In for the Long Haul

I had three settlements on listings last week. Each had a unique set of circumstances and were atypical from what your standard Realtor may handle. As I reflect on those experiences, there are at least two common themes among them: longevity and expertise.

First, a brief overview of these sales:

1. A DC rowhouse, administered by an attorney as the court appointed Personal Representative of an estate for a person who died in 2006. This was also a short sale requiring bank and investor approval. I also had to appeal the sales price with the investor after ratification.

2. A split-level home in good condition in Montgomery County, Maryland, also an estate managed by two of the three adult children (all who had grown up in the home) of the deceased owner.

3. A nice sized brick Colonial in Upper NW DC with property condition challenges in FHA loan pre-foreclosure status. This one required lengthy bank approval and multiple appeals.

Next, details on staying power:

1. The attorney for the estate is one of my regular clients. By establishing a long term working relationship with her, we can work together efficiently with trust.

2. I initially had met one of the siblings in October 2016. We all kept in touch regularly. I weighed in on preparation decisions (colors, finishes, updates to do or not to do) as they made progress. Once the house was market ready, we were on the market with 3 offers and one ratified contract 6 days later and closed 32 days after that.

3. The sellers and I first met on April 7. 2017. We closed March 30, 2018. From start to finish:

• 357 days
• 84 showings
• 12 offers
• 6 inspections
• 4 contracts
• 3 foreclosure dates postponed
• 3 appraisals
• 3 walk throughs
• 1 closing

I am with clients for the long haul.... whether within one transaction or across multiple sales for a single client.

More on my areas and levels of expertise in future (and some past) posts.

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.