In real estate, an estate sale refers specifically to the sale of a property (the home itself) that is part of someone's estate, usually after the owner has passed away.
What is an estate sale?
What it means:
The real estate (house, condo, land, etc.) is being sold as part of settling the deceased person’s estate.
It’s typically managed by the executor or estate trustee, who is legally responsible for handling the person’s assets.
The proceeds from the sale go to the estate and are distributed to heirs, used to pay debts, taxes, or other estate expenses.
Key features:
Often sold “as-is”, meaning the home may not be renovated or staged.
It can be an opportunity for buyers looking for deals, especially if the heirs are motivated to sell quickly.
May require additional legal steps or probate, depending on local laws and whether there’s a will.
In summary:
An estate sale is a property being sold as part of managing someone's estate after death.
Can you get a good deal buying an estate sale? Yes, you can often get a good deal when buying a property through an estate sale, but it comes with some caveats.
Why You Might Get a Good Deal:
Motivated Sellers:
Executors or heirs may want to liquidate the property quickly to divide the estate or settle debts. That can lead to pricing below market value.As-Is Condition:
Many estate sale properties are sold “as-is,” meaning no repairs or upgrades are made. This can turn off casual buyers, giving savvy buyers a better shot at a discount.Less Competition:
If the home needs work or hasn’t been updated in years, it may not appeal to the average buyer, but for investors or those willing to renovate, it can be an opportunity.
Risks and Considerations:
As-Is = Unknowns:
You’ll need to do thorough due diligence, inspections, checking for liens, etc. There’s often deferred maintenance.Probate Delays:
If the property is still in probate, the process can take months, and timelines may be uncertain.Emotional Sellers:
In some cases, family members may be emotionally attached or difficult to negotiate with, especially if multiple heirs are involved.Cash Offers Preferred:
Some estate sales attract cash buyers due to the “as-is” nature, which can be a disadvantage if you need financing.
FAQs
Are there a lot of estate sales on the market?
Yes, estate sales are fairly common, and they're becoming more so in certain areas due to:
1. Aging Population (Baby Boomers)
As many older homeowners pass away or downsize, more properties are entering the market through estates.
In Canada and the U.S., this generational shift is leading to what's sometimes called the “Silver Tsunami”, a wave of real estate turnover from aging owners.
2. High Homeownership Rates Among Seniors
Older adults often own their homes outright. When they pass away, those homes are passed on to heirs, who may prefer to sell quickly rather than manage or move into the property.
3. Urban & Suburban Areas
Established neighborhoods, especially those developed in the ‘50s-’80s, tend to have more estate sales simply because the homeowners are now in their 70s–90s.
Where They’re Most Common:
Older suburbs or established city neighborhoods.
Areas with high concentrations of seniors.
Places where homes are passed down but not retained by the next generation.
How to Find Them:
MLS listings may note “estate sale” or “as-is.”
Real estate agents who specialize in probate or seniors’ real estate.
Public probate court records (if you're looking to invest).
Some estate sale companies also list real estate directly on their sites.
