How Do I Sell My Parent’s House?
When your parents need care or pass away, you essentially become their business manager.
If you have siblings, you’ve just formed a business partnership. So as not to do a repeat of that childhood, post-Thanksgiving-dinner scuffle that sent Auntie’s vase crashing to the ground - well - here are some tips.
Should we keep or sell our parents’ home?
Sell & Invest
You could sell the property and use those funds to make individual investments; especially if the proceeds will be distributed among different individuals. Or, you choose to keep the house; make sure you and your siblings create a plan for upkeep (that accounts for cost and time invested), that includes who lives in or looks after the house. Sometimes that’s clear; but, often, it’s not.
My sibling wants my parents’ house
If one sibling wants to keep the home, you’ve got a couple of options.They can buy the others out; paying the fair market value (minus their share) to the other sibling(s). If that’s not going to work, you can do a ”partition by sale," which means that one sibling forces a sale even if the majority are against it and the net proceeds are divided among the owners. Under a partition by sale, a court-ordered sale is generally conducted by the sheriff’s department with a winning bid (usually) required to be at least two-third’s of the home’s value. For instance, a property that’s worth $180,000 can sell for $120,000.
We want to sell our Parents’ House
Working together to sell your parents’ home at full market value creates greater profit for everyone - a profit some children choose to invest in legacy gifts; like a family cabin, a trust fund, or an educational scholarship. Sometimes that “extra” fund can pay off a mortgage or debt, creating a fresh start. However you choose to use the funds, selling your parents’ home honors their legacy when their gift contributes positively to your life.
Should we sell as-is?
So, here’s the next question. Should you sell your parents’ house as-is or should you makes upgrades? If renovations are going to require more time or resources than you have, then skip the upgrades and resolve that a lower asking price for an “as is” property is the way to go. If the renovations are easy and can get you a higher asking price - like painting, upgrading appliances and laying new carpet - then the investment could pay off big time. That said, if the home needs a top-to-bottom renovation and time, money and band-width are at a minimum, then netting a high price at sale may not be worth the months of time on your (or your siblings) part. A Realtor-discussion can help you determine whether home-improvements (and which one improvements) will be worth your investment of time and money; and whether it will improve your sale-ability and potential profit-on-investment.
Get an appraisal.
As your Realtor, I’m going to suggest an appraisal and I’d be glad to help you get that lined up. Knowing this number will help you make decisions about sale price, whether to make renovations, as well as how much to spend (or not spend) on those upgrades.
It’s possible to over-improve your family home before putting it on the market. And, while that makes the home show well, you won’t always recoup what you spent. In some markets, builders who want to rebuild or renovate are paying more than potential home-buyers; making any improvements a waste of money. On the other hand, in some instances, reasonable improvements must be made in order to sell. And, sometimes there are a few improvements which (like flipping a house) could net you top dollar. That’s where professional advice and marketing can make all the difference; and that’s an asset I bring to the equation.
Designate a point-person.
If possible, agree on which sibling can represent the family. I’ll make sure to copy all of you on information regarding the sale of your parents’ home. But, ideally, you and your sibling(s) would talk with one another about what you want, and the designee would help to see the process through. Occasionally, we’ll all need to be on the same phone call - and facilitating that process is my pleasure. I know that dealing with real estate transactions on behalf of our parents carries a lot of differing emotions. It’s not easy.
It’s my goal to make caring for your parents’ house easier than you thought - with clear guidance that nets you the best offer - and creates a legacy gift that honors your parents.
Download eBook
There are so many things you’re probably finding yourself having to deal with, beyond just the sadness of your loss. It’s hard to ever be entirely ready or prepared for everything that has to be thought about and addressed.
We’ve compiled this eBook to suggest where to start, when handling a deceased loved one’s estate.
Contact Laura Lee Berger
Let’s Talk About Selling Your Family Home
As a Real Estate specialist and trusted adviser, I help families make sure their family home is ready to sell at the best price possible. If you’re not from the Twin Cities, but have a family home here, I know that making decisions during a difficult time can be a challenge. I provide experienced advise, recommendations, and referrals when needed.
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6 Things You Can Do Now
Get Organized
While it’s difficult to talk about cleaning through records before a crisis, most parents will understand if you explain that sitting on these records (bank statements, policies, investments) make their estate vulnerable. Let them know that you want to make sure that documents are properly disposed of (take them to a shredder like Office Depot). Start now. If your parents have already passed, I know it’s hard, but go through their files carefully; you never know what you will uncover.
Hire an Appraiser
Prevent hard feelings or regret by hiring an appraiser. I can help you do this; it will be well worth the $100-$250/hour to get this done. Before you start tossing or giving things away, your appraiser can suggest the best way to get top dollar for your parents’ property. During this time, it’s also best to reach out to family to learn whether there are specific items of sentimental value that they would like to keep. And, before you let all of the furniture and décor go, let’s do a walk through so I can suggest which items could remain for staging the house and expediting a sale. Usually a house shows better when it has some furnishings. If your parents didn’t already designate an estate attorney, you’ll need one to help you transfer assets to named beneficiaries and in order to get a “license to sell”and put the house on the market.
Start Cleaning
Set up a few cleaning days or weekends, bring in cleaning and yard-work supplies, a dumpster and a moving truck - for relocating or donating items. Plan to hire physical labor or recruit family members to get the house ready. If you’re not currently living in the Twin Cities, I can connect you with trustworthy Twin Cities’ resources. As people age, sorting through resources becomes a rather large challenge and everything seems worth keeping, making the sheer volume of stuff to be cleaned through an often daunting experience. Having a team to help, makes the process easier.
Start Decluttering and donating
Unless your parents have a home filled with furniture or art that’s hundreds of years old, used furniture and china have very little value as most have fallen out of fashion and are difficult to sell in any venue. The exception will be vintage 1960’s clothes and furniture (when in top condition). When making donations, remember to check pockets and pocketbooks for hidden treasure.
Plan to Dispose
In the Twin Cities, there are a lot of resellers and charities that take donations; there are also liquidators (who keep items they think they can sell in exchange for clearing the home). And, while I’m a big believer in up-used items, you should know that most charities won’t pick up, and most re-sellers will give you little for most items from older homes. So, don’t forget to rent that dumpster to help you make fast work of the un-sellable and un-donatable items (about $500 for two weeks). Hazardous materials (fertilizer, paint, chemicals, old televisions, and computers) have additional disposal fees.
Talk with a Realtor®
Sentimental feelings are normal; especially when we’re feeling a bit raw from decisions and challenges surrounding care or the passing of our parents. Those can be moments when “any solution” will do, just so we don’t have to think about it anymore. But choosing a family friend to sell your parents’ home (especially someone who doesn’t have a large Twin Cities network) - can mean selling at under-market value, simply because strong representation was lacking. I’ve seen houses sell for as much as $100,000 under market value by a family friend who was doing a favor. Serving your best interests, your preferences and your family - is the best favor around. And, I would be honored to talk with you about what that looks like.