Difference between estate sale and court order sale

[kingkong]

Hello, everyone
I googled hours trying to determine the difference between an estate sale and court order sale without solid answers. In the UAD forms there is a drop down list of estate sale and court order sale. This is very confusing, because court order sales could be estate sales i guess. Than there is the confusion of trust sales and probate sales. So if anybody can help me that would be greatly appreciated.

 

[Smokey Bear]

Well, neither an estate sale nor a court ordered sale would use UAD OR a Fannie Mae form, so it's not particularly relevant. However, just to answer your question - an estate sale will likely be from a living trust, which doesn't require probate. A court ordered sale could be from probate, divorce or a partition suit.

 

[Restrain]

The court sale could also be to settle a lawsuit judgement, bankruptcy, or other similar legal matter. The difference is that an estate sale may or may not be distressed, while a court-ordered sale may well be distressed.

 

[Terrel L. Shields]

An "estate" sale is just that. The courts are rarely directly involved. It is merely disposal of assets by the trustee of the estate, or the heirs. A court ordered sale is usually going to be a limited to a set time or simply auctioned. It is normally not what I would call an "arm's length" sale...not exposed to the market properly.

OTOH, a simple estate sale is usually arm's length although it may sell somewhat on the cheap side on average. This reflection is my own in that the more unusual the property, the less patience most heirs have in seeing the property sold. They are more likely to consider a low ball offer. In some cases, they also auction the property off.

My aunt and uncle passed away and my cousins chose to auction. The estimate was $100,000. The auction yielded an offer of $91,000. They took it. As a vacant home selling during the first part of 2008, marketing times were becoming extended. Six more months would means thousands more in taxes and insurance, utilities, and an uncertain future. Neither one wanted to "mess with" the property. In the long run it was a good move indeed. Had it taken more than that 6 months to sell, the market would have plunged by the end of 2008. In fact, I doubt this house would appraise for more than $85,000 today.

Nevertheless, as appraisers we would see the sale price as being "below" market value as of the date of sale and as a consequence, I never used it as a comparable.

 

[Walter Kirk]

A court ordered sale can be considered a distress sale since there is normally a time constraint imposed by the court and/or unwillingness of the owner to sell.

An estate sale may be a distress sale but also may be allowed proper exposure to the market, seller concessions, etc. In most cases there is no outside authority influencing the sale.

 

[residentialguy]

A court ordered sale can be considered a distress sale since there is normally a time constraint imposed by the court and/or unwillingness of the owner to sell.

An estate sale may be a distress sale but also may be allowed proper exposure to the market, seller concessions, etc. In most cases there is no outside authority influencing the sale.

Agreed, however a grieving family is not very indicative of a typical buyer motivation. Typically, unless the family moves in or rents, they need to sell and every day is costing them money.

 

[TxArmadillo]

Agreed, however a grieving family is not very indicative of a typical buyer motivation. Typically, unless the family moves in or rents, they need to sell and every day is costing them money.

Agreed. A determination of who is acting as the seller of the property must be made. The designated executor, for example, may have no emotional or financial attachment to the deceased or the property and can therefore act with typical seller motivation.

 

[residentialguy]

Agreed. A determination of who is acting as the seller of the property must be made. The designated executor, for example, may have no emotional or financial attachment to the deceased or the property and can therefore act with typical seller motivation.

That still leaves the issue of whether or not there is high compulsion to sell. They typically sell for less.

 

[Michigan CG]

An estate sale is where the carpet is orange shag and the appliances are olive green. There is typically a 1950's piano still in the home that none of the heirs wanted.

A court ordered sale is typically a divorce where the judge got POed because the spouses were being ridiculous.

 

[residentialguy]

An estate sale is where the carpet is orange shag and the appliances are olive green. There is typically a 1950's piano still in the home that none of the heirs wanted.

so true!