A probate sale may seem like a daunting process.
The truth is, it’s certainly not a simple transaction. A probate sale is a little more complicated than a regular sale, but with the right information and guidance, it can go a lot easier.
A Long Island NY home is sold in probate court when the owner of the property passes away. If there is no appointed heir, the home is turned over to the courts and then appointed to the closest relative as the executor to sell the property.
One of the responsibilities of an executor or administrator of an estate is the management of the deceased person’s property. Most of the time, it involves the sale of the property.
So how exactly do you go about selling a property in probate?
To begin with, you will need the help of a top-notch agent who has experience with probate sales.
That would be me, Rene Perrin. As we work together, the process will be far easier for you.
Here is a basic explanation of how the probate sale process works:
1. Appoint an administrator or executor
If the will named an executor, then that person is appointed as such. If there is no appointed executor, the closest relative will be appointed as administrator either by the court or other relatives.
2. Appraise the property
Appraise the Long Island NY home you wish to sell during probate. An independent certified appraiser can do the job. Keep in mind that the property must sell for at least 90% of the appraised value.
3. Obtain a petition to sell real estate from the court
When filling out the petition, make sure to include all information pertaining to the sale of the property. File it along with the independent appraisal and wait for the approval from the probate court allowing the sale.
4. Place the property up for sale
Your probate agent will list the home for sale and market it for exposure. Buying agents will know that the property is a probate sale. Even if an offer has been accepted, the seller is not yet committed to that buyer. The acceptance of the offer is conditional on court confirmation.
5. Seek confirmation from the court
The estate representative, through the probate attorney, will then submit to the court to confirm the sale. If all parties approve, a date will be set for the sale to be finalized in court. You also need to arrange for a 10 percent deposit on the purchase price from the buyer before the scheduled date of the court hearing.
6. Advertise the sale
Announce the sale along with the offered price from the buyer with a local newspaper. This is done to inform the public about the property sale during probate period. Doing so also allows for open bidding at the court hearing among other interested parties.
7. Attend the hearing
Attend the hearing and wait for the bidding process to proceed. The judge will ask if there is anyone present who would like to bid on the home before approving the original buyer offer. After the final agreement is done, the winner must deposit a cashier’s check to the court after confirming the bid. The original buyer's deposit will be refunded upon confirmation of the new buyer's winning bid.
8. Complete the sale
Close the contract. Make sure the financing is enough to cover the cost of the property and the full amount goes into the estate fund.
For more information on selling real estate in probate, visit my website at http://LongIslandProbate.com/.
Call me, René Perrin at 516-802-3785. Let me assist you in selling your property in probate.
