Special Considerations to Sell Real Property under Guardianship or Conservatorship

A portion of my business involves helping attorneys, fiduciaries, and family members sell real property under special circumstances, such as guardianship, estates, complex family legal situations, and even short sales or foreclosures. In my experience with court-appointed guardianship (or conservatorship, depending on the jurisdiction), here is a list of unique considerations requiring proactive, experienced handling:

• These cases are often court-appointed, so the contract of sale for the real property will require review by designated "interested parties" and court approval prior to settlement. I add in time for this step through a third-party approval contingency for the seller.
• There is no historical knowledge of the property condition or improvements.
• The property will be sold in a true as-is condition, with all as-is provisions allowed in that jurisdiction; this means no repairs, no seller credit, no full property inspection.
• There is almost always a lack of records for property maintenance and even pay-off records for past deeds of trust or mortgages. Occasionally we cannot locate the note of satisfaction for a lien placed on the property; thus we like to get title attorneys involved early in the transaction (often before listing the property).
• The property is often priced below market value, due to the as-is nature of the sale; how far below market is determined by property condition and other financial considerations of the seller. The property can still be exposed to the market to substantiate the market value to the court.
• Often there are limited or non-existent funds for property preparation prior to going on the market. Note that in future blog posts, I will discuss options to address this funding gap.
• The properties are typically distressed with deferred maintenance, with poorly functioning or broken systems, and with outdated kitchens, baths, flooring, and other decorative elements.
• Often there is extensive detritus inside the home and across the yard, sometimes including abandoned pet waste or pest infestations and their associated odors.

As an attorney or fiduciary, or even family member, with responsibilities for these type of real property sales, consider the advantages of working with an agent, like Lisa LaCourse, who is familiar with these and other related challenges.

5 Things I Love About 10703 Lexington Street

I love the details, the unexpected, the unique elements of houses I am selling. Here are the 5 Things I Love about my new listing at 10703 Lexington Street, Kensington, Maryland.

1. I love that the front door is a vibrant color both inside and out. This makes the house stand out from the crowd and gives it personality and whimsy.

 2. In addition to abundant kitchen cabinets with a custom glaze, I love the use of the end space for cookbook storage and display.

3. While so many Colonial houses in our real estate market in Montgomery County, Maryland (not to mention Washington, DC, and Prince George's County, Maryland), have typical brass chandeliers in the dining room, I love that this homeowner added a modern flair of a crystal chandelier without being too trendy or gaudy.

4. Taking advantage of an 8 foot by 5 foot nook on the upper level landing, I love how these sellers tucked in a desk and bookcase, even using an applique decoration and a clear desk chair, to create a workable home office space.

5. While I truly love many aspects of this home, and I had a difficult time finding only 5 things to highlight in this post, I do love how they landscaped the gardens to create a lush, peaceful environment.

These types of details and carefully planned touches make a house into a home.

Music Room

Sometimes a music room is that corner where the piano just fits, so you tuck the guitar stand next to it and your clarinetist uses the piano as a music stand.

Home can be small with multi-purpose spaces. Keeping it real.

Treehouse

Today's quote of the day comes from my younger daughter, Julia. I was telling her about how my clients often call me when something happens at their house to see how I can help, with advice, resources, and general support. One example I gave her was a client who had a tree limb fall through their roof during a storm. She said, "Was it just through the top of the roof or actually into the house?" I said in this particular case, the large branch had come through the ceiling inside the house so it required more repairs than just to the roof. Without missing a beat, she said, "Awesome! Make yourself a treehouse."

In this particular case, on the same day they had called, one of my contractors sent her roofer over for a consultation and quote and they received help quickly. I guess in hindsight, someone might find that humorous. Not as they can see daylight through their ceiling, however.

3 Ps for Selling

Although I did not study business at school, I have heard that there is a common set of 3 Ps for marketing. I'm not sure what they are, but I have my own series of 3 Ps for selling a home. I share these with prospective seller clients when discussing their home sale, and today, with you.

Preparation
When working with seller clients in preparing a home for sale prior to putting it on the market, my goal is to focus on those activities which address minor yet obvious repairs and which create the impression of a home that is clean, tidy, homey, safe, and well-maintained.

Proper preparation will be greeted positively by buyers when they see the home.

Presentation
In my approach, presentation means marketing and other outreach activities that aim to reach the most likely buyer for the specific property. Preparation can involve staging (light rearrangement of furniture and personal property, bringing in furniture and art to a vacant listing, or even removing items and excessive decoration or personally identifiable items), advertising, planning a welcoming and convenient open house, completing the most thorough and descriptive listing in the multiple listing service as possible, and having readily available at the house some information useful to buyers and their agents.

This last item in my best practices is to have a binder at the house with neighborhood details (recreation, shopping, mass transit, commuter routes, and entertainment opportunities), a paper copy of the disclosure package, floor plans, a list of updates with dates (even paint colors if available), any conveying warranties and service agreements, and even requests for potential offers such as submission guidelines.

Proper presentation means your listing will reach as many qualified buyers and their agents and entice them to add this house to their tour list or open house schedule.

Price
I typically begin price discussions with seller clients by suggesting to set the initial asking price at or very near the market value as determined by a detailed comparative market analysis (CMA) at the time of listing. For pricing a house, we look at the recent sales as well as the competitive houses on the market currently, as those will be the ones that the most likely buyer will see during their home search, too. Regardless of the state of the market (buyer's market, seller's market, or neutral), I recommend sellers offer the house at a price at which buyers and their agents will see value and want to write an offer.

Proper price will give buyers the incentive to put an offer together that they believe will result in a ratified contract.

These three Ps allow for focus at the time of sale and a simplified approach to conversations with seller clients.

Detritus

Detritus is not a word I would use to describe the possessions of someone else. It is truly a word one can only use about oneself. A prospective seller client used it last week to describe the contents of his house and his shed, "The detritus of a lifetime." It is a little sad when one's things reach the state of detritus. In Roget's Thesaurus, the word is found under "remainder." As in, remains, residue, leavings, scraps, rubbish, debris, end, shadow, afterimage. It is not a happy word, yet one that does come to mind particularly when I work on estates or court-appointed guardianship situations.

My message is, take care of your property, both real property and personal property. Regularly sort out your things and perform regular maintenance on your home's systems and major components. These steps will help preserve the value of your home and your long-term investment in it. I have created simple checklists that can help with maintenance and keeping your home safe and tidy. I'm happy to share them upon request. Just email or call me.

Bonnets

Quote of the day, actually quoted today (usually I'm a little behind, or it was a quote from decades ago). I was speaking to one of my buyer clients and when I told her I would follow up on a radon re-test, she said:

I know you are on it like a bonnet.

Yes, yes I am. And I actually chuckled to myself, because I am on it like a bonnet. And then I thought of Laura Ingalls Wilder and Little House on the Prairie.

And this is my new favorite phrase. Because I am good at following up on things, tracking them to completion.