The passing of a loved one is always difficult. Feeling a little lost is normal as you wonder how the world will look without that person in your life. The healing process will begin in time.
However, if you have been named the executor of the will, you will have to manage your responsibilities while simultaneously contending with your grief. It can be challenging, but you owe it to your family to do your best.
Fortunately, this is not a task you ever have to undertake alone. In this post, we will help you navigate the real estate market even when dealing with a loss.
Connect With a Real Estate Team
Few things can alleviate your burden like having a compassionate expert to guide you through it all. Not only will you have up-to-date advice on getting the best results when selling the home, but you will also have a compassionate ear and someone to listen to you.
A successful real estate team that has worked in your area for several years will also come with a professional network of vetted experts, tradespeople and anyone else you may need along the way. Having one point of contact for everything will make for an easier transition.
The first step is to find a real estate agent you feel comfortable with and who has a track record of success.
An estate sale is one of the most challenging tasks someone can ask of you, but you’ll find plenty of help in the posts below:
- What Resources Are Available When Selling a Family Member’s House?
- Do I Really Have to Update My Home Before Selling It?
- Can You Successfully Sell a House With a Stigma?
Understand the Legalities
Needless to say, there are legalities involved when selling a house you don’t own. It’s more complicated than a standard transaction, and the intent of this post is not to provide legal advice. We recommend working with an experienced lawyer to ensure all of your i’s are dotted and your t’s are crossed.
However, understanding the big picture will help you proceed. Let’s start by reviewing the difference between a Power of Attorney and an executor.
- You need Power of Attorney when a loved one asks you to sell a house on their behalf while they are still living.
- To sell real estate after a loved one has passed away, you will need to be an executor.
Estate planning is never a conversation anyone enjoys. However, taking care of these legal details in advance will make things much easier for survivors who are also carrying the weight of grief.
The last thing you want to contend with is endless paperwork and phone calls while trying to figure out what to do next. Making arrangements ahead of time will go a long way towards streamlining the process so that everyone can move on and begin their healing process.
Will Capital Gains Apply?
Taxes are another unpopular topic, but you will need to deal with it as an executor. Most assets are subject to capital gains if they have increased in value. This includes jewellery, investments and real estate.
In June 2024, the amount of appreciation subject to capital gains increased from 50% to 67%. You will have to add any profit to your income or to that of the estate.
Capital gains can be complex, and even more so when dealing with an inheritance. This is one more reason to work with a lawyer and a financial advisor to ensure nothing is left to chance.
The good news is that primary residences are still exempt from capital gains. If you keep the home as a secondary property, capital gains could apply if you sell later and the value increases.
Preparing an Estate Home
Getting a house ready for sale can be an overwhelming prospect at the best of times. It can be even more difficult when you’re also weighed down by emotional complications. This is when you should really rely extensively on your support network. When everyone does their share, no arduous tasks fall on the shoulders of any one person.
Removing your loved one’s personal belongings takes time and can be very emotional, another burden best shared by friends and family. Together, you can take the time to carefully consider what items have value, either sentimental or monetary, and what can safely be disposed of.
If you decide to invest in home improvements before selling the home, the posts below will give you some great ideas:
- Worth It or Not? What Renovations Really Help When Selling Your Home
- The Power of Staging When Selling Your Home
- Minor Upgrades, Maximum Results
Should You Renovate or Sell As-Is?
As your real estate agent assesses the property, they will likely spot areas of improvement that could help you fetch a higher price. That said, you may be limited by time constraints, especially if you do not live in the area.
Whether to engage in these home improvements or sell as-is is an option you will have to weigh carefully. The good news is that modern technology makes it easier to manage these tasks even from afar. At the very least, minor repairs, such as painting and adding curb appeal, can add a surprising amount of value to the property.
Professional staging as a final touch will help make your home even more appealing to potential buyers, potentially resulting in a faster sale and a higher price. A local real estate agent can check in on the property regularly to ensure that it remains show-worthy.
Once the background work is complete, an estate sale will often proceed without a hitch. Now that the ball is rolling, a skilled real estate agent will work with buyers and negotiate on your behalf to ensure the maximum return.
Have you been entrusted as an executor? Our caring Hamilton and Burlington real estate agents can support and guide you through every aspect of an estate sale. Reach out to us here or call 905-332-9223 to connect with us today.
