Sep 13 2018 48719 1

Dated: 09/13/2018

Views: 85

September 12, 2018

Buying and selling real estate can be an emotionally-charged venture, especially when it involves property that belonged to a family member who's recently passed away. It’s up to the real estate professional to provide guidance to clients who are making important decisions regarding what’s usually the biggest asset in an estate—the home.

Table with last will and testament, pen, coffee cup, glasses, and newspaper

© FabioBalbi - iStock / Getty Images Plus

But it’s not always straightforward. Take the recent death of legendary singer-songwriter Aretha Franklin, which initially posed a quandary for her four surviving sons, for example. “Because she didn’t leave a will, her $80 million fortune—including Franklin’s numerous real estate holdings—likely will take longer to divide, and the process could become complicated,” says Alex Lehr, broker-owner of Lehr Real Estate in San Carlos, Calif., and the author of The Unexpected Sale: Guidance For The Executor/Administrator Of An Estate.

To help navigate handling a house that’s part of an inheritance, Lehr offers these five tips.

Read more: Lessons From a Bad FSBO Purchase

  1. Deciding to keep, sell, or rent. Unfortunately, competing interests among siblings can make this decision difficult, Lehr points out. “Caught in the middle, the executor has to ask the heirs to keep their emotions under control and put the rational facts on the table,” Lehr says. If medical bills, tax issues, or other stressors require cashing out, then selling is usually the best option, he advises. It also produces a specific amount of money that can be divided equally among those involved.

  2. Establishing the value of the home. Whether listing the property for the beneficiaries or assisting an heir who wants to buy the house, it's important to start by giving your clients a cost market analysis and directing them to get an appraisal. “Alternatively,” Lehr says, “the executor can put the property on the market with the expressed provision that one of the heirs has the right of first refusal to match the highest offer.”

  3. Figuring out the extent of repairs needed. Often homes need updates or repairs before being listed for sale. Help clients determine how much work is worthwhile before putting the home on the market, which will depend on the property and circumstances, Lehr says.

  4. Deciding to sell furnished or unfurnished. Beneficiary clients not only have to make decisions about a property, but also the possessions inside the home. “It’s not unusual for an inherited home to be filled with a 30-year accumulation of stuff,” Lehr says. He generally recommends thinning out furnishings and offering a more limited number of pieces with the property.

  5. Determining if an investment property is realistic. If your clients are leaning toward keeping the home as an investment, they need to make sure the viability of the relationship between the beneficiaries will last long-term. “Could they get divorced, go bankrupt or bring other entanglements?” Lehr asks. The real estate professional must also help them consider the local rental market and what it will take to maintain the property, he says.

Source:  Alex Lehr,lehrrealestate.com

Want to Advertise on this Site?

Latest Blog Posts

A Guide To Home Insulation Materials

Insulation is one of those building products that you never see, because it is usually covered up by something else. But if you don't have enough, or if it is installed incorrectly, you're wasting

Read More

STOP RENTING FIRST TIME HOME BUY WITH NO MONEY DOWN WITH GOOD CREDIT

RENTERSStop Paying YourLandlord'sMortgage.Free Report reveals HowEasy it is to BuyYour Own Home.Free recorded message1-844-877-8814ID# 1001TEXT ME AT 321-231-8487his new one story home features an

Read More

HOW TO SELL YOUR HOME WITH OUT AN AGENT

How to Sell Your Central Florida HouseWithout An Agent And Save theCommissionCentral-Fl - If you've tried to sell your homeyourself, you know that the minute you put the "ForSale by Owner" sign

Read More

For Sale By Owner Home Without An Agent You May Not Know The Questions To Ask To Stay Safe

Buyers need to keep a few things in mind. An exceptional buyer’s agent represents your best interests. The agent owes the buyer undivided loyalty, confidentiality, reasonable care, obedience to

Read More