow or kill the project, cause it to take way longer than originally anticipated or put the project way over your renovation budget therefore making it unrealistic to complete. It would be good to know that, before spending time and money not to mention your emotional investment.
Selling a home “as-is” can be a great option for many. There are a few things to keep in mind should you decide to sell “as-is”.
You will not receive market value for the home.
Doing some minor cosmetic updates does not bring it up to market value, it merely makes it slightly more appealing.
Whatever minor updating you do will probably be wrong! Someone looking for a renovation “as-is” property will most likely NOT agree with your paint or carpet selection or most likely anything you do to update will be redone or ripped out in a more significant remodel in keeping with today’s styles and buyer preferences.
It is not likely a homeowner will be purchasing the property unless it is so undervalued or in a highly desirable area. Many homebuyers can finance a home purchase but may not have the additional capital to undertake a home remodel. If the home is in a livable condition a homeowner might be willing to purchase and make the improvements over time and when budgets allow.
You should be realistic with the condition of the home and its current value, don’t be greedy. There are some “newbie” flippers that may overpay for a property just to get one, however most savvy investors and flippers have a solid budget and will stick to it.
There are certainly pros and cons to selling a property “as-is” and it is always a great idea to consult with your favorite (hint hint) realtor to provide you with numbers on what you might realize in both scenarios. They will also be able to give you an idea of the amount and level of improvements needed to maximize the return so you can make an informed decision on whether you are up to the task or perhaps should consider the “as-is” option for your particular situation. Remember you will still need a PCMA (Probate Comparative Market Analysis) for the estate so be sure to make sure your realtor is versed in Probate. And to answer your question, yes, I am a Certified Probate Real Estate Specialist (CPRES) and able to help. Call me today!