Deceased Estate?
- Thread starter Big Tone
- Start date
I think it can be, under the right circumstances. Not always, though.
I bought one deceased estate at a good price last year as the beneficiaries didn't want to do anything to the place to update it or present it well for sale. Old paint. Old carpet and window treatments etc.
It was never marketed at it's full potential.
I'm in the process of buying another deceased estate direct from the executor. The beneficiaries want a quick and easy sale without any input in tidying the place up or a protracted marketing campaign. So, I get the benefit of a below market price purchase and we split the saving on agents commission between us.
Win-Win.
Well, maybe not for the Agent. They've had enough wins. Time someone else had a turn.
I bought one deceased estate at a good price last year as the beneficiaries didn't want to do anything to the place to update it or present it well for sale. Old paint. Old carpet and window treatments etc.
It was never marketed at it's full potential.
I'm in the process of buying another deceased estate direct from the executor. The beneficiaries want a quick and easy sale without any input in tidying the place up or a protracted marketing campaign. So, I get the benefit of a below market price purchase and we split the saving on agents commission between us.
Win-Win.
Well, maybe not for the Agent. They've had enough wins. Time someone else had a turn.
Deceased estates, mortgage sales are marketed that way to attract people thinking they may stumble upon a bargain. Whether they turn out to be, is pretty much down to all the normal variables. There is nothing inherently good or bad about these sales.
In saying that, you may find older properties, that may be well looked after, structurally OK, just cosmetically dated. Opportunity to add value or if the blocks are big enough, subdivide (?)
Speaking from personal experience, just roll your sleeves up because there is plenty of work generally to be done.
The only site I know of is this one.
Where you can win with deceased estates, is if there a few beneficaries that have different ideas about what they should get out of it. So, some might want to quit fast for what they can get, some might have grandiose ideas about whats its worth, it goes to auction, they dont believe the price they are offered and think they will get more if they wait. Place looks crappy -no-one prepared to put any work or money into the old place, then it goes stale, then they all decide they just want out and will sell to the next person offering a fast settlement. Seen it a lot, one the son reckoned he was going to do a complete make-over and make a motza, pulled the kitchen, bathroom, walls, everything out, and I am even talking about floorboards (perhaps they were rotten, who knows) then ran out of puff/interest, place sat on the market for 6mths, other beneficiaries having a kitten, they put it on the market in that state, and guess what, very few people ready to take on that type of commitment. Place goes for a song. Seen 2 like that now I think of it. Am looking at one at the moment (see my post weird floorplan) "a multitude of beneficiaries" that should make for a harmonious final decision
That appears to only be for VIC... I wonder if there is a similar site for QLD.
We love 'em !
Deceased (run-down) estates that need renovation have been the corner-stone of our IPs. For all the reasons in the previous posts plus a couple more. Often, the occupants have lived there a long time. We like this as it indicates it's "not a bad place to live". That makes for good rentability and happy tenants. But the real bonus is the old buggers got in first and got the best blocks of land...and that's what you're really buying. Love 'em .
LL
Deceased (run-down) estates that need renovation have been the corner-stone of our IPs. For all the reasons in the previous posts plus a couple more. Often, the occupants have lived there a long time. We like this as it indicates it's "not a bad place to live". That makes for good rentability and happy tenants. But the real bonus is the old buggers got in first and got the best blocks of land...and that's what you're really buying. Love 'em .
LL
We bought our PPOR through the Public Trustee. Strangest auction I have ever been to. Only two sold at auction (out of about 16). Nobody bid on most of them, probably waiting to negotiate.
Problem with ours was that there was a lot of interest and we had only until the last house being auctioned that day to decide whether to pay the reserve or put on a contract for less than the reserve. That would have meant waiting for the next board meeting of the Salvation Army to meet and decide whether to accept our offer. There were other bidders waiting to see what we did, so if we wanted the house, we had no choice but to meet the reserve, which we did.
It would have sold to someone else in five minutes if we had tried to get it cheaper.
So, it really depends on who the beneficiaries are. If our beneficiary had been in the room, we could have negotiated then and there and possibly got it cheaper.
Problem with ours was that there was a lot of interest and we had only until the last house being auctioned that day to decide whether to pay the reserve or put on a contract for less than the reserve. That would have meant waiting for the next board meeting of the Salvation Army to meet and decide whether to accept our offer. There were other bidders waiting to see what we did, so if we wanted the house, we had no choice but to meet the reserve, which we did.
It would have sold to someone else in five minutes if we had tried to get it cheaper.
So, it really depends on who the beneficiaries are. If our beneficiary had been in the room, we could have negotiated then and there and possibly got it cheaper.
