Comments on: Estate Sales and things you need to know while selling or buying them… http://raincityguide.com/2007/11/18/estate-sales-and-things-you-need-to-know-while-selling-or-buying-them/ Seattle's Leading Resource for Real Estate Information Sun, 08 Nov 2009 01:47:42 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Kary L. Krismer http://raincityguide.com/2007/11/18/estate-sales-and-things-you-need-to-know-while-selling-or-buying-them/#comment-212900 Kary L. Krismer Sun, 18 Nov 2007 15:53:45 +0000 http://raincityguide.com/2007/11/18/estate-sales-and-things-you-need-to-know-while-selling-or-buying-them/#comment-212900 I didn't do much probate stuff in my days as a lawyer, but I believe if the executor has "non-intervention" powers then you don't need to get the specific sale approved (but you probably do need some order authorizing the executor to sell--but that can be done early on, even before listing.) We did an estate listing earlier this year where everything was normal except for the review of an attorney and an issue that arose when one of the heirs could not be located. My area was bankruptcy, and there every sale needs to be approved by the court, and it can't typically be done in advance. So the purchase and sale agreement needs to specify that it's subject to court approval. Bankruptcy trustees are also exempt from Form 17, but a Chapter 11 or Chapter 13 debtor probably wouldn't be. The main thing from a buyer's point of view is to realize decisions may take a bit longer. For one thing, since an attorney will probably be involved in any of these matters, expect no decisions to be made on weekends. One other point on this area. I think a lot of people think that estate sales (and maybe bankruptcy sales) are likely to be at better prices. To the extent that's true it's probably just due to the condition of the property, so it's not really a deal. The only reason I know that either would be cheaper would be in the estate sale situation you may have several heirs, and for them each $10,000 price reduction might mean only $2,000 less (if there are five of them). That might make them more inclined to accept a reduced offer, depending on the circumstances. Otherwise, I'm not sure why these properties would ever be a bargain. Stated differently, rather than go out looking for estate sale property, it's probably better just to know what you need to do if you find a house you love and it happens to be owned by an estate. I didn’t do much probate stuff in my days as a lawyer, but I believe if the executor has “non-intervention” powers then you don’t need to get the specific sale approved (but you probably do need some order authorizing the executor to sell–but that can be done early on, even before listing.) We did an estate listing earlier this year where everything was normal except for the review of an attorney and an issue that arose when one of the heirs could not be located.

My area was bankruptcy, and there every sale needs to be approved by the court, and it can’t typically be done in advance. So the purchase and sale agreement needs to specify that it’s subject to court approval. Bankruptcy trustees are also exempt from Form 17, but a Chapter 11 or Chapter 13 debtor probably wouldn’t be.

The main thing from a buyer’s point of view is to realize decisions may take a bit longer. For one thing, since an attorney will probably be involved in any of these matters, expect no decisions to be made on weekends.

One other point on this area. I think a lot of people think that estate sales (and maybe bankruptcy sales) are likely to be at better prices. To the extent that’s true it’s probably just due to the condition of the property, so it’s not really a deal. The only reason I know that either would be cheaper would be in the estate sale situation you may have several heirs, and for them each $10,000 price reduction might mean only $2,000 less (if there are five of them). That might make them more inclined to accept a reduced offer, depending on the circumstances. Otherwise, I’m not sure why these properties would ever be a bargain. Stated differently, rather than go out looking for estate sale property, it’s probably better just to know what you need to do if you find a house you love and it happens to be owned by an estate.

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