Tips for selling family home after a death

Selling a home after a loved one has died can be very stressful. Emotions often run high, especially if surviving family members aren’t always in agreement as to the next step.

Renovation Realty, founded in 2011, is part general contractor and part real estate broker. That combination is often just what people who are trying to liquidate homes of loves ones need – a one-stop shop to deal with a home they don’t know what do with.

The idea behind Renovation Realty is to fix up and update the home to get it sold at the highest possible price.

“There’s no out-of-pocket cost to the homeowner,” said Keith Christian, the company’s chairman.

Renovation Realty pays for the cost of the renovations and is then reimbursed through escrow once the house is sold. The renovation cost is a fixed price, just like any contractor.

The advantage is that home buyers will pay market price for a turnkey home.

When Theresa Reichert’s father, Gilbert Huey died unexpectedly in June 2011, Reichert, as executor of the estate, was left to deal with the Bay Park home where she and her four siblings grew up.

“I had no idea what to do with it,” Reichert said. “I knew it needed a lot of work. I didn’t know where to start.”

Her father’s estate attorney eventually suggested Renovation Realty. The team came out to look at her property, which Reichert’s parents bought in the mid-1960s, and estimated the “as is” value at $450,000. That seemed low for a five-bedroom home with pool, so Reichert got a second option. That quote was even lower.

Christian suggested a scope of work that included a new kitchen and bathrooms as well as new flooring, windows, landscaping, paint and lighting. That makeover, which started in January 2013, transformed the home, Reichert said.

“It was amazing to watch. It went from a dark, sad house to open and bright,” she said.

By April 2013, the renovated property sold for $713,000. Reichert and her siblings ended up making $409,000 instead of the approximately $257,500 if they would have sold the house in its original condition. The renovation cost of $91,000 was taken out of the sales price during escrow.

“You have a lot of homes out there that haven’t been touched in 30, 40, 50 years,” Christian said. Those homes are not designed for today’s style of living and are harder to sell “as is.”

“Homes sell quicker and don’t fall out of escrow as often if they have been renovated,” he said.

The first thing Renovation Realty’s team addresses are safety issues such as the foundation, the roof, plumbing and electric problems so the home can pass code inspections.

Cosmetic upgrades are mostly centered on the kitchen, bathrooms, flooring and landscaping. “That’s where you get the most bang for you buck,” Christian said.

The renovations, which usually take from two weeks to one and a half months, average about $60,000 to $70,000 and are designed to appeal to as many buyers as possible.

The process starts with a plan for the project from start to finish. Because inherited homes are such a large part of Renovation Realty’s business, they have the expertise to help coordinate with estate sales and movers as well as make recommendations for attorneys, accountants and fiduciaries.

The company’s real estate agents and construction managers then draw up options for the renovations. Construction will start once the client signs a listing agreement.

“We give recommendations for the scope of the work,” Christian said, “but the homeowners have the final say.” The key, he said, is not to over-renovate. “Homeowners tend to fall in love with renovations.”

This is where it sometimes gets tricky, he said, because people are emotionally attached to the house. “We try to guide them, give them the best advice as possible. It’s their house, but at the same time we are the experts.”

That wasn’t an issue for Reichert. She and her siblings all agreed with the company’s plan.

“One of the great things about it was that I didn’t have to make any decisions,” she said.

Each renovation is different because the style of the house dictates the design. But the goal is to stay as neutral as possible. Hardwood floors, quartz countertops and new dual-paned windows are usually a safe bet.

Christian and his son, Cannon Christian, the company’s president, conceived the idea for the Renovation Realty after a deal fell through for a home they wanted to buy and flip. Since its inception, the company has refurbished and sold 260 homes; 120 projects were completed this year. The company has now opened an office in San Francisco.

“This model works well anywhere,” Christian said. “Every house is a different story.”