The Trusts & Estates Division of Christie’s International Real Estate Group offers a truly unique set of skills and services tailored to the needs of trustees, families, trusts & estates attorneys, elder law attorneys, and guardians. We are headquartered in New York City, but work with properties around the world. We can handle all the details of trusts and estates property sales, from clean-out to moving, inventory of goods, distribution of the goods, property preparation and much more – substantially reducing the burden on families, attorneys, and financial representatives. We work closely with the Christie’s Auction House, and we can advance funds interest-free for property preparation.
Selling Estate Properties
Are you considering the sale of a property owned by a trust or estate?
Begin by recognizing that the process and emotions may be complex, and can lead to financial and legal hazards if not handled properly. Too often, trustees, executors, family members, and even professionals skip important steps and move too quickly toward a property sale (or transfer to an heir) without understanding the issues. Here at the Trusts & Estates Division of Christie’s International Real Estate Group, we work closely with families and their representatives to ensure proper handling of the many details in the sale of an estate property and the disposition of goods. To get you started in the right direction, we’ve put together some essential steps—and frank advice—to ensure a smooth sale for maximum value while avoiding costly problems and lengthy delays.
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Essential Steps for Estate Property Sales By Howard Morrel & Leslie Hirsch Co-Founders, Trusts & Estates Division | Christie’s International Real Estate Group
From our extensive experience, we have learned that taking these steps in the proper order is vital to get optimal results with minimal issues and expense.
All the Best, Howard Morrel & Leslie Hirsch
Co-Founders, Trusts & Estates Division Christie’s International Real Estate Group
Get Legal & Estate Clearance Well Before Listing • Ensure stakeholders are informed and family issues are worked through gracefully beforehand. Don’t surprise beneficiaries by going to market without everyone’s knowledge. • Probate or court clearance: Work with your attorney to get court approval if the estate is in probate or held in a guardianship. • Title clearance: Ensure property title is free of liens and encumbrances; gather mortgage documents; conduct a lien search. In the case of an estate-owned property, when there may be unknown factors at play, this process should be completed before listing. • Board approval (co-ops/condos): • Especially an issue in New York City: check building requirements for selling. • Locate co-op stock certificates or arrange for co-op title insurance. • Make sure your agent can help with preparing board “packages.” • If legal and emotional issues are not addressed before listing, substantial delays and expenses may be encountered later on. Create a Clear Path for Proceeds from a Sale • When property is sold from a trust or estate , the proceeds must follow strict guidelines for deposit to avoid potentially significant tax or other issues—such as endangering public benefits for a beneficiary, triggering liens from creditors, and the like. • Work with your attorney, CPA, & financial advisor to define the correct path for the proceeds of a sale to avoid tax and legal issues. • Guardians may need court approval not just for a sale but for the path of the proceeds. Planning & Timing the Sale • Selling at the wrong time or ignoring market trends and conditions can drastically reduce the sale price without you ever realizing it—or even lead to legal issues with beneficiaries. At the same time, of course, costs may mount as a property remains unsold. • A knowledgeable real estate agent with experience in your market, as well as in dealing with trusts and estates, can provide insights on the best time to list the property—taking into account legal encumbrances and local conditions. Sometimes waiting just a bit, or expediting the listing to coincide with a strong market can lead to much better returns. • Make sure to factor in property preparation time. It may take months to declutter and prepare a property. Set a deadline and work toward it. Don’t go to market without this preparation. • Keep stakeholders informed. The sales process may take a good deal of time. Have a plan for keeping beneficiaries and other stakeholders updated on progress. Inventory, Declutter & Remove Personal Items • A reliable inventory of goods within the home is crucial and often legally mandated. • Sort belongings into four categories: distribute to beneficiaries, donate, sell, or discard. • Depersonalize: Remove personal photos and memorabilia. • Hire help: Consider professional services for inventories, security, cleaning, valuations, restoration, selling, packing, organizing, shipping, and storage of valuable possessions, if needed. Here at Christie’s, we have trusted local partners for this kind of work.
Howard Morrel & Leslie Hirsch
Establish a Team • If the value of the real estate is significant, put together a team consisting of a qualified estate attorney, financial advisor, CPA, and specialized real estate agent with local knowledge and credentials in trusts & estates sales. In some situations, such as guardianships, legal registration of the real estate agent may be required. • A trusts & estates property sales specialist can advise you on all steps going forward, engage directly with your attorney and financial advisors, handle much of the required effort, and work patiently through legal processes, which may take considerable time. ELEVEN Essential Steps for Estate Property Sales
ChristiesEstateProperties.com
Trusts & Estates Division | +1 212.956.4823
ELEVEN Essential Steps for Estate Property Sales
Appraise, Distribute, or Sell Valuables • Professionally appraise potentially valuable items before distributing them to heirs as part of the dissolution of an estate. Christie’s Auction House is a wonderful resource to appraise and sell items, and we can make recommendations for other companies to handle specialty items and items of lesser value. Assess Repairs & Maintenance Needs • Single-family homes: Consult your agent about a pre-listing home inspection to identify major repairs, but the decision about a formal inspection before listings and showings is a difficult one, given the requirements for disclosure to potential sellers. Consult with your expert agent before entering into the assessment and repair process. • Do, however, fix all visible issues: For example, a leaky faucet, cracks in walls, broken or dated appliances. People are put off by even small things during a visit, and it is always more cost efficient to make these repairs instead of discounting the sale price or giving a repair credit to the buyer. Enhance Curb Appeal • Single-family homes, multi-family homes, and commercial properties: Improve landscaping, exterior paint, driveway, and yard condition. Repair broken stairs and lighting. Remove old curtains and paint window frames. Remove any items visible from the windows. Consider adding decorative touches to the exterior, such as a statement color to the front door or nice planters, as an inexpensive way to enhance curb appeal.
Do a Final Deep Clean Using Professionals • We all know the value of first impressions. Failing to present an immaculate home to potential buyers is a fast track to an underwhelming offer. Don’t risk it. • Hire professional cleaners for a final, thorough cleaning before staging. Professional cleaners are worth the expense. A deep cleaning can help to remove musty odors and enhance the viewing experience of prospective buyers. Stage the Property for Showings • Staging matters, a lot. But don’t try it before all the previous steps are complete. • Use neutral colors and minimal furniture to create an open and airy space. • We know that professional stagers are worth the extra up-front expense , every time. If the estate has a limited budget, our team can work with the furniture that is already in the home. • It’s generally much easier to stage and show if the property is unoccupied. Prepare for Showings & Open Houses • Ensure the property is spotless before every showing. Make sure it smells fresh and is ready for flexible scheduling. • For apartments, your agent should coordinate with building management to ensure smooth access for potential buyers.
To learn more, visit us at ChristiesEstateProperties.com, call us at +1 212.956.4823, or email info@ChristiesEstateProperties.com
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ChristiesEstateProperties.com
Trusts & Estates Division | +1 212.956.4823
The Trusts & Estates Division of Christie’s International Real Estate
Group offers a truly unique set of skills and services tailored to
the needs of trustees, families, trusts & estates attorneys, elder law
attorneys, and guardians. We are headquartered in New York City,
but work with properties around the world.
We can handle all the details of trusts and estates property sales,
from clean-out to moving, inventory of goods, distribution of the
goods, property preparation and much more – substantially
reducing the burden on families, attorneys, and financial
representatives. We work closely with the Christie’s Auction House,
and we can advance funds interest-free for property preparation.
Contact us with the information below or visit our website at
ChristiesEstateProperties.com to learn more.
Tel: +1 212.956.4823 | info@ChristiesEstateProperties.com ChristiesEstateProperties.com
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