ARE YOU PREPARING TO SELL YOUR PARENT’S HOME?[1]? © 2013 by SELL YOUR PARENT’S HOME?[1]? © 2013 by

Selling Your Parent’s Home and What needs to be in play[2]
	At home /Invalid	Assisted Living Facility	Parents Deceased
Attorney	X	X	X
Realtor®	X	X	X
The Will	-----	-------	X
Homeowner’s Insurance	X	X	X
Flood Insurance	X	X	X
Liens/Judgments	X	X	X
Repairs	X	X	X
Siblings	X	X	X
SS#’s	X	X	X

The above table indicates the areas of importance as it relates to the marketing of your parent’s home.   Just know that this is an anticipated direction as it relates to your parent’s home should you and your family members find yourself in this position.  It may not be you specifically that will obtain this valuable information, but know that if it isn’t you, that a sibling or trusted family member is taking the time to minimize the challenges of selling the family home.  Why this information at this time?                    

Oh no, not Hurricane Katrina again?

It has been almost 8 years since Hurricane Katrina and there are still life lessons that have yet to come to the top that many homeowners will need to benefit from, or teach.  As a Real Estate professional, my colleagues and I have seen a very unfortunate set of events after Hurricane Katrina when it came to family members trying to sell the homes of their parents, grandparents and the like.  The problem that many family members faced had to do with not being able to sell the homes or get funding to repair the homes because their family members had passed and there had been no will, or no succession. 

As agents, when we tried to assist family members in the sale of those homes, critical information was not available not only in the ability to list for us, but for title companies as well in terms of conducting successions on family members who had perhaps passed as recently as the storm in 2005, or as far back as we knew, 1965 (Hurricane Betsy is my point of reference).  The number of family members who had lived in a given house, even though it had been destroyed was untraceable, or undetectable because in several cases, we were dealing with 3^rd or 4^th generations of family members who had lived in the family home and who had moved on without so much as an indication of who were the survivors that could help in tracing back the ownership.

This posting may help in the uneventful replication of such an event, but more so, even under ordinary circumstances in which, God forbid, that we loose our parents.  The truth of the matter is, is that we take the necessary precautions to obtain and store the necessary documentation to allow for other family members to properly handled the family estate.  If not, what happens?

See An Attorney

Before my attorney colleagues file a brief, a lawsuit or whatever it is they do when they are bored and believes someone is treading in their area of expertise, let me emphasize the need to consult with a legal representative.  What doesn’t happen in the State of Louisiana when there is no Will, is that no one is going to sell the family estate.  When an issue involving the home occurs, you most likely will want to speak to a (real estate) or title attorney.  He/She is able to give you a great overview of what is vital to securing your family’s home in terms of a succession, or ensuring that there is a will for your parents if they are still of sound mind.  As a matter of fact, you may want to consider doing one for yourself while you have the attorney’s attention.

Summary

If your parent(s) are unable to assist

1.             Important papers- Will(s); homeowner’s insurance; flood insurance; life insurance; mortgage papers, and/or other important papers for filing;

2.             Contact a title attorney to obtain legal counseling if your parents have passed and you are in need of having a succession filed;

3.             If there is no will, the title attorney will advise of your options (LA only);

4.             Determine if the family home has any outstanding liens (succession may reveal this, but check with real estate attorney or title attorney to be sure;

5.             Any repairs that may appear to be needed on the home should be evaluated against the value of the home.  Here we suggest getting an Appraisal or having a Realtor ® conducting a Comparative Market Analysis to determine the potential value of the home. (For example, if a house is only valued at $40,000 and the potential repairs total $29,000, then it is up to the family/you to decide if a repair will be worth the investment;

6.             Unless you are an only child, siblings aren’t always willing to cooperate with one another and may cause a tremendous delay in settling the estate of the family.  This may happen if one sibling who had perceived that attention was never directed their way and, out of spite, tries not to participate in helping to file a succession.  It may help if the attorney speaks directly to that sibling in order to keep the process moving along;

7.             Social Security numbers are often asked for by the attorney in order to help locate an unaccounted for sibling or to see if there are any other offspring who may need to be aware of the status of the family home.

Conclusion

It will never be easy to process the loss of family members.  My condolences to anyone whose parents are incapacitated or has lost their parent(s) and are now, having to face selling the family home.  It is a very difficult task.  From selling and donating their parents’ belongings, finding old family pictures, going through old papers, are just doing that final sweep of the home, it is never easy.  This is why, as an offspring, you embrace, or ensure that you have as many independent partners as possible in your decisions to sell the family home.  The less attached they are to your choices, the more objective their advice.  But, you still want someone who is compassionate and empathetic to your challenges and/or loss.  From an attorney, to an appraiser, to a real estate professional, and others, bringing together professionals who respect what you are going through and what you are trying to do is extremely important.  You don’t want to have to worry about someone trying to take advantage of your situation.  So, you may also want to seek the advice of other family members and friends in terms of referrals as to who could be a big help to you during these very emotional times.  Good luck and best wishes.

Disclaimer:  No information provided here should be considered as legal advice, please consult with your respective attorneys or related professionals for advice concerning your finances, etc.  All information provided here is deemed to be from reliable sources, but not guaranteed. This blog is not attempt to solicit the business of any brokerage or agent.

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[1] Short Sale- http://homebuying.about.com/od/4closureshortsales/a/shortsalebasics.htm

[2] This table nor any information included in this posting should be considered legal advice.  Information provided while deemed to be from reliable sources is not guaranteed.  Please consult your attorney for legal advice.

EVACUATING YOUR HOME WHILE IT’S ON THE MARKET © 2013 by Wayne D. Lewis, Sr.

10 Things you should consider if you have to evacuate your home during a disaster

 Civil Emergency Message: Hurricane Katrina (2005) :
http://www.youtube.com/watch?v=tkruQZpQ2g8
 

Along the hurricane-prone Gulf Coast, it is important to know the ins and outs regarding evacuation in preparation for a storm.  With an emphasis always on safety, homeowners are encouraged to always follow the instructions of their local authorities.  There will be many things to focus on such as food, water, children, pets, elderly, insurance papers, gassing up, etc., making sure that all of these are sufficient preparations for at least 3 days out.

Resources on Evacuation Planning and Assistive Products:
http://www.access-board.gov/evac.htm#Resources

Evacuating is no inexpensive set of activities for anyone, and doing so should not be taken lightly.  During the hurricane season, said to be between June 1 and November 31, very few things or situations come to an absolute halt, including selling our homes.  During this time period, buyers and sellers are extremely aware of the need for homeowners insurance and flood insurance, now more than ever with the Biggers-Waters Act[1] not too far in the back of their minds.  This latest act by Congress, yet to be fully implemented, will have a tremendous impact on whether buyers and sellers will be able to transfer existing policies between each other.  A very important concern indeed, but how it rates among the many decisions at hand, when it comes to evacuating, is up to each individual family.

The Katrina Video Congress Didn't Want You To See (2005)  :
http://www.youtube.com/watch?v=epwpnMztkM0

For Real Estate Professionals who have properties on the markets, it is very important that sellers protect their homes during any major weather event.  The stakes increase significantly if and when a homeowner has to evacuate.  And if that isn’t bad enough, the stakes go wild and crazy when a home is under contract to close when lo and behold, an impending storm is headed for the Gulf Coast.  So, with a storm headed for, let’s say for example, the Greater New Orleans area, the homeowner, and the perspective buyer’s investment must be protected as best as possible against the dangers of possible tropical storm or Category 1[2] or an even greater storm.  What can or should a seller do to try to minimize damage to their property in order to keep it at or in better condition should a storm strike?  Below are 10 suggestions that could help homeowner protect their property in the event of a storm, and/or, if they have to evacuate their home while on the market.

Hurricane Katrina: Extreme Video (2005): 
http://www.youtube.com/watch?v=s76Qn7bpCsQ

 Pre-Evacuation Steps to take to protect your home while still on the market:

1.      Remove (FOR SALE SIGNS) or any other signs that indicate your home is on the market- in the event of high winds, signs can be missiles as could any loosely secured item, causing damage to your home, or injuring an unsuspecting neighbor;

 

2.      Contact your Realtor® to let them know that you will be evacuating your home- Your Realtor is very concerned about each of their homeowners’ properties.  On your list of things to do, include your real estate representative of persons and entities that you will not be at home for a foreseeable period.  You may want to advise your real estate professional, that if you are not back by a given time, how to get in touch with you, should the need arises;

Planning for safe and effective evacuations:

http://www.fema.gov/region-iii-mitigation-division/national-hurricane-program#2 

3.      Remove any lockboxes -Lockboxes are indications that your home is possibly for sale, especially if it appears empty.  You may want to ask your agent to re-locate their lockbox to the side of the house where it is less likely to be seen by those with criminal intentions;

 Civil Emergency Message: Hurricane Gustav (2008):
 http://www.youtube.com/watch?v=CqDFvD5R5VI

4.      Remove any flyer boxes-Same as #1;

 

5.      Make sure your agent cancels any showings or Open Houses-While it is unlikely that any showings will be occurring during a storm or an impending storm, you and your agent should be proactive to ensure that any Open House activity is cancelled, and that anyone wishing to see the house during your evacuation preparation, should be advised to reschedule for a follow up visit after the storm has cleared and the house has been assessed for damages;

 

6.      Share with your neighbors that you will be evacuating- Presumably, if you are evacuating, your neighbors are evacuating as well to safety.  If one of your neighbors decides to remain behind, exchange numbers, or emails in the event that something happens and they need to contact you or vise versa about your home while you are gone;

Know your Local Emergency Evacuation Plans & Disaster Communication Plans: 

http://www.readynation.com/Connect/EvacuatingDuringaDisaster.aspx

7.      Protect windows and doors-Board up windows, sliding glass and/or French doors to minimize flying debris from breaking glass;

 

8.      Secure any furniture or potted plants (porch or patios)-Put these items in a garage, tie to a carport, or place inside your home;

 

9.      Do not entertain any requests to show your home without your Realtor-  During the times in which many of us are focused on evacuation preparation, it is possible that we maybe at our most vulnerable.  Possibly interests in your home, in the event of a looming storm is possible, but for the sake of your family, ask the interested party to contact your Realtor to schedule a showing after the storm. If they are interested, they will be back.

 

 

10.  Lock all doors and activate all alarms-Obviously, it goes without saying to lock the doors on your home, especially since you will be gone for 3 days.  But, even the most simplest things we do forget.  When putting the alarm, you should consider putting on “away”, unless a pet is going to be left behind.

Lagniappe:

11.  Obey all federal and local warnings on evacuations- No information in this post shall be considered as overriding any information or instructions from your local authorities or your listing Realtor®.  For further information, consult with your personal Realtor.

 

Hopefully, this information helps you and your Realtor to take reasonable steps to protect your home in the event you may have to evacuate.  There is no guarantee that any of the above suggestions will work.  Your circumstances may vary, but just being mindful of the many things that you, as a homeowner should be aware of, could help you protect your home in such an event.  Hopefully, you never have to use this information.

Emergency Evacuation Planning – Are You Prepared?

 http://offgridsurvival.com/emergencyevacuationplanning/

Not an intent to solicit the clients or agent of any other broker.  Information provided here, while deemed to be from reliable sources is not guaranteed.  Wherever needed, you are encouraged to seek legal advice as this is not intended to be legal advice.

 

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[1] Biggers-Waters Act- http://www.floods.org/ace-files/documentlibrary/2012_NFIP_Reform/2012_NFIP_Reform_Act_ASFPM_Summary_of_Contents.pdf

[2] Hurricane Categories- http://gohsep.la.gov/hurricanerelated/HURRICANECATEGORIES.htm

Purchasing Hurricane Impacted Properties (c) 2012 by Wayne D. Lewis, Sr.

The pictures included here demonstrate how powerful the forces of nature were when it damaged these homes in the New Orleans area after Hurricane Katrina.  Many properties that were impacted in the New Orleans area after Hurricane Katrina were damaged in varying degrees, and in many cases by flood waters, and not the Category forced winds that affected the Mississippi Gulf Coast.   The aftermath of destroyed homes left much to be desired for many homeowners.  Many homeowners chose to sell what was left of their homes, either through the government-based Road Home program or directly to the highest bidder.

Many of the sellers of the homes in New Orleans faced many challenges that they had never faced before.  As a result, not only the damages to their homes, the sellers and buyers had to quickly become knowledgeable in the selling and purchasing of flood-damaged homes.  Here are a few things that sellers and buyers had to become familiar with flood-damaged homes:

 

•  Homes that were flooded need to be gutted at least 4 or more feet above the flood line, provided that the water line was below electrical sockets;
• In some cases, where electricity was affected, whole houses had to be rewired.

• The purchase of such flooded homes, if they were going to be financed and/or insured, required a structural report from an engineering company;
• The homes had to be treated for mold after flood waters receded;
• Many gas lines flooded, often leaving water in the lines after the gas was turned back on;
• Homes that were flooded were required to be brought up to code for any renovations conducted;
• Permits were most likely required for any renovations;
• In many homes that were gutted, long term problems were revealed that would not have been ordinarily discovered:
• Termite damaged studs
• Mold
• Hidden structural craftsmanship
• Many homes that weren't already knocked off of their foundations, were torn down because they had suffered extensive damage.
• Homeowners becamse suspicious of many who called themselves contractors due to reports of scams by those pretending to be, or who were contractors and took advantage of homeowners

The above and other related issues played a great role in the marketing and selling of flood-damaged homes.  For sellers, many of whom were never able to move back into their homes, the salt in the wound were the prices that they had to settle for.  In many cases, these were homes that were already paid for, free and clear, and that had appraised much higher.  For many of those homes, where houses had to be appraised, banks did not take pre-storm value into account, let alone location.  Homes that may have sold for $300,000 was perhaps worth $150,000 or less, if not lot value.  Insurance became the real challenge in terms of finding insurance companies that were at least writing policies, when they weren't dropping policy-holders apparently due to the massive amount of damage caused by the flooding.

All of the issues associated with the sale of flood-damaged property, as Hurricane Katrina taught us had mostly to do with what more would the seller be willing to loose in the sale of the flood-damaged homes, and what risks were the buyers willing to take in order to purchase the same homes.  In Louisiana, the term  "AS IS, Waiver of Redhibition (http://www.proeducate.com/courses/static_files/docs/asisclause.PDF), was never more prominently used.  It basically meant that the buyer was responsible for the condition of the property once he/she signed off for it at closing.  That meant that regarding any problems discovered after the sale, the seller was not to be held liable.  Of course that did not apply if it could be found that seller intentionally withheld information, or covered up damage that knew about prior to sale.

For the buyer, while it may have been a flood-damaged property, the apparent, and foreseeable values were nothing short of achievable.  Many buyers, some of them first-time home buyers, saw opportunities to buy homes in areas that were apparently out of their reach before the storm, and saw a better opportunity as a result of the flood-damaged homes.  This, despite the fact that their own homes may have been damaged by the very same storm, or aftermath.

For the sellers, the challenges were from many sides.  Dealing with insurance companies, FEMA, Red Cross, looters, contractors, scam artists, the various governmental bodies, all of which took their toll on many homeowners.  Many decided: enough was enough, and decided to move on to higher ground, or totally out of the perceived flood-zone, or most likely future hurricane disaster zone.

Whatever set of circumstances flood properties presented, it was important for all real estate professionals to become quickly adept at having a working knowledge of the drawbacks and benefits of continuing to own, to sell or to buy a flood ravaged property.  In the long run, it became a benefit as well for those professionals who became a source of information for buyers and sellers alike, who during such times as was presented by Hurricane Katrina and her aftermath, were able to begin rebuilding their lives and trying to establish some form of normalcy for themselves and their families.
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