Handling an estate can be expensive. Try to avoid these three unnecessary pitfalls.
The storage trap:
The biggest mistake people make in estate liquidation or downsizing is moving their things to costly storage facilities thinking they will sort them later. This is a huge myth. Once items are in storage they are actually more difficult to sort over time, and the monthly fees will eat up any value you think you are saving—regardless of what you spent to move it there the first time. It’s better to process the estate in place rather than storing it off-site for later days.
To appraise or not:
Appraisals can be a costly and unnecessary distraction, and they can also create confusion and ill will in the family if their values are inaccurate or misconstrued. First find out if the estate is actually required by law to have an appraisal done. If so, ask for a fair-market-value appraisal. They are the closest to current market value, meaning what the object would likely sell for. Steer clear of appraisals done more than two years ago, and NEVER accept an insurance or replacement value appraisal as a guide. They rely on full retail prices and are useless when trying to resell your stuff.
Time is Money:
This old saying is absolutely true when it comes to handling an estate. Once you’ve decided to downsize or you’ve been charged with handling one, the clock starts ticking and the expenses start to pile up. Taxes, Insurance, Utilities and Maintenance don’t stop just because you’ve decided to move to Florida. You need to SELL THE HOUSE, so keep your eye on the prize and make a plan! Pull out a calendar and be realistic about your move. Choose a future date to list the house for sale and work backwards from it—filling in all the stages. This is where an expert is helpful to clear a path. Be very firm with your children and/or estate beneficiaries to claim and REMOVE their stuff in a timely manner. Again, PUT IT IN WRITING and notify them officially. People only care about their own schedules, so be firm and urgent!
Pro Tip:
If you are given the task of handling an estate, remember the end goal is usually to sell the house and capture its value. That won’t happen until the house is empty, so don’t get bogged down in the minutia of every single thing in the house. Sit down with a calendar and plan backwards from your desired Real Estate Listing Date. Be realistic so you won’t make expensive mistakes. Haste makes waste!
The experts at Hunt and Peck Estate Services can help you get the most value from your estate or downsize.
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