Probate can be very daunting if you don’t know all the ins and outs. If you haven’t sold a house that is in probate before then the chances are that the idea really makes you nervous. Can a house be sold while in probate? Is it difficult to do this? Will I get a good price? These are some of the questions likely to be floating around.
There’s plenty of help out there, though, allowing you to sell your house fast and not experience any more turmoil at what is probably already a very difficult time.
This post is designed to help to talk you through how to sell probate property, multiple homeowners FAQs about the subject and the probate property sale procedure.
What Is Probate?
Probate is the process that takes place after someone has died. It is the legal proceeding to work out whether the deceased’s will is acceptable and valid, which is normally really simple to do, and then identifying what belonged to the person and who it now belongs to.
The terms of the will dictate property that is owned being passed on to relatives or other people outlined in the will. Probate is the process of giving someone permission to deal with the estate left by a dead person.
A probate house sale is usually a way to divide the financial value of a house. A house cannot be divided without raising the money from it and then dividing this among those specified in a will.
There are other aspects to probate besides property, such as belongings or money that was owned by the recently deceased. However, we’re looking at how to sell estate property during probate in this article.
Why Sell Real Estate During Probate?
There are numerous reasons to sell real estate during probate. It may be enforced. For instance, the executor in charge of the will may need to use the monetary value of the home to settle the debts of the deceased.
Commonly, the sale of real estate is to divide the financial value equally and evenly as specified in a will. For instance, if you have four people who all get an equal share of someone’s estate, there is no way to divide the home four ways. The only fair method is to raise the cash value of the home and belongings of the deceased and then split this.
Probate is the simplest route to this, and a way to divide the assets.
Selling Estate Property During Probate
This is the process that scares most people. The truth is, it isn’t the simplest thing in the world to do. It is important that you work with the best people. The short answer when it comes to selling the estate is to work with a local probate real estate specialist in order to make sure everything runs smoothly.
There’s even a specific qualification in this area that people can get to prove they know what they are doing, the Certified Probate Real Estate Specialist qualification.
The first step is to get the property appraised. You need to get a valuation to see what you are working with. The property in probate has to sell for at least 9/10ths of the value of the appraisal.
The property is then listed by the realtor on the normal channels. It is advertised for sale and can be sold just like any other property, however, it is listed that it is a probate property. People are looking for fast sales from their probate properties. The responsibility to keep the sale within 10% of the independently offered appraisal is designed to help the property owners and to ensure they get a fair price. There need to be three separate appraisals and an average value can then be taken.
Usually, there is no objection to the terms agreed when an offer comes in. The buyer can pay their price for the home and everything proceeds as normal. However, when an offer has actually been accepted, there are more legal formalities with probate homes. A Notice of Proposed Action needs to be sent to the new owners of the property, and they then have 15 days to object.
If there are objections to the price raised or other issues, there can be a court hearing. Working with the best real estate professionals can help you to avoid having to go through this process.
The sale of real estate can often be tricky, and probate doesn’t make it any easier, but if you work with trusted and trained professionals then it doesn’t have to be a painful process for you, and the money raised can be dealt with in a fair way that suits all parties.
