Thinking of purchasing an estate sale property? For the purchaser in the right situation, this can be an ideal opportunity to obtain a property that has the physical attributes you desire, but for a lower purchase price than is often available with traditional sales. The homes have often been meticulously maintained for many years (or decades) yet lack the modern upgrades you require. You can then use the leftover budget to make the most impactful investments into the property to make it better than anything you could have though you would afford.
Why are these properties available at lower than market prices? A few reasons, all of which Matthew is happy to help his clients navigate.
First and foremost, the sellers of these properties often need to insert a subject clause that requires a grant of probate prior to the transaction completing. This can sometimes take months, complicating the purchaser’s timing on selling their own property to fund the purchase. With some creativity, there can be ways to work around this inconvenience.
Secondly, the seller may be motivated to accept an offer quickly. They may not have the time or patience to wait for better offers and they may not be able to take care of the property easily (if they live out of province for example).
Third, the property might not show particularly well as the seller is constrained by some legality in disposing of the former owner’s belongings. If you can look past some aspects that terribly date the property and use your imagination, you will be competing with fewer buyers. Some just can’t get past the look and smell of an old shag carpet.
There is also a stigma attached to homes that have recently had someone pass away in. Either for spiritual reasons or it just gives prospective buyers the heebie-jeebies.
Estate sales can be a tremendous opportunity for home buyers who are willing to get their hands dirty and think outside of the box. Conversely, they can also be plagued by costly delays. Some homes may just be considered at the end of their useful life, neglected for too long and the property better served by being completely redeveloped.
If you’re interested in this type of a property and would like Matthew’s assistance in selecting one that is more opportunity than potential nightmare, give him a call or drop him a line.