One of the most important steps to take if you want to sell a house during probate is to hire a real estate professional who is certified as a, “Certified Probate Real Estate Specialist (CPRES) so the process will be easier for you. It’s also important to keep in mind that some states have different probate laws than other states. Having said that, below is a basic explanation of how the probate sale process works
Appointment of Executor or Administrator
If someone was appointed in a Will by the decedent who is willing to act as the executor, then this person will be appointed as such. If there is no appointed executor, then the closest relative will be appointed as an administrator either by other relatives or the court.
Sale of the property
The first step you should take in selling the property is to have it appraised first. The property will need to sell for at least 90% of the appraised value, and it’s easy to find an appraiser online or to get a referral from a real estate agent.
The home then needs to be listed and marketed (if you want to hire an agent to sell the house). An agent will list the home on the MLS service, and buyer agents will be aware that the property is a probate sale.
When a buyer makes an offer, their offer must be accompanied by a 10% deposit, which may or may not be rejected by the sellers. The offer is also subject to the court’s confirmation and the seller isn’t committed to that buyer even though their offer was accepted. The estate representative will then submit to the court to confirm the sale through their probate attorney. If all parties involved agree, then a future date will be set for the sale to be finalized in court.
A Notice of Proposed Action is mailed to all heirs when the property has an offer accepted. The Notice of Proposed Action will state the terms of the proposed sale. The heirs will have 15 days to review this notice and pose any objections if they want. If, however, there aren’t any objections, then the sale may processed without a court hearing.
The Process of Overbidding
Before the judge approves the offer of the original buyer, the judge will ask if there is anybody in the courtroom who wants to bid on the property. The next bid must be 5 percent plus $500 above the initial buyer offer. The judge will also accept additional bids in the same manner as an auction until the highest bid available has been made at the confirmation hearing.
In the event that a new buyer wins, then the 10% deposit will be refunded to the original buyer.
After the overbid is accepted, the buyer needs to provide a 10% deposit in the form of a cashier’s check. This cashier’s check is given to the executor at the hearing by the winning bidder. A contract will then be signed, and this contract must have no contingencies. Escrow usually closes within 15 days after the hearing.
If you or someone you know is in the process of trying to sell a house that is in probate, then you’re likely in need of assistance because a probate sale can seem like an intimidating process. However, 123soldfast knows how to sell houses during probate, and we’ve helped lots of people who were in your situation.
Give us a call at 713-322-3861 and we’ll be happy to help!