What You Should Know About Dealing With Probate Real Estate

What You Should Know About Dealing With Probate Real Estate

You may have a lot of questions that you want to be answered when dealing with a probate property. Here are some things that you need to know about probate property and how you can handle them.

First, let’s talk about What Is Probate?

Probate is the legal process following a homeowner’s death if the property was not in a trust or owned with another person that did not have full rights of survivorship. In many cases, a property that needs to go through probate needs to be sold so that the proceeds can be split up between many beneficiaries. This happens if it is not indicated in the will who the new owner is. The very first thing that you need to know is where the probate needs to occur. You can start with the municipality where the property is located. Several states require the probate to be done in the county in which the property is located. Afterward, you will have to hire a lawyer to draw up the paperwork after, of course, studying and analyzing the will. That’s the time that the paper works should be taken to the courts. The judge determines who is the rightful owner based on the previous owner’s will. It is very rare that the judge rules against the will.

What You Should Know About Dealing With Probate Real Estate | The things that you need to know

Who Pays For Probate?

You have two options for this. Either get it out of your own pocket or arrange for it to be taken out at closing. The executor of the estate will determine a listing price for the property, negotiate the sale price and execute the sale contract. Your lawyer should their invoice to the title company handling the real estate transaction. Then the probate should be taken out or subtracted from the proceeds of the sale of the property. Fees can go as big as a hundred up to a thousand dollars. It values per state and the amount of the property being sold.

Can I List Probate Real Estate?

Listing the property or selling it while it is under probate is prohibited unless you have approval from the court. In order to get approval, you will have to petition the court to list the property. When it is listed available for sale, you can only go as far as taking offers on the property and having a contract. But the actual closing should not take place until the probate is complete. When the probate case is filed, the title company knows who now can legally sell the property. 

How Much Should I Sell For?

You have to have the property appraised so you know how much it is worth in order to know how much you can ask for the real estate. If there are any problems with the structure, it must be disclosed on the contract for sale. When you receive an offer, you definitely must consider the probate cost. If what you own is a vacant lot, you’ll have to make sure that the offer is enough to cover all the bills. Most houses and other types of real estate will sell for way more than the cost to have the probate completed. But if you want to sell the property in probate real quick, then you should also consider listing it on the lower end of the market comps or appraisal price. this ensures your property can receive offers very fast.

I’ve Accepted An Offer, Now What?

when you have negotiated a price you are willing to sell for or when you have received an acceptable offer, you can then execute the contract. If you have any inquiries bout the contract, reach out to a real estate lawyer to help you understand all the terms, conditions, and riders necessary to complete the deal. When the title company is chosen, make sure you provide the probate lawyers invoice to them so they can take care of the bill out of your proceeds.