What You Need to Know to Sell a House in Probate
Posted by Techyscouts | Posted on 08/19/2019
Probate sales may seem like an intimidating process. It’s certainly not simple, and can be very stressful on the family, but with the right know how, and some help from Mike Millea, it can go much more smoothly
First of all, what is probate real estate? When the owner of a property passes away, their real estate is sold in probate court if there is no appointed heir when the owner passes. The property is turned over to the courts and then appointed to the closest relative as the executor to sell the property.
After all the steps for selling have been taken care of, the probate court can then handle the proceeds being split between beneficiaries.
It may sound like a lot to handle, but the short answer to “how to sell during probate” is to hire an experienced, top quality, real estate professional who can help you navigate the ins and outs of probate sales.
So what is it that you must know when selling a house in probate? It can seem tricky, but probate real estate agent Mike Millea and his team are dedicated to creating as much ease as possible in such a difficult time.
Appointment of an Administrator or Executor
If someone has been appointed in a will by the decedent, and they are willing to act as the executor, then that person is simply appointed as such. However, if there is no appointed executor, then the closest relative will be appointed as an administrator either by the court or other relatives.
Sale of the Property
First thing’s first, get the property appraised. Probate real estate broker, Mike Millea and his team are more than equipped to assist in this process, but it is important to know that the property must sell for at least 90% of the appraised value.
The home will then be listed for sale and marketed for exposure. During this process, the home will be listed on multiple listing services so that it can be seen on sites like Realtor.com and Zillow. Buying agents will know that the property is a probate sale.
Buyers will then make an offer accompanied by a 10% deposit, which may be rejected by the sellers. The offer is subject to the court’s confirmation, and the seller is not committed to that buyer, even if their offer was accepted. The estate representative, through their probate attorney, will then submit to the court to confirm the sale. Once all parties can agree, a future date will be set for the sale to be finalized in court.
The Overbidding Process
Before the original buyer offer can be approved, the judge will ask if there is anyone in the courtroom who may like to bid on the property. The next bid must be 5% plus $500 above the original buyer’s offer. In a similar manner to an auction, the judge will then accept additional bids. This will go on until the highest bid available has been made at the confirmation hearing. In the event that a new buyer wins, then the 10% will be refunded to the original buyer.
When accepting an overbid, the buyer then must give a 10% deposit in the form of a cashier’s check. The check is then given to the Executor at the hearing by the winning bidder. A contract will be signed that has no contingencies and escrow usually closes 15 days after the hearing.
Contact Your Los Angeles Probate Real Estate Broker
We understand that the probate process can be daunting, but it may also allow you to sell properties you otherwise couldn’t. While it isn’t without its complexities, Mike Millea has been helping clients of the Los Angeles area get great deals on probate real estate for years, and we work to keep the process as simple as possible. If you have any further questions or inquiries about probate real estate, please contact Mike Millea today, we will be happy to help you sell your probate real estate!