This project almost didn’t happen…
When we spoke with this New York State-based executor (who was also an attorney), he had pretty much settled on selling this home to an investor buyer for $350,000. After some dialogue, the executor (a bit reluctantly) agreed to meet us at the property on a weekend when he would be in town.
We met with the executor at the property for our unique Max The Estate™ Consultation. At the consultation, we mentioned to the executor that it’s almost always a sure money-loser to sell to an investor identified through a mailing and that it’s MUCH better to utilize our InvestorMax™ process when going the investor route.
After talking a bit, it became clear that the estate didn’t need the sale proceeds immediately (which is almost the only reason to sell to an investor in the first place). The executor was willing to invest some money into the property and ultimately sell it to a retail buyer if it netted the estate significantly more money and if we could make it happen without him needing to be on-hand at the property. We assured him that both objectives could be met, and the path forward was set.
For the property to be sold to a retail buyer, it needed a pretty involved cleanout. Then, to maximize the sale proceeds, the home needed a moderate amount of work; two rooms and a hallway painted, a popcorn ceiling removed, stained ceiling tiles in the basement replaced, some electrical work, some heating work, and, curiously, the replacement of one half of the garage ceiling which was missing and which was required to get a certificate of continued occupancy to sell the home to ANY buyer. The all-in budget was $13,000.
We got the “go ahead,” and we got to work. We orchestrated and supervised the cleanout, proposed contractors, and solicited bids for some of the work (the executor chose from our contractor choices), and we supervised the renovations. We also did some of the minor work with our related renovation unit because that was the most cost-effective route.
Finally, when the work was done, we coordinated with the town for the relevant inspections needed to sell the home, and as a result of the town’s continued occupancy rules, we took care of another few minor code items.
Once the home was ready (a few weeks), Silvina placed the home on the market. She received seventeen offers within four days, and the executor chose an offer of $565,000.
After deducting $13,516 in renovation costs (it went a BIT over budget), the gross to the estate was $551,484. There were sales costs of $28,250 (that wouldn’t have been incurred in a sale to an investor), so the all-in costs to sell the home to a retail buyer were $41,766. Deducting that number from the $565,000 sales price left the estate with a net of a bit over $523,000. Taking that $523,000 and subtracting the offered investor price of $350,000 (which the executor was set to accept had we not spoken) and the increased proceeds to the estate were a bit over $173,000.
We didn’t chart this, but our guess is that all-told we saw the executor three or four weekends while he was at the property going through records and sorting out items that the family wanted to retain. He was totally hands-off with regard to the work being done to the home.
In the end, like most of our successful outcomes, this executor had faith in us and gave us the freedom to just take over and do what it took to get the job done.
$173,000 in extra proceeds. Three heirs. Do you think that the executor was a hero in the family’s eyes?
We hope so – that’s what we’re all about!
OMG! Silvina and her team go so far above and beyond what we ever thought a real estate agent could or would do. After my mother passed away leaving us her house full of happy memories and stacks of bills from 1982, my sister and I delayed months trying to figure out how to empty the house and sell it. My sister is local but I live in NY more than 200 miles away. Then we met Silvina (cue celestial music). She told me that she specialized in estate sales. What an understatement! Silvina arranged for a professional organizer–worth every penny and more–who kept us focused and on task while remaining sensitive to our grief. She helped us tackle each room and closet–sell, donate, trash. 7 truckloads of trash later (pick up and disposal arranged by Silvina), the house was ready to stage but not before Silvina hired the necessary people to take care of repairs, painting, and a deep cleaning. We stopped by the house unannounced one day and found her working with the crew. Really? Who does that? Silvina Foley, that’s who! She knows what is needed to get a CO and made sure we had done what was necessary to pass the first time through. She staged the house so perfectly, the eventual buyers asked to purchase the furniture along with the house. Before we found Silvina we had been considering just selling the house “as is” with all its contents to a flipper just to avoid the overwhelming tasks I just described. I am so glad I took a call from Silvina first. We sold the house for nearly double the price we thought we might get from a flipper and had the great pleasure of working with Silvina. She is a kind-hearted, hardworking, thoroughly genuine and lovely person. You could not find a better real estate agent to help you through the process of an estate sale.
…A testimonial from one of the heirs on this project