Selling Deceased Estates

Posted on 28-Sep-2010 by Hugh Jones, Synergy BSM

Managing the sale of a deceased estate can be extremely stressful. Emotions run high and the property often holds precious memories and sentimental value no sale price could ever match.

Executors appointed in the Will are given the challenging task of managing the sale and distributing funds between debtors and other family members. In many cases, these processes are unfamiliar to the executor, causing confusion, frustration and conflicting opinions.

Synergy recently assisted a client in the sale of their family estate. Over the years, the property’s value had increased to over $1million, however the décor looked aged and the family was unsure on how to maximise the sale price in a cost and time effective manner. Synergy was engaged to employ a sale strategy, liaise between involved parties and appoint the most appropriate Real Estate Agent.

Synergy also organised display furniture and supervised the marketing and Agent throughout the campaign.

After a thorough and transparent process, the property sold in excess of $1,700,000; over 30% higher than comparable sales indicated in the area.

By using Synergy’s Vendor Advocacy service, the executor incurred the same cost as employing a Real Estate Agent, but was able to achieve a greater sale price for the family, while reducing stress and adding another level of probity. The client also had access to Synergy’s specialised experience in this area.

Selling a deceased estate is different to a residential sale, so obtaining legal advice is extremely important. The stress of responsibilities coupled with underlying grief is enough to cause conflict, let alone other family members questioning processes along the way.

Howard Jones, Partner from Septimus, Jones & Lee Solicitors, gives the following top five legal tips when selling a Deceased Estate Property:

1. An executor’s duty is to maximise the value of the estate and abide by the intentions of the will.
2. The executor may consult beneficiaries but does not need consensus from beneficiaries in developing a sales strategy.
3. Full transparency and due process is prudent. Generally a public Auction is preferred to a Private Sale.
4. Work closely with the Estate Solicitor and Accountant to understand legal obligations and taxation implications.
5. Obtain a probate as quickly as possible as a Will may be challenged within six months. An estate should be finalised within 12 months of the date of death.

Synergy is often engaged by Executors disposing of Deceased Estate Property and has developed a detailed process to interview and appoint Selling Agents, prepare properties for sale and advise on sales strategy. If we can be of assistance please contact Hugh Jones on 9827 3355.