7 Tips for Executors Tasked With a Difficult Job: Selling the House

3. Check if the estate qualifies for streamlined probate

Everyone’s heard horror stories of probated estates where the process drags on for years — but that doesn’t have to be the case.

“In a traditional, formal probate process, the timeline is six to seven months or longer. That’s why many states have adopted an efficient probate system with an abbreviated probate process,” Palley says.

Many states have adopted the Uniform Probate Code, which is designed to modernize and streamline the probate process so it’s shorter and easier to get through.

Other states have developed laws and regulations to simplify and shorten the probate process, such as California’s Independent Administration of Estates Act (IAEA).

“Rather than go through all of these steps of making it a formal process and paying a ton of money in attorney fees and court costs, you may be able to have an abbreviated probate instead, which can be done in a couple of months in some states,” Palley advises.

“This works as long as everyone in the family is on board and there are no creditor problems or anything else.”

4. Don’t hire an agent until the court names you as executor

It’s true that failing to complete every step of the probate process within the required timeline can land you in legal hot water. However, jumping the gun can get you into trouble, too.

“Generally speaking, you have no legal authority until the court has named you the personal representative. So, in most cases, you really can’t do anything,” Palley says.

“You can’t sell the house, and in reality, you can’t even list that house for sale. You also can’t clean the house, discard stuff, or have a garage until you’ve been named as the executor by the court. That’s why I’m a big proponent of getting probate filed as quickly as possible.”

Not only can you not list the house, but you also can’t sign the listing agreement with an agent until you’ve been legally appointed as the executor or personal representative by the probate court.

“As soon as a personal representative or executor to the estate is officially designated by the court, they can then engage a Realtor,” says Rob Kittle, a Certified Probate Real Estate Specialist (CPRES) and top-selling agent in Fort Collins, Colorado. “The agent will need proof that they are the legally appointed executor, which means that they are legally able to sign the listing agreement and the deed.”

However, just because you can’t sign any documents to officially hire an agent, doesn’t mean you can’t consult with one.

“Technically, you cannot hire an agent until the Letters of Administration (if there’s no will), or Letters Testamentary (if there is a will), are issued by the court to name you as the personal representative,” Palley says.

“However, there’s certainly no reason that you can’t interview or select the agent and discuss things like the list price, and if you should maybe paint that bedroom or install new carpet. The agent can also prepare a market analysis report and come up with a game plan.”

5. Make sure your agent has experience with probate real estate sales

Perhaps even more important than when you hire your agent is who you hire to help sell the house during probate.

“Selling a home during the probate process is much more difficult than a traditional home sale,” Kittle says. “So it’s important that your agent knows about the legal aspects of probate, especially if there’s a big legal battle going on over the estate.”

Selling a house during probate demands extensive expertise. You must adhere to strict deadlines and legal requirements, particularly if the sale needs court confirmation through an overbid process.

That’s why it’s important to hire an agent who has probate experience, even if you’re already working with a probate attorney.

“In many ways, a probate sale and a regular sale are going to be almost identical, but it’s definitely important that your agent has probate experience, just so that they understand the differences,” Palley advises.

“The biggest difference is that a probate purchase agreement contains a couple of different clauses. It lays out for the buyer that there might be a need for probate court confirmation, which would likely delay the sale. And there are several disclosures that a probate seller is not required to provide.”

In some states like California, probate sellers are exempt from certain statutory disclosure requirements because these transactions are considered “court-ordered sales.” This exemption includes the Natural Hazards Disclosure and Transfer Disclosure.

A probate agent can also help you figure out what to do if your inherited property has a current tenant with a lease agreement and whether the home sale needs to wait until after the lease is up.

If yours is destined to be a complex probate home sale, it’s probably best if you hire an agent who’s certified to handle probate sales. Trained by the U.S. Probate Services, a Certified Probate Real Estate Specialist (CPRES) has the specialized knowledge to deal with the complicated issues that sometimes arise during a probate sale.

6. Sell the house as soon as possible in the probate process

Prioritizing during the probate process isn’t easy, but one thing you definitely want to tackle as soon as possible is selling off any assets costing the estate money.

“We usually want to deal with the important assets first, which typically is going to be the house,” Palley says. “Dealing with the real estate is at the forefront because it incurs costs while sitting there. We’re paying a mortgage, utility bills, taxes, and insurance — all things that cost the estate money.”

Of course, that’s easier said than done. You can’t sell the house until you empty it first, which requires going through all of the decedent’s personal property, including private and intimate items.

With grief clouding your judgment, you might hang on too much or end up selling treasured, valuable items for a song simply to get through the process as quickly as possible.

If house-related expenses are draining the estate, but you’re not in an emotional state to get the home ready to sell, it may be time to bring in the experts.

For smaller estates, you might consider hiring a personal organizer or decluttering expert specializing in estate cleanouts. Their services typically cost about $60 to $75 per hour, and they can help you prepare the house efficiently.

For larger, more valuable estates, it’s advisable to hire a reputable estate sale expert who is a National Estate Sales Association member. An experienced expert can assist in sorting through the decedent’s belongings and ensure that items are sold for their true value, all in exchange for a percentage of the estate sale proceeds.

Court-appointed executors who are not emotionally connected to the deceased can also have issues clearing the house.

Often, an outside executor is needed when there are multiple heirs who disagree about how the estate should be handled. When that’s the case, the home sale may be delayed until decisions are made about what happens to the contents inside.

If heirs squabbling over belongings is holding up the home sale, you may be able to remove disputed heirlooms from the property for safekeeping until a decision is reached. That way, you can move forward with the home sale even if some of its contents are still disputed.

7. Use estate assets to improve the property before selling

Sometimes probate properties take longer to sell than traditional home sales. While there are multiple reasons for this, a big one is that the executor is attempting to sell the property as-is.

“One problem that can arise during probate is selling the property as-is. Maybe the heirs are out-of-state or don’t have the resources or the inclination to fix the house up before selling,” Kittle says. “It becomes a little tricky if the lender requires improvements or repairs, but they aren’t done prior to closing.”

Motivated by the desire to get the home sold as quickly as possible, some executors want to list the house on the market immediately, without spending any estate assets on repairs or improvements.

Unfortunately, you’ll have a hard time finding a buyer willing to pay what the house is worth if it’s outdated or rundown. The majority of buyers are looking to avoid renovations and problems with plumbing or electricity.

Plus, as Kittle points out, the buyer’s lender may insist that some repairs or improvements be made before they approve the loan. So, you’ll wind up spending that money you thought you were saving by selling as-is, but you’ll still be selling at that lower, as-is price.

If there’s money in the estate — either in bank accounts or in smaller assets that can be sold off — it’s wiser to invest a little in fixing up the property before listing it so you can sell a little later but at the best price.

However, don’t let repairs or improvement projects delay the home sale too long. “I can think of this one case where it took my clients literally a couple of years to get the house ready for sale,” Palley says.

“They were working jobs during the week, and then fixing up the property on the weekends, all while dealing with the grief. Whereas if they had just hired some people to fix the house, the thing would’ve been sold significantly quicker.”

In this scenario, any extra money gained by making improvements was lost in the costs of maintaining the property for several years. Had they spent money on a contractor, they could’ve more than covered the expense by getting the home sold faster.

Managing numbers during a time of mourning is challenging, but as the executor, it’s a necessary responsibility. You need to sit down with your probate agent and do the math to figure out if it’s financially smarter to sell as-is, hire a contractor to fix it up, or spend time and money making the repairs yourself.

Final advice: Selling real estate during probate requires expert help

Wading through all the red tape and paperwork of the probate is a tricky business when you’re weighed down by the responsibility of fulfilling someone’s last requests.

Navigating the sale of a house during the complex probate process will be easier if you familiarize yourself with your state’s probate laws, seek out expert legal advice, and enlist the help of a top real estate agent with probate experience.

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