Losing a loved one brings profound grief, compounded by the practical demands of managing their estate – especially when it involves selling property. Whether it’s a family home, holiday retreat, or investment asset, the process stirs emotions and expectations from family, friends, and beneficiaries. For executors, the role often feels overwhelming: balancing legal obligations, family dynamics, and market realities while honouring the deceased’s wishes.
This guide draws from Wakelin’s years of assisting families through these sensitive sales. It outlines key considerations – from defining objectives to selecting agents – emphasising a structured approach that prioritises fairness and efficiency. By understanding these layers, executors can navigate disputes, maximise value, and provide closure without undue pressure.
Understanding the key parties
At the heart of any estate sale are two primary roles – the executor and the beneficiary.
The executor, named in the will, holds responsibility for managing the estate and fulfilling the deceased’s intentions. It’s a role laden with pressure, as it demands impartiality amid grief.
Beneficiaries, by contrast, are those entitled to receive assets, but they lack authority to execute the will; an executor can also be a beneficiary, yet must set personal interests aside.
This distinction often sparks tension during emotional times. Family members or friends may offer opinions, but the executor’s duty is to execute the will objectively, not accommodate individual desires. Clarifying roles early prevents misunderstandings and ensures decisions align with the deceased’s priorities.
Defining sale objectives
The first practical step is clarifying the property’s fate. Should it remain in the family or be sold for funds to be distributed?
If a single beneficiary inherits, transfer is straightforward – they decide to retain or sell.
With multiple beneficiaries, options include joint ownership (common for holiday homes, allowing shared use) or an investment property generating split income.
A buyout requires an independent valuation, often from a sworn valuer, to establish fair market value – sometimes two assessments for consensus.
If agreement falters, the executor may need to proceed with a sale to equitably distribute proceeds.
Defining these objectives upfront, through open discussion, sets a clear path and minimises conflict.
Timing: Legal and market factors
Timing an estate sale demands balancing legal necessities with market opportunities. Legally, probate – the court’s validation of the will – must precede any sale, resolving contests and granting the executor authority.
Delays here can erode the two-year window for capital gains tax (CGT) exemption on a deceased’s principal residence. CGT applies otherwise, potentially eroding estate value.
Will stipulations, like specific timelines, may also influence pace.
From a market perspective, it’s important to assess conditions. If values are rising it may be a good idea to hold. Or in turn, act swiftly if a downturn is looming.
Seasonal factors matter – summer suits peninsula properties for holiday appeal, while Melbourne’s inner suburbs thrive in cooler months; avoid school holidays or public breaks when buyer activity dips.
For investment properties, consider leases. Issue a notice to vacate if needed, but align with market peaks. These elements ensure the sale captures optimal value without unnecessary haste.
Presentation: Tailoring improvements to buyers
Deciding on property improvements requires careful thought, as executors aim to honour the deceased by maximising returns for beneficiaries.
Unlike personal sales, funding comes from the estate which may lack liquidity – or beneficiary contributions, so clarify this early to avoid disruptions.
Tailor works to the likely buyer profile. For owner-occupiers or investors, cosmetic enhancements like fresh paint, new carpets, window furnishings, or garden tidying add appeal and value.
However, if developers are the target – perhaps for renovation or demolition – avoid major outlays on kitchens, bathrooms, or extensions; they’ll undervalue someone else’s touches and prioritise land potential.
Assess costs against uplift: a $20,000 spend on basics might yield $50,000 more, but only if aligned with the market. This strategic approach respects the estate’s resources while enhancing outcomes.
Selecting the right agent
Appointing the agent is crucial, yet opinions from family or the deceased’s preferences can complicate choices. Executors should insist on an independent assessment to ensure neutrality and the best fit, reducing post-sale regrets.
Prioritise experience and seek agents active in the locale with strong market share, proven success in your property type (e.g., family homes or investments), and proficiency in the sale method – auctions demand skilled auctioneers for competitive tension.
Commission matters, but typically it’s best to avoid the agent with the lowest fees. Fair rates attract dedicated service, not juniors handed off to mid-campaign.
Marketing must target the buyer profile, ie. social media for younger demographics, print for established families. Selecting the right agent is paramount, and helps ensure the process is relatively stress free and professional.
Seeking support as executor
Executors shoulder immense responsibility: mediating family expectations, adhering to processes, managing finances, and coping with personal loss– often as a close confidant of the deceased.
While solicitors or accountants handle legalities, the property sale’s intricacies (market timing, agent selection) can overwhelm, particularly for first-timers.
Independent guidance, such as from a vendor advocate, proves invaluable. Without wanting to spruik our own wares, vendor advocacy services like Wakelin can provide objective advice on valuation, strategy, and execution, buffering emotional pressures and ensuring transparency.
Even seasoned professionals benefit from this support, turning a burdensome task into a manageable one that respects all parties.
ON GROUND CASE STUDY
Transparency in a sibling dispute
A few years ago, we assisted an interstate executor managing his late aunt’s eastern suburbs Melbourne home. As sole executor and one of three sibling beneficiaries, he faced complications: two wanted to sell for distribution, but one sought to buy it out. Independent valuations diverged, stalling agreement.
All parties welcomed our involvement for impartiality. We conducted a full vendor advisory: sourced agent assessments, selected the strongest local performer, and agreed on prompt timing to avoid market shifts. Minimal works – gardening funded by the Melbourne-based siblings – sufficed, presenting the property well without estate strain.
For transparency, we committed to a full auction, rejecting pre-sale offers. On the day, the interested sibling bid, but was outpaced by two external parties, pushing past reserve.
The property was sold under hammer, yielding equitable shares. Though disappointed, the buyer acknowledged the fair process; all appreciated the resolution, distributing proceeds smoothly.
Take home message
Selling from a deceased estate is never simple, blending grief with high-stakes decisions.
By clarifying roles, defining objectives, timing wisely, tailoring presentation, choosing agents astutely, and seeking expert support, executors can honour legacies effectively – avoiding disputes and securing fair value and wealth for the deceased’s future generations.
Listen to Jarrod’s podcast: