When you have to deal with probate property, you need to know certain things about this specific situation. Keep reading for an overview of what probate is, how lawyers and real estate agents can be of service to you, and what to look for in a real estate agent.
Probate is a specific set of circumstances that some home sales fall under. Sometimes homeowners pass away without leaving their property to either a trust or a single individual with full survivorship rights. In most of these cases, the home in question needs to go through a probate process wherein the home is sold and the proceeds are divided among beneficiaries.
The first part of the process is ascertaining where the probate needs to happen, and the optimal starting point is the specific municipality the property situated in. Many states mandate that it happen in the county where a property is located. The next step involves hiring an attorney to review the will, if there is one, and then start drawing up paperwork.
Once the paperwork is ready, you need to file it with the court system. A judge is assigned to determine the rightful owner or owners of the real estate. Judges only rarely rule against the wishes of the previous owner as stipulated in their will. This process obviously differs from a traditional seller-to-seller transaction since the previous homeowner is deceased and the buyer’s money goes instead to a party of beneficiaries.
If you’re an estate beneficiary or the one responsible for executing the will, then a probate lawyer or attorney can be a useful guide to you throughout the process. They can help you with the identification of estate assets and beneficiaries before distributing inheritances and assets. Probate lawyers are state-licensed attorneys who are also known as estate attorneys.
Whatever you call them, they are responsible for many different tasks, including collecting any proceeds coming from life insurance policies and getting appraisals for the real property of the decedent. Next, they assist with paying debts and bills while also preparing and filing court documents; along the way, they resolve issues relating to income, estate, and inheritance taxes. Once all the numbers are done and the books settled, they oversee the legal transfer of assets to beneficiaries.
Having a probate real estate agent to work with can help you out just as much as having a probate lawyer, if not more so. Whereas the estate attorney prepares the home and property for legal selling, it’s the probate specialist who can actually make it happen.
They know how to price the property properly, but they also know how to price it to sell quickly. This can be important to you and other beneficiaries who would probably like to close out the estate and move on with life in a time of mourning and loss.
Probate properties are sometimes sold on the open market but also in public auctions. In either case, a real estate agent who has multiple transactions already under their belt knows what to do. Since you’re already dealing with the personal loss of someone you love and also possibly being the executor of a will, it’s very useful to have someone who can handle the mammoth task of marketing a home for sale.
Effective probate real estate specialists not only market the decedent’s home and property but also know motivated buyers looking for such opportunities. All-cash investors often seek out such properties, but they also know it’s bad form to contact families directly after seeing probate listings in local publications. They form connections with other brokers to find out about such listings.
All-cash investors are common buyers of these homes because homes from deceased owners usually come without strings, meaning they don’t have to deal with mortgage issues or liens against the property. Such properties are also sometimes sold for as much as 10 percent under market value to speed things up.
A great agent can line up multiple prospects to generate interest in the home you need to sell. In the best of cases, they’ll even put them against each other to start a bidding war that drives up the potential estate value. In doing so, all the beneficiaries will profit more.
While you want a broker who can make the most of your looming transaction, you don’t have to settle for hoping for the best. Asking the right questions when you interview such professionals will quickly show you who is ready for the challenge and can help you the most. The following are 4 specific questions you should ask during your interviews to find the right person:
1) Have You Ever Sold Probate Or Trust Property? Anyone who answers ‘no’ should probably be shown the door. Agents that say ‘yes’ still need to be pressed for more information, including details like years of experience, number of transactions, and court representation.
2) What Distinguishes You From Other Specialists? Newcomers to the industry or the area might stumble in answering this. However, agents who know the market can speak positively about their communication skills, a track record of customer satisfaction, and comprehensive marketing skills. This is a great time to really gauge how well a he or she listens and talks to you.
3) How Would You Market This Estate? Probate sales are obviously a very different animal than traditional sales, so the agent should have different marketing tactics that fit the situation. Ask about previous examples of what they’ve done.
4) Do You Have Documents And Lists I Can Look At? You’re actually looking for two different things here. First, you want references you can contact and verify their background and skills with. Second, you want to see sample documents that reflect disclosure forms and contract documentation in plain language you can understand.
Probate processes are never fun, but they need to happen in order to close out estates. Beneficiaries, whether listed by a will or determined by a judge, can’t take legal ownership of their assets until the home and property are sold. An estate attorney helps on the legal side, but it’s a real estate broker that can actually market the home, find buyers, and make the sale. Having the right one at your side seriously minimizes an already stressful process.
For any kind of assistance regarding the probate process for real estate, call Scott and Lisa Jensen today at (720) 352-7704 or email us at [email protected] or use the contact form below.
For more information specifically about our partnership with Denver Estate Help, our probate service that makes estate properties ready for market with professional preparation and quick turnaround times, click here.
Scott Jensen, a Denver Native, started his Real Estate career off investing. He owns multiple properties from Mobile Homes to an Apartment building. He has built, developed, and helped many clients buy and sell.
Lisa grew up in Fort Collins, Colorado and moved to Denver in 1999. She loves this city and can’t imagine living anywhere else. Real estate investing is what brought Lisa to be a real estate broker.
