Probate house - when is the right time to sell?

gemw

Hi all.


A family member passed away recently and I am the sole executor and beneficiary.

I applied for the probate myself (via online) which seemed fairly straight forward. The estate is below the Inheritance Tax threshold. I'm now just waiting for the grant of probate to be issued in the hope it was all correct.



I live 250 miles away from the house with no other family close by.

When visiting recently to do some clearing out, I had some local estate agents come by to discuss marketing the property and give me some valuations. One valued a little over what I expected it with worth, one valued it at 25k more than it was worth and the third valued it at 40k over what I thought it was worth.
Now, seeing as I don't live in the area it's fair to say I was unsure of the value of the property. I did look at previous sales in the area, but they're all so different.


Anyway, i've signed up to an estate agent and gone for a value that was bang in the middle of all three valuations. That seemed like the sensible approach.



I've told the estate agent to hold off marketing the property yet. One, because i'm still waiting for the probate, two it's approaching Xmas and three i'm not emotionally ready to let go yet.

However, they suggested I get it on the market ASAP or I will be better leaving it till January. Their reasoning is, most people wait to market till the New Year and I can try and beat the competition. People looking for houses, don't stop looking just because of Christmas.


What are your thoughts?
I'm in no rush to sell, I want to do it when the time is right.
At the same time, i'm mindful that I live very far away and the house is lying empty (and costing me a small fortune to keep it ticking over).

Sea_Shell

Personally, I'd market it at a great price for a quick sale (once you feel emotionally ready). Even if you get a buyer, the process can still take many weeks.

If you're the sole beneficiary and there's no IHT to worry about, you can do as you choose.

G_M

gemw wrote: »

Hi all.
The estate is below the Inheritance Tax threshold. I'm now just waiting for the grant of probate to be issued in the hope it was all correct.
What value did you use for the property for IHT purposes?

.... I had some local estate agents come by to discuss marketing the property and give me some valuations. One valued a little over what I expected it with worth, one valued it at 25k more than it was worth and the third valued it at 40k over what I thought it was worth.
Well you seem to have a good idea yourself what it is worth!
But surely the local agents would know better unless, of course, when valuing it for IHT you did detailed research or paid for an RICS Valuation?

Now, seeing as I don't live in the area it's fair to say I was unsure of the value of the property. I did look at previous sales in the area, but they're all so different.
Ah!

Anyway, i've signed up to an estate agent and gone for a value that was bang in the middle of all three valuations. That seemed like the sensible approach. Why?
If you want speed price it low.
If you want maximum profit, price it high.

I've told the estate agent to hold off marketing the property yet. One, because i'm still waiting for the probate, two it's approaching Xmas and three i'm not emotionally ready to let go yet.
3 good reasons to wait.
When you eventually go to market (late Jan?), re-evaluate the price.

However, they suggested I get it on the market ASAP or I will be better leaving it till January. Their reasoning is, most people wait to market till the New Year and I can try and beat the competition. People looking for houses, don't stop looking just because of Christmas. Many do. Jan will be busier.
Of course they want you to market ASAP - they want houses on their books!

What are your thoughts?
I'm in no rush to sell, I want to do it when the time is right.
At the same time, i'm mindful that I live very far away and the house is lying empty (and costing me a small fortune to keep it ticking over).

Well only you know what the ongoing costs are and whether they are affordable:
* mortgage?
* empty property insurance?
* council tax - you should get 6 months free following death of occupant?
* utilities
* etc

But till you get probate you can't sell. You can market and hope probate goes smoothly, though I understand the probate office has backlogs. No idea of timescales.....

I'd wait till Jan if you can.

HHarry

I put my Mum’s property on in the 2nd week of December. The agent suggested that whilst less people were looking, less people were also selling - so there was less competition.
Didn’t sell until the end of January, so who knows.

Don’t feel pressured into putting it on the market - it’s an emotional time, do it when you’re ready

gemw

Thanks for replies.


G_M --- No mortgage on the property. I've got unoccupied house insurance which costs a fortune with many clauses but i know it's better to have than not. I'm waiting for the local authority to get back to me and confirm I have a grace period for the council tax. They sent me a letter last week asking for information, which I replied to promptly. I have got the heating running to keep the pipes from freezing over (as requested by insurance otherwise water needed turning off and I will need to stay there occasionally to sort out prior to sale).

As for the value of the property. I mostly based my estimation on another property that sold earlier this year. That property did need more work doing to it than the one I inherited, however I suspect the estate agent who estimated the value at 40k over that was somewhat exaggerating to get my business.

Even if I market the property at 40K over what I estimated it was worth, it'll still be well below the 325k IHT threshold.

lookstraightahead

I'm in the same position as you and will wait til January. There is a backlog re probate and also we want to clear the house so that it looks nice.

gemw

HHarry wrote: »

I put my Mum’s property on in the 2nd week of December. The agent suggested that whilst less people were looking, less people were also selling - so there was less competition.
Didn’t sell until the end of January, so who knows.

Don’t feel pressured into putting it on the market - it’s an emotional time, do it when you’re ready

Thanks.


I signed up to the estate agent while I was in the area, to try and limit how many times I needed to travel back overall during the process. Ultimately, they are happy to hold out until I give them the green light.


Having never sold a house before (only bought as a first time buyer) I'm not an expert.

Thrugelmir

Start marketing the property now. Even if the price is on the high side. At least you can then gauge feedback from viewings. When I sold my late mothers house. I specifically asked the EA to let me know what viewers of the property considered it to be worth. Not knowing the local area and the property having potential developement opportunity.

The property was first listed at the end of October. Price was reduced 2nd week of January. Buyer found mid February. Sale completed end of April.

Probate was finally granted early April. Though everyone in the chain was kept informed. Which resulted in no panic attacks from those concerned.

gemw

Thanks all for your advice.


I've decided to go ahead and get it on the market now.
If I get a silly offer or no offers, I can wait till the new year and see if more potential buyers show interest. As I said, i'm in no immediate rush to sell.


My next question relates to conveyancing. I've already got a few fixed priced quotes via online and they all seem to be vastly different. I know most of the work will be on the buyers side, but I still want to make sure I get a good solicitor that won't rip me off. The estate agent has said they will also recommend a couple locally, but I've heard this can be a poison chalice?



Any tips of where I should be looking and what I should be asking?

p00hsticks

gemw wrote: »

My next question relates to conveyancing. I've already got a few fixed priced quotes via online and they all seem to be vastly different. I know most of the work will be on the buyers side, but I still want to make sure I get a good solicitor that won't rip me off. The estate agent has said they will also recommend a couple locally, but I've heard this can be a poison chalice?

Any tips of where I should be looking and what I should be asking?

Personally I'd be asking friends / colleagues for rcommendations for conveyancing solicitors near you. I know everything can be done online these days, but I've alays found it useful when buying / selling to be able to pop in for a face-to-face at some point in the proceedings to review and discuss the paperwork.

need_an_answer

Theres one sentence in your post that I picked up on....and one phrase...emotional attachment.

You've got to get to the point that you want to let go of this property...until then you are potentially wasting everyones time.

Presumably at the moment you are supporting the property in terms of utilities etc and the longer it goes unlived in the quicker it will deteriorate cosmetically....houses need heating and need living in else they go downhill rapidly.

No one can tell you the point at which to sell,that needs to be your decision and it will usually come when you decide that maintaining an empty property from afar isn't easy.
You need to reconcile your mind to the fact that whatever memories the property holds will never leave you but there does come a point where doing something about moving on will become very clear for you.

What you really don't want is to be going through the sale and then something snap that tells you to pull out...once that offer is in you need to go with it.

Whether you market now or in a few months makes probably no real difference...in your case it should be guided by when you are ready.

Theres usually a point where you suddenly realise the expense its causing you and that there are better ways of enjoying the property than chucking a few hundred pounds at it each month with no return.

Its a hard thing for some people to do,but you will get closure.

With regards to a local solicitor,do your own research...you could opt for one local to you or indeed local to the property...but pick one that lists all the costs upfront,that isn't always the cheapest headline quote.