Selling a property as part of a probate estate can be a difficult process, particularly when executors are responsible for settling the estate and distributing the proceeds to beneficiaries.
While a sale on the open market may initially appear to be the most straightforward option, it does not always go to plan. Buyers can withdraw, mortgage arrangements can fall through and unexpected delays can leave executors facing additional costs and uncertainty.
When a property has already attracted several failed offers, repeating the same sales approach may not be the best way forward. An online property auction can provide an alternative, offering a defined sales process and greater certainty once a buyer is secured.
What happens when a probate property sale keeps falling through?
For executors, every failed sale can mean starting the process again. Solicitors may need to revisit paperwork, marketing periods are extended and the estate remains unsettled for longer.
This can be particularly frustrating when a charity or other beneficiary is waiting to receive its inheritance.
Cherry Trees presented exactly this challenge. The property was being sold as part of a probate estate, with a charity among the beneficiaries. Three separate sales had already been agreed on the open market, but each had fallen through before completion.
Having previously handled the property’s marketing, Bradley Hall’s Gosforth branch recognised that another attempt using the same approach was unlikely to resolve the situation. Instead, the team recommended changing the sales strategy and taking the property to online auction.
Why consider auction for a probate property?
One of the key differences between selling through an online auction and a traditional private treaty sale is the point at which contracts are exchanged.
With a traditional sale, an agreed offer does not necessarily mean the transaction is secure. Until exchange, a buyer can withdraw, potentially leaving the seller back at the beginning of the process.
With an unconditional auction sale, the successful bidder is legally committed to the purchase when the auction ends and contracts are exchanged. This removes the uncertainty of a buyer pulling out during the period between offer acceptance and exchange.
For executors, this can provide a clearer route towards settling an estate. The terms of the sale, including the completion timeframe, are established in advance, helping all parties understand what happens next.
A different approach delivers a stronger result
Following the recommendation from Bradley Hall’s Gosforth team, Cherry Trees was marketed through the online auction platform.
The property attracted a successful buyer during its first auction cycle, following just 28 days of marketing. Importantly, the final sale price was higher than all three offers previously agreed through the open market, delivering a stronger return for the estate and its charity beneficiary.
Completion took place 56 days after exchange, with the timeframe agreed upfront as part of the auction process.
After three unsuccessful attempts to sell, the change in strategy provided the executors with a successful outcome and a clearer path towards settling the estate.
Making the process easier for buyers and executors
Auction can also offer a structured experience for buyers, particularly those purchasing a property through this route for the first time.
The buyer of Cherry Trees, Dave G., praised the support received from Bradley Hall’s auction team, saying: “It was my first time and Louise at Bradley Hall walked me through the whole process from start to finish.”
Clear communication is important throughout an auction transaction, helping buyers understand the process and ensuring they know what is required at each stage.
Selling a probate property? Consider all your options
For executors, probate solicitors and charity legacy teams, a property sale that repeatedly falls through can create unnecessary delays and additional pressure.
Auction may be worth considering where a property has struggled to sell through private treaty, particularly when certainty, a defined completion period and a successful disposal are priorities.
Bradley Hall’s residential and auction teams can advise on the most suitable route to market, helping executors understand their options and work towards achieving the best possible outcome for the estate.
To discuss a probate property or an estate sale that has stalled, contact Bradley Hall Auctions on 0191 563 4242 or book a meeting with our team.
