I was 28-years-old when I sold my parents’ house, technically-speaking. My parents were still young – barely over 60-years-old at that time, and I was in my fifth year of real estate, so I took on the listing and the responsibility that came with it.
Little did I know that this experience would be nothing like what I would see fifteen or sixteen years later when an aging Canadian population would result in a huge increase in Baby Boomers or The Silent Generation selling their homes.
Learn more about selling your home or selling your parents’ home with our Seller’s Guide right here.
It’s More Common than You Think
This year alone, my team and I have sold four houses that were either estate sales or properties where the aging owners were moved out to supportive housing by their children.
The experiences were all different, and each one kept us on our toes and came with a different set of challenges.
Challenges of Selling Your Parents’ Home
One property had been in the family for over seventy years but probably hadn’t been updated since the 1980’s. The house was full! And as is often the case, the four siblings who were the beneficiaries of the estate were not getting along. It was my team’s job to help them empty the house in order to list it for sale, and that meant deciding which items would be donated, which items would be sold at auction, and which would be thrown in a massive dumpster – one that we would need to rent and park in the driveway!
Another property, which was also full of belongings, was to be listed with the elderly sellers still residing in the property during the listing. That meant we would have to work around two people who had lived in the home for forty years, while other people want to view the property and experience some semblance of privacy.
Then there was a case of an elderly seller who’s daughter was selling the home via Power of Attorney (POA), and the daughter asked us, “Should I renovate the property before we sell?” The proceeds of the sale would be set aside for her mother’s future care, so she felt that spending money now would be an investment into her mother’s future. Suffice it to say, we renovated that property and it made a huge difference in the sale price we obtained in the end.
Every one of these situations was different but they all had one thing in common: we dealt with the children of the property owners.
Do you have questions about selling your home? Here are some posts you can read next:
- Should I Sell My Home Now or Leave it in My Will?
- Can You Fire Your Realtor if it’s Not Working Out?
- Should I Renovate My Home Before Selling It?
What Makes Selling Your Parents’ Home Difficult?
Selling your parents’ home isn’t easy. Logistics are difficult, the properties usually aren’t in good shape, but it’s the emotion that many people aren’t ready for.
In some of these situations, one or both of the parents have passed away.
In many of these situations, the “children” are selling the parents’ home, but the house served as the family home for those children many years ago. That can be extremely difficult, not only in terms of letting go, but also preparing the home for sale.
In one of our sales this year, a brother and sister spent two months going through all the items in the house. Their parents, both of whom had passed away, had kept everything from the kids’ childhood. They spent months going through boxes and bins, finding everything from old grade school report cards, to Cub Scout badges, to family photo albums, and they even sorted through Christmas decorations from the 1970’s.
They didn’t have the heart to throw boxes, with unknown contents, into garbage bins, so they undertook to go through it all.
This significantly lengthened the process, but also made it far more emotional for the two of them. Deciding what to keep was almost as difficult as throwing anything away.
Working with a full-service real estate agent is essential when dealing with a complicated sale. But what does “full service” really mean? Read more here.
Every Situation is Unique, but Emotions Can Get in the Way
I believe that most people underestimate how difficult the process of selling their parents’ home truly is, and few are prepared for the onset of emotion that comes with it.
Emotion aside, we find that many of these houses are often in poor condition, and decisions have to be made about how to list and sell the home.
We represented one estate where we had to list the property in “As-is, where-is condition, with no representations or warranties.” In a typical resale real estate market, doing so raises a red flag and risks pushing buyers away. But based on the state of this house and the risk/reward proposition that the estate faced, it wasn’t worth providing a pre-home inspection and allowing buyers to object to the condition of the home before closing. They needed a case of, “What you see is what you get,” and that’s how the home was sold.
Selling Your Parents’ Home When You Can’t Be There
We also find that many of the children of these property owners are scattered across the province, country, or globe. So when a family comes to us and says, “We need to sell our parents’ home,” and one sibling lives in Winnipeg, one lives in Florida, and one lives in Europe, it’s hard for them to fully grasp and understand the Toronto market. There’s a learning curve here and it’s our job to educate them and advise on the best way forward based on our market conditions, rather than what they would otherwise experience in their respective markets.
Get answers to your selling questions with these posts next:
- Reasons Why Your Home Isn’t Selling
- How Much Work is it to Sell a Home in Toronto?
- How to Price Your Home to Sell
Selling Your Parents’ Home As an Executor
Then there’s the issue of probate and whether or not the beneficiary of an estate should sell their parents’ house before a grant of probate has been obtained from a court. A legal will specifies who the beneficiaries are, but probate must be granted in order for the property title to be transferred. I personally believe that a grant of probate should be obtained first, otherwise the buyer pool for the home shrinks, and the potential sale price is lowered.
A person will only be given the responsibility of selling their parents’ home once, and thus it’s impossible to have any experience at it. It would be unreasonable to expect a person to know what to do, how to do it, and whom they can call for help.
With Canada’s population continuing to age, my team and I find ourselves increasingly taking on these challenges and with each successive sale, we refine our approach.
If you have questions or concerns about selling your parents’ home, or would like to know more about the process or hear about some of our experiences, please feel free to reach out by calling 416.642.2660 or emailing admin@torontorealtygroup.com.
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