Why would a house be advertised as "deceased estate"?

[jerrybee]

Unless it's a murder or one of those scenarios where they have to disclose this, I'm curious why it's sometimes stated clearly in house ads? All it can serve to do is scare off the superstitious (assuming the death was in the house). Sure superstitious buyers probably comprise only a relatively small part of the market depending on where you're selling but why take the risk.

I assume it's because deceased estate = no reserve? And no reserve is a huge selling point? If that's the case why not advertise "no reserve" to begin with?

Is there something else I'm missing? I'm just curious about what anyone has to gain by telling prospective buyers this. As a seller id be trying to do anything to maximize my chances.

 

[Aaron_C]

Whenever people see deceased estate they know that the property will be sold and it's not going to be a game of an unrealistic vendor.

Being a 'deceased estate' has nothing to do with superstitious.....it just means the owner died. It doesn't mean they died IN the property...big difference.

 

[jerrybee]

Whenever people see deceased estate they know that the property will be sold and it's not going to be a game of an unrealistic vendor.

But the children who inherited it might still have unrealistic expectations?

But that's my point right, there's no reserve, basically? My point is why not just clearly label it "no reserve" instead of "deceased estate"? It also seems clearer to regular buyers.

 

[Aaron_C]

There's always a reserve - but with deceased estates it's usually a realistic one.

 

[Bats]

The term "Deceased Estate" seems to attract buyers looking for a bargain.

The agent may then have the opportunity to play buyers off against each other and in theory obtain a higher price.

 

[jerrybee]

There's always a reserve - but with deceased estates it's usually a realistic one.

Ah I see. Thanks that explains it.

 

[perthguy]

I assume it's because deceased estate = no reserve? And no reserve is a huge selling point? If that's the case why not advertise "no reserve" to begin with?

Is there something else I'm missing? I'm just curious about what anyone has to gain by telling prospective buyers this. As a seller id be trying to do anything to maximize my chances.

I bought a decesed estate in Melbourne. It was advertised as such because the house wasn't in great condition (painted bright and clashing colours in each room). I think it was just to soften up buyers that they are buying an unrenovated house in "as is" condition.

A deceased estate recently sold in Perth, same story. It unrenovated and in dire need to serious work.

When I see 'decesed estate' in an ad I assume quite poor condition, which in RE terms translates to 'opportunity to increase the value' but in real life translates to 'a lot of work' (from personal experience!)

Come to think of it, both my IPs were deceased estates. One was advertised as such and one wasn't. Relative to the market, I actually paid less for the one that wasn't but it was in worse condition.

 

[beachgurl]

There's an agent that likes to advertise properties as deceased estates to give the impression that a property is going cheap.

 

[tess85]

There's an agent that likes to advertise properties as deceased estates to give the impression that a property is going cheap.

Even when the property isn't actually a deceased estate??

 

[jerrybee]

Even when the property isn't actually a deceased estate??

lol you could only do it for so long before people start to notice!

 

[Terry_w]

It all comes down to attracting potential purchasers. With a deceased estate there is a perception that the property must sell, and it will probably sell cheap - neither of which may be true, but could be the case.

 

[impala67]

So most "deceased estates" are marketing campaigns, and no advertising rules govern the validity or content of any real estate advertisement? Surely some laws apply must apply to the ads?

 

[Terry_w]

So most "deceased estates" are marketing campaigns, and no advertising rules govern the validity or content of any real estate advertisement? Surely some laws apply must apply to the ads?

Yes there are laws - Trade practices, now known as the Australian Consumer Law impose penalties for false and misleading advertising and there would be other acts that could apply.

 

[impala67]

...impose penalties for false and misleading advertising and there would be other acts that could apply.

So no one complains formally about the agents that use it as a gimmick?

 

[Terry_w]

So no one complains formally about the agents that use it as a gimmick?

I would imagine there are some complaints if there are really agents falsely advertising this.

 

[beachgurl]

The properties were owned by someone who died but the beneficiaries had been living in these houses for a reasonable period of time.

 

[TMNT]

Unless it's a murder or one of those scenarios where they have to disclose this, I'm curious why it's sometimes stated clearly in house ads? All it can serve to do is scare off the superstitious (assuming the death was in the house). Sure superstitious buyers probably comprise only a relatively small part of the market depending on where you're selling but why take the risk.

I assume it's because deceased estate = no reserve? And no reserve is a huge selling point? If that's the case why not advertise "no reserve" to begin with?

Is there something else I'm missing? I'm just curious about what anyone has to gain by telling prospective buyers this. As a seller id be trying to do anything to maximize my chances.

because it is a deceased estate?

 

[Peterw]

I do recall some time ago reading :-

Deceased Estate ....

Then in the body, if this does not sell this week end the wife is going to kill me ..

or similar words.

A bit tongue in cheek.

 

[Ed Barton]

It all comes down to attracting potential purchasers. With a deceased estate there is a perception that the property must sell, and it will probably sell cheap - neither of which may be true, but could be the case.

Same perception with mortgagee in possession or couple split. Certainly my experience of MIP sales is that they generally go for market or above.

If I ever sell I'm going to market it as a "mortgagee in possession of deceased estate who are divorcing". lol.

 

[jerrybee]

because it is a deceased estate?

If a house is crap I wouldn't write "features - crap house!!"

Unless it was a selling point / tactic, which I've just learned is the case with a deceased estate.