Selling Probate Property
When is a Home Sold in Probate?
Mike Millea Probate Real Estate will guide you through the complicated process of selling probate real estate. His experience as a state attorney allow him to easily explain and counsel clients on the complexities of probate, trust, and conservatorship real estate, while completing highly profitable sales. When a person passes away without creating a last will and testament or without bequeathing their property to an heir, the courts must intervene and begin the probate sales process.
How Property is Sold in Probate Court
Just like in any other real estate transaction, the property is put up for sale and marketed like any other home. The representative or executor of the estate will hire a real estate agent, and sign a listing agreement with them. Because the owner of the property has passed away, the real estate agent and an independent appraiser appointed by the court determine the asking price of the property.
Once the price has been determined, the real estate agent can then begin showing the home to prospective buyers. When a buyer shows interest in the home, they must put down an offer along with a minimum deposit of 10%. The executor then has the option to accept or make a counteroffer to the potential buyer, just like in any other real estate sale. When the offer is agreed upon, it must then be approved by the court in order to prevent collusion between parties. Then, the property will be re-listed at the agreed upon price.
Once the 30-45 day period is over, the sale can begin. This is completed at probate court with the original interested buyer and any other people who are interested from the second listing. The property is then sold auction style, starting at the re-listed price. (let’s say it’s $945,500). Once the initial bid is met, each bid after that must be in increments of $5,000 (or more), until a price is settled on. Once the auction is over, the highest bidder must immediately hand over a 10% deposit and sign for the property. If nobody bids on the home during the auction, it will go to the original interested buyer.
Tips For Selling Probate Properties
- Hire a Specialist – Hiring a specialist like Mike Millea, who has practiced as both a real estate attorney and real estate broker, will help ensure the entire process is streamlined and efficient.
- Know Your State’s Probate Laws – In California, the property is required to be advertised for 30-45 days at the new asking price plus 5% and $500. Therefore, if there is an offer of $900,000 and the court approves it, it is then re-listed at $945,500.
- Study Probate Legal Jargon – There are many different terms related to probate court. Your real estate agent and attorney will help you through the process but for your own knowledge, it’s always a good idea to look up the common words used throughout probate in order to get a better grasp of what is going on. Here is a Glossary of Probate Terms, provided by The California Supreme Court
Let Us Handle Your Probate Real Estate Dealings
We know that the probate selling process can be tough and Mike Millea can offer guidance during these complex dealings. If you have recently become the executor of a probate, or have any other questions, contact our El Segundo office at (310) 939-9356. We serve the greater Los Angeles area and strive to provide all of our clients with expertise, honesty and integrity during probate, trust, and conservatorship dealings.