A comprehensive guide to handling inherited apartment buildings through trust and probate processes.
Why Trust and Probate Apartment Sales Are Different
When an apartment building is held in a trust or estate, decisions aren't just financial—there are:
- Fiduciary duties to beneficiaries
- Emotional dynamics among family members
- Legal timelines and court requirements
For attorneys and trustees, the goal is to maximize value while minimizing conflict and delay.
Step 1: Establish a Clear Valuation
A professional multifamily valuation provides:
- Support for court or beneficiary communications
- A realistic expectation of pricing and timing
- Insight into whether the asset should be sold, refinanced, or held
This includes an analysis of RSO status, rent levels, deferred maintenance, and buyer pool for that submarket.
Step 2: Address Physical and Legal Issues Early
Before marketing, it's important to:
- Identify any code violations or open permits
- Address obvious health and safety issues
- Review leases, security deposits, and tenant histories
Cleaning up these items early can prevent surprises in escrow.
Step 3: Choose the Right Marketing Strategy
For trust and probate sales, the marketing plan should:
- Demonstrate that the property was properly exposed to the market
- Document how offers were received and evaluated
- Help the fiduciary defend decisions if later questioned by beneficiaries
Sometimes, courts or trust documents will prefer a transparent bidding process that shows best efforts to obtain fair market value.
Step 4: Communication with Beneficiaries and Stakeholders
Regular updates and clear explanations of:
- How the property was priced
- What feedback buyers are giving
- Why certain offers are stronger than others
can reduce tension and create alignment among heirs or beneficiaries.
Partnering with a Multifamily Specialist
A broker who focuses on LA multifamily and understands trust and probate processes can be an important partner for both attorneys and families, helping translate legal requirements into a practical sale strategy that maximizes value.
Contact me to discuss your trust or probate situation confidentially.
Quick FAQs
Q: Do trust and probate sales sell for less?
A: Not necessarily. With proper preparation and marketing, they can achieve full market value. The key is managing timelines and disclosures correctly.
Q: Should we fix up the building before selling?
A: It depends on the scope and budget. Sometimes modest cleanup and addressing obvious issues is enough; in other cases, selling "as-is" with appropriate pricing is more efficient.