Executor Selling Property.
For an executor, one of the big jobs is organising the sale of the property. If we are handling the probate, then we can take that stress away from you. But if not, here are a few ways to make things easier, and a few warnings. You should read through all of this page before acting, or things could go badly wrong. But do make sure the property is insured as most policies will be invalidated if a property is left empty, unless you comply with strict conditions.
1) When can the executor sell the property?
Firstly, if the property is already in Trust, it may be nothing to do with the executor of the Will. The Trustees will be in charge of the property and deciding what to do with it. In most cases, the executor will still need to review the situation with a view to including the relevant proportion of the value of the Trust in the estate and completing the IHT forms which are needed where a trust exists. If this is the case, you are much better to contact us than attempt to deal with it yourself. If you get it wrong, it will be expensive.
2) Did the deceased actually own all of the property?
Another issue which can prove disappointing is where the deceased either no longer owned the house, perhaps having sold it in full or part to obtain additional income or capital. Or they could have taken out Equity Release for the same reason and only own part of the property. Step 6 will help confirm property ownership. Some peoples expectations will sadly be disappointed.
3) Get competitive quotes from multiple estate agents.
This firm will (at no extra cost to you) organise that side for you, so you can start off looking at competitive commission rates which could save thousands. Click here to visit their site.
4) Obtain several valuations of the property.
Have a chat with the top 3 agents produced in step one, and if you like the sound of them, ask them to value the property, with an asking price and the minimum price they think you should accept. Be wary of firms giving high valuations just to gain the instructions – executors sales are very popular with agents as they are certain to sell. Many other homes go on the market, then the sellers change their minds have spent lots of the agents time and money. An executors sale property WILL be sold.
You might want to suggest to agents that you will take the property away from them if they suggest going below the minimum valuation. That should make it more realistic, and show you just how high they are pitching the asking price as compared with what they think they will get for you. The bigger the gap between the two, the less confident that agent is of getting a price near the top of the range. They still might, but it is less likely, and as executor you need to balance the interests of the beneficiaries in selling reasonably soon, and your duty to obtain a fair price. Some agents will try to beat the price down so they get a certain sale in days, sometimes to a crony who may be paying well below market price. We would never recommend getting just one valuation.
5) Presentation of the Property.
Ask the agent to suggest any modest improvements which would increase the property. It is often worth spending a few hundred pounds on minor repairs and improvements. Too often people take on look at an untidy front garden or paint peeling off the front door and walk away without even going in. But it is surprising how many people want to buy a property they can do up. Unless the property sells very quickly, you may need to organise lawn mowing etc.
6) Check that the property is registered at the Land Registry.
If it is, then the legal process of selling it should be fairly easy (and inexpensive.) You can normally tell even without paying a few pounds for the actual Title documents – if it comes up, unless it says to the contrary, it is registered. That said, very often the title will not have been transferred to the survivor after the first death (if it was a couple), or a trust set up by the Will of the first to die may not have been implemented. So the Legal Title may need tidying up at the earliest possible moment, to save delays later on, which could cause the loss of a sale.
The Title Register is the document you need to see, to determine who owns the property and if there is a debt registered against it, such as a mortgage.
Whilst we don’t deal with conveyancing in house, we carry out first registrations and tidying up the Legal Title pre-sale to speed the process. Contact us on 01323 406299.