Finding a probate real estate agent to liquidate an estate is very important. Probate is a court-supervised legal process by which the validity of a will is determined. During the probate process, all the property, assets, debts, and claims of the estate are inventoried and tallied. All valid claims are then settled and the remainder of the estate is distributed among the beneficiaries in accordance with the will. If that sounds complicated, it is – especially when it involves property that must be sold. Often times the decedent’s real estate holdings has to be sold in order to cover debt claimed against the estate or so that the proceeds of the sale can be distributed to the beneficiaries. Selling probate property is a much different animal from a traditional real estate sale. That is why experience matters when choosing a Long Island real estate agent for your Long Island probate property.
Traditional vs. Probate Sale
The traditional selling of real estate requires a special skill set, knowledge of real estate laws, traditions and guidelines. Each transaction comes with its own unique set of challenges. Selling probate real estate is an area where few traditional real estate agents are able to successfully navigate. Lack of knowledge can be detrimental to the client and this area of real estate sales should be practiced only by a specialist. Probate is a court proceeding and probate home sales require an in-depth understanding of the associated legalities. Understanding the procedure and the many different timelines is especially important because failing to act in a timely manner can be financially detrimental to the heirs. Failure in meeting court mandated time-lines can set back the proceedings, months, if not years which can create additional stresses. Finding a Long Island Real Estate Agent specializing in the area of probate real estate sales is very difficult. Most agents simply do not have the qualifications to adequately represent their clients in this very sensitive area of real estate.
Probate real estate sales come with many constraints that is not present in a traditional real estate sale. In some cases, the need for court supervision can significantly lengthen the process. This is in addition to all the other unique challenges that can pop up in any real estate transaction. The fiduciary duty of the executor is to act in the best interest of the estate at all times. This is a legal requirement which includes all aspects of listing the property for sale. If the court grants independent administration, then the process is simpler with less necessary court intervention. Dependent administration is more restrictive which can lead to a significantly longer process. If you are the executor or personal representative of the estate and are charged with “selling a home during probate, you must always act in the best interest of the decedent’s estate” – not in your own interests. “This means you’ll need to follow state probate laws and any potential directives from the probate court judge when setting the price and, in some case, the timeline” (HomeLight).
Probate real estate sales can be significantly different from traditional real estate sales. It requires the services of a specialist with market knowledge and experience in working with the courts, deadlines, attorneys and other industry professionals. If you are the personal representative (executor, administrator) of a will that has real estate that needs to be liquidated, you will need a knowledgeable agent. If the property is on Long Island, I can help. I am a Certified Probate Real Estate Specialist here to help you navigate this very delicate area of real estate sales. (Call (631) 357-4819 to discuss more.)
Steps in Probate Property Sale
Wherever the property is located on Long Island the laws governing probate sales are the same. Here are the typical steps involved in putting a property on the market during probate. As you’ll see, it’s a process that demands a real estate agent with extensive experience in this area.
Because a probate sale includes such heavy court involvement, the first thing you will need to do is to hire a probate attorney to guide you through the complex process.
DETERMINE PROPERTY VALUE
Before listing the house for sale, you will have to determine its worth, it’s fair market value. The best course here is to hire a Certified Probate Real Estate Specialist who will perform a Probate Comparable Market Analysis. This document will give the court and attorneys information regarding the value of the real estate at the time of death. Real estate values often change throughout the process and may require updates to reflect more current values when the house is listed for sale. The PCMA is also used when filing the necessary tax returns.
GET COURT PERMISSION
The judge in the Surrogate court will determine whether to award dependent administration which is restrictive and requires court monitoring or an independent administrator which is less restrictive and can lead to a quicker sale of the property (ies).
LIST FOR AUCTION
In some cases a property will need to be listed for auction. Your probate real estate agent will be able help you to select a reputable auction company on Long Island.
SECURE CONTRACTED SALE APPROVAL
In the case of a dependent administration, the court will have to approve the sale price of the property . Once there is an acceptable offer it will have to be presented to the judge. The court a has a certain percentage of the value that it will require. A real estate agent who is knowledgeable in the probate process will be able to provide guidance to the legal representative and other interested parties on how value will be be determined by the judge, how to expect the court to rule on offers and provide options on how to proceed in different scenarios.
There are many complications that can crop up in a probate real estate sale. Strict adherence to time-lines and using the correct documents is very important. An oversight can result in starting the process all over again adding additional time to the already lengthy process. You and your Long Island Real Estate Agent will have to be especially organized to ensure the desired results.
Sometimes, an heir will need access to quick cash and is willing to settle for less of their inheritance. A Certified Probate Real Estate Specialist will be able to supply information for legal reputable firms that provide this service.
Does experience matter when choosing a Long Island real estate agent for your Long Island probate property? Yes, it matters immensely. If you find yourself in this situation, then you definitely need an agent with probate sales experience.
For an agent with that kind of valuable experience, contact us today! (631) 357-4819
For a Free Kit, Visit Our Probate Website at https://www.newyorkprobatehomesales.com/kit221
- Free eBook “The 7 Biggest Mistakes Most Administrators and Executors Make While Going Through Probate and How You Can Avoid Them”
- Glossary Term Cheat Sheet – Your shortcut to the essentials to help you stay on point
- Probate Timeline – Know what to expect when, boost your confidence, sleep better and avoid unwelcome surprises
- Special Report – Aka “Going Through Probate for The Inexperienced” this handy guide explains to you step by step what you can expect, key terms, when selling real estate makes sense or not and how to make important decisions
- How to build your team of pros – Don’t take this on alone and make sure you find the best professionals to work for you during this difficult time
- Flow Chart of Executor / Administrator Duties – 10 Most Important Probate Executors/Administrators Duties and Responsibilities Guide
- Free Probate Real Estate Comparable Market Analysis – Know what the real estate is worth . Discover best strategies and ways to move forward