Dealing with a probate court while managing a deceased family member’s estate can make an already difficult situation worse. Selling a house in probate can only make matters worse unless you know where to turn.
Because few people ever get an in-depth look at the real estate probate process, we’ve compiled six questions and answers to help demystify it.
Probate is the fair distribution of an individual’s property following their death. It may involve establishing the validity of a will (if there is one), changing the title to real property, and determining ownership of assets like bank holdings, stocks, or bonds. Some things are not probated, like in situations where right of survivorship exists. (Ex. If there is a joint owner of a house or a life insurance policy cites beneficiaries.)
There’s no fixed cost once probate enters the picture, but court costs and fees alone can make it a pricey process in the end. According to the American Bar Association, probate and administrative fees can consume between 6% and 10% of a person’s estate. The lack of a will, or challenges to an existing will, add to that cost. Factor in paying off any creditors and the financial and emotional cost of the probate process climbs.
It’s traumatic enough to deal with the death of a loved one. Dealing with the various parties scrambling to receive funds from an estate only makes things more difficult. Those parties include creditors collecting on what they’re owed, funeral-related vendors (funeral home services, burial, etc.), relevant state and federal tax offices, and the like. After that’s taken care of, what remains is distributed to heirs or beneficiaries named in the will. If there was no will at the time of death, state law determines property distribution.
If you’re the executor of an estate, you can sell real estate held by the deceased — provided that it was not willed to a beneficiary — to help cover this cost. After the house is sold and the proceeds are applied to the probate cost and estate debts, the probate court splits any remaining profits among the beneficiaries.
Jurisdiction can become confusing in this situation. The probate process applied to the house you want to sell is governed by the state in which the house is located. If the deceased possessed property in another state, supporting administration is implemented. Simply put, the probate process happens in whatever jurisdiction the property is located in. The court doesn’t care where you live or where the deceased may have lived.
The executor may accept an offer from a buyer, and sell the property while the probate is still in process. It is tedious and presents another issue involved in probate house sales: monitoring the sale to ensure adherence to strict state rules. In addition to this monitoring, the probate court must approve the terms of the sale.
Yes. HomeGo House Buyers is familiar with probate court, its process, and common speed bumps. Our insight into what it takes to sell a house in probate allows us to move things along quickly and efficiently. Although there’s no getting around the legally mandated steps of the process, we can typically move faster and close sooner than you could with a traditional home sale. Every day matters when selling a house in probate, since the executor of the property is still required to pay taxes, electric bills, and insurance on the home. (When you add a Realtor’s commission, the costs climb even higher.)
Selling a house in probate to HomeGo:
Here’s all it takes:
The probate process can create a great deal of stress and anxiety at an already troubling time for you. It can also generate a lot of bills. HomeGo House Buyers empowers you to simplify a probate house sale and get on with your life. Contact us today for immediate peace of mind about your probate house sale!