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Selling a House in Probate in Twin Cities, MN
Quite often individuals are left with a family home as a result of the passing of a loved one. This means you’ve likely inherited a house.
In many cases, this means that it is a second home and not one that they wish to keep so they want to sell it. When the Will is going through probate, the heirs often want to sell the house…even while the house is in probate..
Unfortunately, selling a house in probate is not an easy process and can be lengthy and somewhat frustrating.
There are cases where you can sell a house without probate.
Selling a House While in Probate
The individual that will be responsible for seeing that everything that has been outlined in the will is carried out will be the administrator or executor. The executor will be the one that has been named in the will to act as such, and if no one has been named then usually the closest relative is appointed to the administration position which can be done by the court or other close relatives.
Selling a House In Probate
When selling a house in probate it has to go through a series of steps that are regulated by the courts. These regulations may include deadlines as a well as documentation that has to be paid close attention to through the entire real estate in probate sale process. There are many details involved in.
Other individuals that may be involved in the sale of the home is the appraiser, the realtor, and an attorney as well as the courts itself.
Selling a House Before Probate Is Granted
When it comes to selling a house in probate the value of it has to be determined first. This is done through a proper appraisal and most often the realtor that you choose to handle the sale of the property will be able to recommend a proper appraiser. The rules are that the property must sell for at least 90% of what it is being appraised at.
It may not always be necessary to have an independent appraiser as some Realtors are experienced in probate and trust sales, and are considered credible when placing a value on the house. This agent will then usually carry through with listing the house for sale.
You can then go through with. A probate sale is granted beginning with this step.
Selling a House Once Probate is Granted
The big responsibility for selling a house once probate is granted partly becomes the responsibility of the chosen Realtor. This professional will work on this by using many different resources.
It usually involves different segments which include the proper signage as well as different types of advertising placed in different media’s.
In addition to this, the Realtor will hold open houses to encourage other real estate agents and potential buyers to attend. Then when viewings are set up the Realtor will attend to the showings.
These are all important steps that help when selling a house in probate.
Selling a House After Probate
Quite often potential buyers are looking for a cheap buy when it comes to a home being sold in probate.
What has to be remembered is that there are court rulings in place regarding the sale, which is the offer has to be within the 90% of the sale appraised value. The Realtor again will play a big role here in making sure that the seller is able to negotiate the proper terms that are going to fit in with the requirements for both the buyer and the seller. Selling a house after probate allows the executor or administrator to enter into the necessary contracts.
Once this has been completed and the offer has been presented and accepted, then the court requires a notice of proposed action to be mailed to all the heirs that were named in the estate. This allows the heirs 15 days to present any objections that they may have. If none is raised, then the sale can go ahead without the necessity of a court hearing. This is where it can sometimes become frustrating for those selling a house in probate.
In some cases when selling a house in probate it may be mandatory that the notice of the sale is published in a local newspaper. This could be because the executor or administrator did not have all the powers necessary as stated under the IAEA, or an objection was lodged by one of the heirs.
A court date has to be set for the confirmation hearing which usually takes place between 30 and 45 days after filing of the application and the details again may be mailed to all parties concerned. During this time the realtor will most likely continue to show and advertise the property as there may be an opportunity to increase the sale price.
It is not unusual, for sometimes during the court confirmation hearing when selling a house in probate, the original bid that was accepted becomes overbid by someone else that is interested in buying the home. If this happens the party coming in with the second or higher bid has to attend at the hearing and bring with them a cashier’s check. The amount of this check must be at a minimum of 10% of the offering price they have placed on the home.
If it turns out that there are more than one over bidders then the outcome is, the bidder with the highest bid is awarded the purchase of the home. What happens is that this a bidder submits the cashier’s check to the executor or administrator. This money is then held in escrow for a period of time, which is usually 30 to 45 days following the court hearing.
Selling a House Without Probate
There are some stipulations within the estate law that do allow for selling a house without probate. Normally the executor or administrator of the will doesn’t have the necessary authority to sell a house unless probate is in place. Probate may be possibly avoided if the deceased placed the home in a living trust while still living.
It is really important that the proper professionals are chosen to assist you through the probate sale as it can be most complicated and it is taking place at a time where family members are going through the stress of losing a loved one, and this is just a added burden for them to have to attend to. When the process is followed properly it usually flows in the proper manner and the big concern is having the right realtor on board to get the price that has been placed on the home by being pro active and energetic in their selling responsibilities.
Want to find out more? Here’s an article we have that shows you how to sell an inherited house.
If you want to know your options when inheriting a house, read this article.
Cash offer?
Find out whether you can get a cash offer to buy the house in probate. We buy houses cash in Twin Cities and can make you an offer. We have experience with helping people sell a house fast even when it is in probate or about to go through the probate process.
If you have any questions about how this works, please call us at 612-251-4974. We’re here to help…even if you decide not to sell the house.