A probate valuation also known as deceased estate valuation is one of the documents an experienced executor will obtain as part of their standard practice. The duties and responsibilities of an executor or often more extensive than the executor realises. One of the obvious problems is the situation where a deceased estate and ends up selling below market value.
In 2015 there was a deceased estate property under contract at $1.2 million in Parramatta. The listing agent was also the purchaser? Our firm valued the property for one of the beneficiaries well in excess of the contracted price, we then provided consultancy and directed the beneficiary to a lawyer friend. The lawyer stopped the sale, got the property back on the market with a new agent and it sold for $3.3 million at auction. This was a development site and was an extreme case. Deceased estates can definitely be targeted by opportunist and this was not the first time our valuation expertise has ended a below market sale under contract and stopped an under market sale. A current market valuation will assist the executors they are heading in the right direction in terms of achieving the fair value of the property at sale.
It will also provide a fair value for respective beneficiaries to buy each other out and assist in disputes.