Inherited Property, Trust Sales and the Risk of Selling Off Market
In real estate, a lot of what we see comes down to three major life events: death, divorce and diapers. They are deeply personal, emotional, and often come with major financial decisions.
Lately, I have been thinking a lot about the first one: death.
When someone inherits a property through a trust, they are often dealing with far more than just a real estate transaction. There may be grief, attorneys, paperwork, personal belongings, family decisions, timelines and tax considerations, all while trying to determine what to do with one of the largest assets involved.
That is exactly why the advice surrounding an inherited property matters so much.
Dual Representation Is Not Always the Problem
I fully understand dual representation. I have represented both sides of transactions before, and I believe there are situations where it can work. However, I believe those situations are rare.
The issue, in my opinion, is not simply whether one agent represents both the buyer and the seller.
The issue is whether the seller truly understands the market before agreeing to the transaction.
Especially with a trust, I do not believe the same agent should represent both sides in an off-market sale without first proving the property’s marketability and value.
If the home has been properly exposed to the market, the pricing has been tested, demand has been established, and that same agent ultimately brings the buyer, I am completely supportive of that situation.
At that point, the market has spoken.
Where Sellers Can Lose Money
What concerns me is when an agent approaches an heir or trustee with a buyer already in hand and recommends selling the property without ever taking it to market.
The presentation may sound appealing:
“We already have a buyer.”
“You do not need to prepare the property.”
“You can avoid showings.”
“We may be able to save you some commission.”
For someone dealing with the emotional and logistical weight of an inheritance, that convenience can be very attractive.
But convenience and value are not always the same thing.
Saving money on commission means very little if the property sells for substantially less than the market would have supported.
That becomes even more concerning when the agent is not a true expert in the neighborhood and does not have a deep understanding of the local buyer pool, comparable sales, current demand and how the property should be positioned.
A Trust Property Deserves a Strategy
An inherited property deserves the same thoughtful strategy as any other significant asset.
That means understanding:
What is the property really worth?
What recent comparable sales support that value?
Would preparation or repairs materially change the sales price?
Who is the likely buyer?
What type of marketing would create the most demand?
What happens if the property is exposed to every qualified buyer and every agent working in that neighborhood?
Is an off-market sale actually beneficial, or simply easier?
Sometimes an off-market sale is absolutely the right answer.
There may be privacy concerns, timing issues, condition problems or other circumstances that make a private sale the best choice.
But the decision should be made with full information.
Information Creates Power
I have always told my clients the same thing:
I give you the information. The information gives you the power. You make the decision.
That is what good representation should look like.
A real estate professional should educate, advise, market, negotiate and give the client enough information to make the decision that is right for them.
Especially when dealing with an inherited property or trust sale, the goal should not simply be to make the transaction easy.
It should be to make sure the seller understands the value of what they own and the options available to them before they make one of the biggest financial decisions involved in settling an estate.
If you are handling an inherited property or trust sale and want a second opinion on pricing, preparation, marketing or strategy, I am always happy to have that conversation.
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