You have a situation where the real property you are managing needs to be sold and is full of personal property and trash. Completing a trashout and cleaning the property costs thousands of dollars. The estate or trust does not have the funds to pay for these services.
Your agent may offer you to sell the property “As Is”, with all of the debris and personal property to be included in the sale. The standard verbiage of the C.A.R. purchase agreement states that “all debris and personal property not included in the sale shall be removed by Close of Escrow or at the time possession is delivered to Buyer”. This term can be negotiated and addressed in a counter or addendum, stating that the seller will not remove the property’s debris and personal property. However, marketing a property in this condition will not appeal to owner-occupants, who typically can offer more than investors.
Investors will use this condition as leverage to offer less. Since the property is full of debris and personal property, investor buyers may not be able to determine what the floor and walls look like, what damage exists, or if there’s mold and water damage, which will affect their bottom line. This creates added risk that they are required to take, which does not result in the highest and best offer.
Alternatively, my firm’s network of vendors can handle the trashout and cleanup, and the estate or trust can pay for their services through escrow once the property has sold. This includes the services of an organizer who will sort through the items, create an inventory list, determine the value of these items, and facilitate the sale of the valuables. This approach maximizes the property’s value for the estate while minimizing your liability.
For more information about this or other probate real estate related topics, please contact me at 323-606-1919 (call or text).