Buying or Selling a Santa Clara Probate Sale: Don’t Let Little Things Get Blown Out of Perspective

My most recent Santa Clara probate sale has some issues.  The home is old and dated. I did as much staging and cosmetic fix ups as possible, but it is still old and dated.  The windows are single paned, the hardwood floors need refinishing, the bathrooms have old tile and one has only a bathtub and no shower, and to top it off the owner died in the house.  This is very bad luck for many of the buyers in this neighborhood.  After three weeks on the market we got a signed contract. The average marketing time in this neighborhood is 47 days.  The home had just had a price reduction and the offer was for full price at that reduced price.  Needless to say I was ecstatic. However, a few days after the contract was signed the buyer was at the house and for some reason got very worried because there was no key for the door from the garage to the side yard.  The executor of the estate only gave me one key and I was not sure if it opened that door or not.  The realtor said we had to give them a key before closing escrow.  The next day I went to the house and discovered the front door key opens that door as well. However, before trying it I told her if it did not work I would get a new key for that door.  Problem solved.

So what was really the issue here? These buyers are purchasing a Santa Clara probate sale which must be sold “As-Is”  They were willing to accept the condition of the house and the fact that there was a death on the property. However, for some reason the small issue of the key rubbed them the wrong way. This is very common in all transactions. I was guilty of it myself once when selling my own house. A $200 issue made me crazy. The real issue is that this is a huge financial transaction, and since you have so much at risk and many things that are out of your control, whether you are a buyer or a seller, it is easy to focus on a small issue where you do have some control.

But the real truth is that these buyers are getting a Santa Clara Probate for a great price and my sellers are getting a home they need to sell to settle the estate and all of the tax advantages for selling now.  So these smaller issues need to acknowledged for what they are, solvable. Someone will step up and be the grownup, hopefully one of the realtors, and let the principals move on with their major goals. This is an emotional time for all parties so do not be surprised if some small problem takes on a life of its own.

Marcy Moyer

Keller Williams Realty

marcy@marcymoyer.com

www.marcymoyer.com

650-619-9285

I See Dead People or Why is a Probate or Trust Sale Like an REO?

My sister in law as executor of the estate just sold my mother and father in law’s house.  She chose a realtor who lived in the neighborhood who also was an reo realtor without a lot of reo inventory right now. (Not an unusual situation)  She turned out to be the perfect agent for the job because of her REO background.  She took a home that was filled to the brim with things that no one in the family wanted, had it cleaned out, trashed out, secured,  on the market at an aggressive price, and sold in 2 weeks.  I couldn’t have done better myself, except I would have staged it, but that is a separate story.

Getting a probate or trust sale ready for market is very similar to an REO.  When a homeowner dies his or her personal property must be disposed.  Things of value need to be appraised for tax purposes and are distributed accorded to the terms of the will, or in the case of no will sold and the money distributed according to state law.  There is often much left over that is not of value and someone needs to trash the home out, much the same way as an REO home is trashed out.  This job is often left to the realtor. The home will almost always be vacant, and again the realtor will need to make sure it is secure.

While probates and trusts do have some differences in the technicalities of sale from an REO, many of the disclosure exemptions are the same.  The executor is exempt from the  transfer disclosure, the seller’s questionnaire, the smoke detector requirement, and signature on the natural hazard report, but not exempt from providing the report.  If the realtor knows anything about the property he or she does have a duty to disclose anything that is material.

Homes that are sold through probates or trusts are very often not perfect.  There may have been a death on the property or there could have been many years of deferred maintenance when the owners got older.  They may even have been left empty for a period of time while the owner was in assisted living or a nursing home.  Like an REO property the realtor must make adjustments to the suggested price based on these issues which are common to both kinds of sales.  (Generally the death on the property is not found in REO properties, but it can happen.)

The other big similarity is that both REO homes and trust or probate homes have to be sold.  They are not owned by people who have the luxury to test the market and sell if they get the price they want.  They need to be sold, either to settle an estate or in the case of an REO to mitigate a loss.  As a result they are a wonderful opportunity for a buyer to get a home at a great price or a realtor to get an assured sale.  Both sides win in these types of sales.

So why the comparison?  If you are an REO realtor and add probates and trusts to your repertoire then many of the skills you have learned are very useful.  If you are an investor it is a good place to look when REO inventory is not getting you everything you want.  If you are an end user buyer these homes are worth exploring because of the motivation of most of the sellers.

A Great Home in a Great Neighborhood: Santa Clara Ca Open House This Weekend

Front View

OPEN HOUSE THIS WEEKEND

SATURDAY September 4th 

AND 

SUNDAY September 5th 1:30-4:30

Are you looking for a home in an idyllic neighborhood with great schools, close to conveniences, and with plenty of recreational activities?  

If so, the 3126 Ryan may be the home you have been waiting for. Here you will find 3 bedrooms including a master suite, 2 bathrooms, and separate family room, living room, and large eat-in kitchen plus a fully landscaped 6,000 square foot lot, attached 2 car garage, and a place to make wonderful memories.  







There are hardwood floors in the living room and 3 bedrooms, pergo in the family room, a new kitchen counter and floors, new dishwasher, and fresh interior paint. The excellent Santa Clara Schools include Sutter Elementary, Buscher Middle, and Santa Clara High. (buyer to verify)  


The neighborhood includes a swim club, ample shopping, and is convenient to major transportation routes.  

Don’t miss out on your opportunity to live the “California Dream.”