What to Know About Buying an Estate Sale Home

Have you found the perfect property and it’s listed as an estate sale? If you’re like most house hunters, you’re probably unfamiliar with homes being sold this way. Therefore, it’s helpful to be very aware of the nuances so that you can decide if buying an estate sale home is the best decision for you and your family. Here’s the main information you need to know:

Meaning of estate sale

When a home is being sold in this fashion, it means that the owner has died and the property is part of the estate they have left behind. The house has not been inherited by someone else but, rather, is being disposed of along with other assets belonging to the deceased person. The executor named in the Will or, if the person passed away without a Will, the court-appointed administrator is responsible for handling the sale. In either case, the Estate Administration Act is the relevant Alberta legislation.

Main buying advantages

As you can appreciate, the executor is likely interested in having the property sold as quickly as possible. Until a new buyer takes possession, the utilities, insurance, and taxes need to be paid and this takes time and energy not to mention that the ongoing expenses can also be costly. Another responsibility for the executor is to make sure that a certain level of upkeep is maintained so that the home attracts enough interest in the market. With all this in mind, the house may be quite competitively priced compared to similar properties that are owner-occupied. Furthermore, a potential buyer may be able to negotiate an even better deal than the list price.

Drawbacks to be aware of

“as is” condition

An estate sale property may not have been lived in for a while. Depending on the circumstances, it’s quite possible that repairs are needed and some of these may be major ones. Since the homeowner has passed away, there may be no one who is familiar with the history of the home who can answer questions. Estate sale properties are often sold “as is”, so a prospective buyer should make sure to hire a top-notch inspector to check out the home and advise on what work may be required. Even if the home is in relatively good shape, it could need investment to modernize outdated interior fixtures and décor.

Court process

Another major drawback is that an estate sale takes time. In Alberta, transferring the title of the property requires that the court issues either a Grant of Probate or a Grant of Administration. The former Grant is given when the deceased had a Will and the latter is provided when there is no Will. It’s quite possible that the home has been listed for sale pending a Grant being acquired. This means that the buyer may be waiting a number of months for the transaction to close. The purchase offer should be written in a way that takes this into account. For instance, you may need a clause that extends the closing date if there is a delay in granting Probate.

Purchase agreement

Another matter that you could encounter is that the executor of the Will may be obligated to consult with other family members about the purchase price and terms of a buyer’s offer. Decedents of the deceased may live in other parts of the country and not be readily available or may have some other concerns before agreeing to the terms of the sale. Hopefully, the negotiation can proceed smoothly but it’s not uncommon for family disagreements to surface that may impede the selling process.
When buying an estate sale home, it’s extremely important to have a realtor in your corner who is experienced and knowledgeable about this type of purchase. This is where you can rely on my expertise!

Emmanuel Ajayi

Sales Representative

Contact Information

E-mail Address:

[email protected]

Office Phone:

403-294-1500

Cell Phone:

403-808-5886