The staff at Love Real Estate & Auctions understand that selling a home or commercial real estate assets after a relative’s death is often the largest and most complex part of resolving the estate. Many people sell inherited real estate to ease the financial burden of the property and inheritance tax to expedite dispersing the proceeds among multiple beneficiaries.
Managing an inherited estate after the death of a loved one often involves dealing with several complex financial decisions. If you are an executor, guardian, conservator, or other fiduciary facing these decisions, you may be aware that quickly removing the burden of inherited property is often one of the most difficult of all the financial challenges in closing out an estate.
Sell Inherited Real Estate Quickly Without Contingencies!
Love Real Estate & Auctions can sell residential and commercial inherited real estate utilizing the traditional sales method or by auction. We recommend selling inherited property by auction for a number of reasons. Beneficiaries often have the burden and expense of mortgage payments, insurance, utilities, property taxes and other maintenance costs that stacks up quickly to create an undue financial burden on the heirs and rapidly drains the estate as well. To add to this burden, beneficiaries also may face the costly and time-consuming problems that come with hiring contractors to make repairs to the property before it can be put on the market.
Take The Stress Out Of Selling Inherited Property
The traditional sales method can take months or even years to complete, however, the accelerated process of a real estate auction allows beneficiaries to sell the property quickly, typically in 30 to 45 days, with lower sales cost, with no contract contingencies and selling the property in “as is” condition, at market price. The Traditional sales method typically produces purchase contracts with financing contingencies, home inspection contingencies, and countless other contingencies that can dramatically prolong the sale process. In addition, upwards of 35% of all traditional sales fail to close due to contract contingencies, while real estate auctions contracts rarely fail to close because auctioned properties are always sold with no contingencies.
A real estate auction also creates competitive bidding to ensure the beneficiaries obtain the highest possible price for the inherited property. Beneficiaries can take advantage of the accelerated auction sales process that eliminates costly repairs, carrying costs, and expedites the closing of the estate and disbursing the proceeds. The longer it takes to sell an inherited property, the longer the beneficiaries will have to incur all the carrying costs that will result in decreasing the net proceeds from the sale of the property, ultimately impacting the overall value of the estate and net the beneficiaries will realize
It is important to recognize that if a property is vacant, the property will deteriorate very quickly and drive any potential sale price down. The carrying cost (mortgage payments, insurance, utilities, property tax, and other maintenance costs) can stack up quickly and create an undue financial burden on the heirs. The cost to carry a vacant property while it is deteriorating will also drive the potential net proceeds from a sale down 20% or more annually, therefore, vacant properties must be sold quickly to preserve the value.
Vacant properties are also prone to break-ins and vandalism and a small maintenance problem, such as a leaky toilet, in a vacant property can turn into a flood resulting in major damage and huge cost to repair. Simply stated, it is imperative to sell a vacant property quickly to preserve the heir’s net proceeds from a sale.
Contact Us Today
The real estate market is ever-changing. A Buyers’ market can become a Sellers’ market overnight. Real estate values are often determined by the season, the economy, and major events taking place locally, throughout the region and around the world. We’re here to guide you though the process and figure out which method is best for you.