If you have to sell a house in probate, there are some different things you need to think about that wouldn’t be an issue otherwise. Figuring out how to best deal with a probate listing doesn’t have to give you a headache.
There are best practices you can follow that will help you navigate a probate sale. Continue reading this article to get the help you need.
The 411 on Selling a House in Probate
When you’re selling a home in probate, you need to check for the local laws. You should also know that each case is a little different but we’re going to give you the best practices for making a probate sale.
Probate property has to pass through probate court and usually isn’t sold unless the money is going to be used to pay off creditors.
Probate property can be sold by the executor of the estate, the administer of the estate or by the court. Heirs can also seek to sell the property after they’ve inherited it but by that time, the home is technically no longer probate property.
1. Probate Property Insurance
No matter who is selling the probate property, you need to make sure you have probate property insurance on it. When the deceased passed away, their homeowner’s insurance is likely no longer valid. The current owner has to purchase the insurance to make sure the home is properly insured during this process.
2. Help Buyers Buy
If you’re trying to sell a house in probate, you should help people that are interested in buying understand how the process works when the home is in probate.
Most homes in probate aren’t fixed up before they are sold and buyers understand this. You should also make sure that you price the home to sell and aren’t pricing it on emotion.
The Court Is Selling the Property
Each state has a little different law when it comes to selling a home in probate. If the court is selling the property then it is put on auction by the court. List the property on the court’s local website so buyers know it is available and when the auction is happening.
Some people will search obituaries and look for probate properties so lookout for phone calls from numbers you might not know. If they call you, inform them about the auction or how they should submit a bid for the property.
The Executor Is Selling the Property
If you’re the executor of the property and are trying to sell it to pay off creditors then request people send an offer to you. You may list the property through a real estate officer but it isn’t essential. Many states require the court to approve offers that come through which can take several weeks.
3. Take the Time to Fix Up the House
If the situation for the home is not dire and you have time to get the most out of the home, there are some things you can do to make sure you get top dollar. While most probate property is sold as-is, they also bring an as-is or below price.
Understand the Local Market
Understanding who you’re selling to, what they want and what is available is important when you want to get the best price for the home you’re selling. Look on sites like Zillow and see how long homes like yours have been on the market. If you don’t see a lot of high numbers then you’re likely to be able to get some interest in your home which leads us into the next point.
Set the Right Price
If you find that people are looking for homes like the one you’re selling then you can set the price a little higher than you would have in a buyer’s market. Don’t go overboard but also don’t undersell the home or people might be skeptical why it is so low.
Dress Up the Home for Curb Appeal
The way the home you’re selling looks on the outside has a lot to do with how much interest people have in the home. If the home looks drab and dull, potential buyers are likely to pass it by but there are some easy updates you can do to get people to take a look.
If you have a light fixture on the porch, update it and put a more attractive on in. Get a new door or fix up the pathway to your door. You want people to feel like the home is calling to them when they come to take a look.
Put a Fresh Coat of Paint Inside the Home
A fresh coat of paint doesn’t cost a lot of money but it can make a big difference in how people feel about the home. Maybe Great Aunt Mary loved her bright candy apple walls but that isn’t going to work for everyone so try going for a more neutral tone throughout the home.
You want people to be able to envision themselves in the home when they do a walkthrough but if it is highly personalized to someone else, that’s going to be difficult.
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