#What #is #an #estate #in #real #estate
What is an estate in real estate
what is an estate sale and what should I be aware of?
An “estate sale” means a person has died and the party/parties that inherited the property are selling it. “Estate condition” is a euphamism to gently say that nothing has been updated in a very long time and that the property probably needs updating and renovation. An estate sale may or may not be in estate condition. Estate properties usually are priced well to reflect that fact that they need work. Another “hidden danger” so to speak is that if there are multiple parties involved, they may not always agree on what price or terms they’ll accept and there may be delays in responses due to their needing to negotiate among each other, though hopefully that is not the case.
I would strongly suggest you use an experienced agent to work with you and help you get the best price and terms.
Thanks for explaining that bit of real estate jargon. “Estate condition” is a term that I often see in listings. I suspected that it was a euphemism, but I was unsure of its meaning. A little updating and renovating doesn’t scare me, so I will not shy away from properties that are in estate condition.
An estate sale is when someone opens up their estate (usually a home or condo) with the intent to sell all their stuff quickly and for the most money possible. This website does a good job of describing it in much more detail:
While I usually work with buyers, I once had the opportunity to work on the other end of what was virtually an estate sale. I say virtually because the lady who lived in the apartment was a close personal friend of a buddy of mine. Here’s a little about my experience and the situation as it happened.
A good friend of mine approached me as I was dining at a local restaurant here on the upper east side, and asked me if I was interested in handling his grandmother’s estate sale. This was a bit of a shock to me because he was acting as if everything was fine, but meanwhile this was the first I was hearing about his grandmother’s passing, or so I thought. What he really meant to say was that his grandmother was voluntarily moving to an elder care home, and he was put in charge of liquidating her estate to raise money so they can afford to get her the best care possible. After I caught my breath, I told him I would be more than happy to help. We set up an appointment for me to see the apartment that week, and much to my surprise, it was in fairly good condition. While it was true of most estate sales, that there were no significant upgrades done to the interior of the apartment in a long time, it was definitely in livable condition. This is the first misconception about estate sales, and is why I mentioned it. Most estate sales do involve an apartment that is in poor to fair condition, there will be the occasional property that is well-maintained and with new modern fixtures.
After I got the little loose ends in the apartment repaired, such as making sure all the light bulbs matched in a room, tightened handles on drawers and cabinets, the unit was put on the market at a slightly lower than market value price, for a quick sale. As it turned out, a few people showed up to the first open house with their own Buyer’s Brokers, which I always recommend buyers have their own representation. By the next day, we started to receive offers, and the apartment, because it was not in unlivable condition, sold for a fair market-value price.
Anyway, that’s my story and I’m sticking to it, LOL. If you should have any further Real Estate questions, I am happy to help.
Senior Real Estate Sales Associate
What you need to know about any estate sale property is EVERYTHING there is to know about it. No two properties are alike, going on the assumption that because the property is part of an estate and therefore is a great deal may cloud your judgement. Have your attorney and your agent do complete due diligence before moving on it. Treat it like any other property. As far as the condition is concerned, adjust the value accordingly.
An estate sale is where an owner (often an Heir) decides to sell most, if not all, of the belongings owned by them. The estate sale typically takes place in the home of the owner (deceased or not) and can be a great tool for someone who is looking to downsize in order to move to a new location, like a nursing home. More often than not an estate sale company in your local area is contacted who will typically handle the light cleaning, pricing, staging, promoting and selling of the items in the estate.
Here is an email that I recently sent to a client:
Greetings Ms. ,
First, thank you for emailing us! Second, I would be more than happy to discuss the in’s and out’s of the estate sale business. However, there is so much that goes into it that what I provide below will be a cursory overview of the process. Keep in mind too that located on our website there is an Estate Sales 101 tab that will provide you with a great deal of information on estate sales. Also please keep in mind that I am not familiar with your situation therefore some of this information may not apply to you specifically.
Typically when I meet with a client it is to either downsize their estate because they are moving and want to leave most, if not all, of their items for sale. The other situation is because there has been a death in the family and their family member(s) have decided to sell the belongings in the house.
Once I receive a phone call I schedule a meeting so that I may view the estate to make certain that an estate sale would be a good fit for both the client and for my company. I bring with me a folder containing a great deal of information about A Belle Estate Sale, an example of Before and After pictures, a company profile, a list of suggested questions to help you receive the information you need, and a contract. At the first meeting I would discuss the contract and what each other’s expectations are so that we can see, beyond your items, if we are a good fit as well. We believe the relationship between client and estate sale company is a symbiotic one!
A Belle Estate Sale operates a bit differently than most estate sale companies. I have made it a primary focus for the company and our employees to have balance in their lives and as such I do not “slam” estate sales back to back in order to maximize company profits. In my experience it has proven better to pick and choose no more than two estate sales per month. The reasons for this are threefold: 1. Marketing is of extreme importance and from the moment the client signs the contract I immediately begin to take pictures and get the sale listed; more time for marketing equals more income for all concerned, 2. By only scheduling two estate sales per month my appraisers/pricers take the necessary to properly price items, which also maximizing income, and 3. each of my team members have families and I want them to have balance in their personal and professional lives. By setting a limit to the number of sales, my team looks forward to our next adventure, because we do truly enjoy what we do, instead of dreading next week because it will consist of an 80-90 hour work week. We honestly enjoy what we do and want to keep it that way.
Estate sale companies will offer a range of options depending on the particular situation, including cleaning before the sale, clean-up after the sale, different marketing strategies, different commission rates depending on the dollar value and volume of items in the house, etc. etc. In order to offer you a percentage my partner, Mr. Posey, and I would need to evaluate the estate. It might be easier to have a blanket percentage that we offer but this would be a disservice to our clients as the estate may be of higher value which would allow for a lowers commission percentage. Further, if we offered a blanket percentage we would not necessarily be competitive with the market.
If the client and the company decide this will be a successful venture together, the team begins to clean, photograph in detail items, itemize the house, research and price the items and begin contacting our buyers to let them know about the sale. Our buyers consist of the following that typically goes to estate sales (which is in the 1000’s), a list of buyers who resell the items, collectors and antique stores. We do not give these people first shot at the items because we believe that the items should first be offered for the price we have on the item. However, we do allow buyers who want to pay the asking price to purchase these items via a preview sale. Once the items sale, we remove it from our marketing material in an effort to not mislead other buyers.
SOURCE: SOURCE: NEF2.COM