When it comes to probate property, a lot of chatter revolves around the buyer – how to buy and flip it for a tidy sum, the pitfalls associated with probate property buying, how to outgun other bidders in the vicious probate real estate firing range, what to look for when buying probate property, and advice that comes in all forms and colors.
Not much ink has been poured related to the seller, and it seems – we often forget – that the property might have been bequeathed to an heir, whether apparent or presumptive.
We’re probably guilty of it too, but considering we haven’t been populating our blog with this kind of stuff much, perhaps not a lot.
Our resident blogger has been juicing vegetables and feels energetic enough to tackle the subject, so probate property sellers, worry no more.
The Oft-overlooked Aspect
Speaking of forgetting…
When selling probate real estate, every seller wants to fetch as much as they can from the property. Obviously. Most times, the heir is keen to base their asking price on two factors in particular: either the original worth of the property or the price they would like to get.
Which is not a bad thing as no one wants to undersell. What seems to be forgotten when determining this price though, is the amount the prospective buyer would be willing to shell out.
The upshot of inaccurately setting an asking price too high is that it could lead to your property lying idle on the market for, well, heaven knows how long. The irony is that this could even lead to a slump in prices down the line, depending on the prevailing market health of the day.
The long and short of it is that if you are looking to dispose your probate property in a reasonable enough timeframe, realistic pricing is key.
Spoilt for Choice
Setting a high asking price can be a tantalizing prospect for real estate sellers, whether the heirs themselves or estate representatives. What they often forget in the thick of the colorful imagination is that merely asking for a certain price is not a surefire indication that they will get that amount. Matters not how long they are willing to wait.
The housing market has evolved a great deal in the last decade or two in the sense that buyers are spoilt for choice. Don’t misinterpret this to mean there is a housing glut through and through. Rather, it means that if a home is overpriced than others in the area code, chances are buyers may not even grant it a second thought.
In fact, overpricing your property will only play to your detriment. As little as 5 percent above market value and potential buyers won’t even consider it in most cases.
And statistics have shown time and again that the longer your home is on the market, the less you are likely to fetch for it.
A Local Experienced Realtor could help
This is why real estate agents or firms like us exist: to unlock the deadlock situations for you.
However, it is advisable to choose a professional realtor with particular expertise in your area. These will often let you know your property’s worth at any given time. Interview a few local ones to ascertain who is best placed to market your probate property.
Born and bred in Chicago, Illinois, we at Master Homes LLC possess intimate knowledge of the neighborhoods around the state. We have witnessed the tremendous growth the local real estate market has undergone through the decades. In fact, our firm was born out of the need to be a part of this development, and that desire to want the best for the city we grew up in.
See, after working for several real estate companies across the state and seen the way they have improved the cities they are based in, we felt compelled to go back to our hometown of Chicago and make a positive impact. One thing led to the other, and here we are!
We have and continue to put our years of experience to positive use by helping clients in Chicago to assess their home value (probate property or not) accurately and promptly. Think of us as that realtor who shares your yearning for a quick turnaround time in the sales period which, we believe, increases your chances of completing the sale at a reasonable timeframe while securing the best possible value.
Regardless of locale, the best real estate agents know all too well the perks that come with listing a property at a competitive price. So resist the urge to choose that agent who promises to secure you the highest price for your property. Chances are, that is hot air. Hogwash. Complete jive.
Don’t Underestimate the Cost of Upgrades
Most probate estate sellers tend to underestimate the cost of home upgrades.
As much as renovations help to increase the value of a property, this is a cost often overlooked when selling the house.
Take an example.
Assume you fork out $15,000 on improvements (out of pocket) prior to listing the house on the market. After selling, what you are left with on top of the principal sum is $10,000. It may look like a profit, but in cost-versus-value speak, that’s a $5,000 loss. Looking at homes across the spectrum, as opposed to just probate properties, some remodeling jobs offer a better return than others.
Of course, this is not to dissuade against carrying out repairs. If the property is need of minor repairs such as painting, general cleaning and minor maintenance, it’s always a great idea to cross these off the list before putting the house on the market as they help secure a higher (and faster) sale.
If you are not sure, you can always chat up a local real estate agent about the conundrum.
Probate property sellers fall into the temptation to ‘wait it out’ until a good offer comes along. It is tempting, no doubt. But in a slow market, any offer that comes close to your target price is worth considering.
Keep in mind that any offer is negotiable, and you may end up haggling it a little higher closer to your target. Just make sure you have done your homework good, and let your price decision be well-informed, rather than playing wishful thinking.
That said, as long as your probate property is on the market, don’t dismiss any offers you may get.