What exactly is an estate regarding real estate? Maybe you have heard of this but estates, like divorce situations, are common in real estate. Estate sales are common as well. This is when an estate sales company will have a sale of all the estate's personal property. But let's talk about estates in real estate as they are entirely different from an estate sale. In real estate, an estate refers to the total assets and liabilities of an individual including real property that is owned by an individual. This can include land and buildings, personal belongings, bank accounts and investments. The estate is managed by an executor whose primary role is to settle the estate of a deceased person. If there is a will, the executor must follow the orders of the deceased person's will. If there is no will, the probate court will appoint an administrator to handle the estate. 

It seemed like I was working with more and more estates recently. So, I decided to look back at my recent sales and see. In the last 18 months, 37% of my transactions involved an estate sale. With so much of our older population aging and moving on, their real estate is often sold by their executors after their passing. 

People perceive an estate sale to be a good purchase opportunity. This can be true. Often, the executor is a family member who can have an emotional tie to the property. Other times, the executor is an attorney or non-family member who has no emotional tie to the real estate and just wishes to liquidate the assets of the estate. I have seen buyers purchase real estate at good value in estate situations, but this is made more difficult in a strong seller's market. 

When the executor is a family member, I feel for them. It is often a difficult and emotional situation. Many executors are still grieving but must try their best to get everything together to take care of the estate. I have seen siblings and other family members, not agree on hardly anything during an estate sale, making the role of the executor even more challenging. The most successful estate situations I see are family members that can be mature and get along as well as attorneys handling the estate. The real estate transaction typically runs smoother in these situations.