The process of selling real estate through probate or trust involves a series of court-regulated steps that must be carefully monitored and managed.
Managing a probate real estate transaction takes organization – deadlines are unforgiving, documentation is specialized and the court’s oversight must be honored throughout the marketing, offers, negotiations and sale of the property. To successfully complete the process, you’ll need the expertise of an experienced local probate attorney and a top local real estate agent with probate experience. On average, the probate process will often take up to 24 months.
Estelia Mesimer: RE/MAX Metro: St. Petersburg, FL: Pinellas County
According to RE/MAX Metro realtor Estelia Mesimer, who has successfully sold many properties in probate, while it might make sense to find a real estate agent that you have worked with in the past or ask friends for recommendations, you must keep in mind that selling a traditional home and a home in probate are not the same. You need someone experienced in probate sales who can guide you through the complexities of the sales process.
The Probate Process
In many states, going through the process to probate a will is the only option to legally become the owner of a home. Keep in mind that every state has a different probate law, even though many have adopted the “Uniform Probate Code.”
When there is a home to be sold, it’s important that a home appraisal is conducted. Your real estate agent will pull comparables for the area, read the appraisal to determine what the asking price on the property should be and will be able to go over any changes or upgrades you’ll need to make to the property so that you can get a head start before it’s time to put the home on the market.
Probate courts require that the property sells for at least 90% of the home’s appraised value. After receiving the appraisal, the executor will petition the probate court to begin the sale. Once the court hearing is over, it will grant the executor permission to list the home’s sale formally.
3 Common Mistakes People Make Selling Probate Real Estate
Leaving the house vacant for an extended period. Disagreements among stakeholders can delay a probate sale, meaning the property sits vacant for an extended period of time. This can create a number of issues. For example, if a water pipe breaks and no one discovers it for weeks that may cost thousands of dollars to repair; if the lawn starts to look shabby and overgrown, that could result in a fine by the city for a code violation. In addition, insurance companies don’t like to insure empty houses. If a house sits empty for more than 60 days, it’s possible that the insurance policy could revoke important coverages.
Solution: Get the probate process started quickly and keep up with all necessary property maintenance. File the petition to set a court date as soon as possible. If infighting starts to stall progress, consult your lawyer and get the probate court involved as necessary to make a decision. Be sure to maintain the homeowners insurance policy on the decedent’s house until ownership is officially transferred to the new buyer of the home.
Selling property in probate without authority. Just because you’re listed as the executor in a will does not mean you can sell the deceased’s property. Typically, your realtor is appointed the receiver and he/she makes all the decisions to sell the estate for the most money in the fastest amount of time.
Solution: File your probate case with the court as soon as possible. You’ll need your attorney to help you gather up all of the required documentation, such as the death certificate, original will, and your state’s probate petition forms. Getting the petition in as quickly as possible is crucial because you could have to wait weeks or months to even get a court date, and meanwhile the costs associated with the house, including the mortgage, utilities, and lawn maintenance continue to stack up. If the paperwork has been filed correctly and everything goes according to plan, the court will sign an order deeming you the personal representative of the estate with a Letters of Administration (or Letters Testamentary, if the estate doesn’t have a will.) At that point you’ll be legally able to sign a listing agreement with an agent and begin selling the property.
Waiting Too Long. When it comes to probate, you need to start immediately. Failure to do so can cost you. The longer the home sits in probate, the more the expenses that will have to be paid from the estate.
Solution: Get started in the process early and always process tasks quickly. Don’t be the reason there is a delay in the probate process. As soon as possible, you should file the necessary paperwork to start the probate process, begin looking for a probate attorney if you need one, and start your research for finding a probate real estate agent.
Bottom Line: No matter what you decide to do, the home needs to be prepared for sale. Pack things up, and give the house a good cleaning. This may be especially necessary if the individual who owned the home was elderly, ill, or otherwise unable to care for their home. If the home is in bad shape, you may want to fix up the property. If you don’t or you can’t afford to, you still have some options.
Related Links:
Probate Real Estate Guide For Buyers & Sellers
How Estate Sales Work
If you’re interested in any of these of communities or live in one and are thinking of selling, talk to The Mesimer Team.
Photo Courtesy of Historic Kenwood Neighborhood | Captured during Historic Ken… | Flickr
St. Petersburg, FL: Pinellas County
St. Petersburg Communities
Allendale Terrace
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Coquina Key
Crescent Heights
Crescent Lake
Downtown
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Historic Kenwood
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Isla del Sol
Old Southeast
Placida Bayou
Snell Isle
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