{"id":317166,"date":"2024-08-09T05:53:15","date_gmt":"2024-08-09T09:53:15","guid":{"rendered":"https:\/\/www.houzeo.com\/blog\/?p=317166"},"modified":"2025-02-07T02:41:41","modified_gmt":"2025-02-07T07:41:41","slug":"what-is-a-probate-sale","status":"publish","type":"post","link":"https:\/\/www.houzeo.com\/blog\/what-is-a-probate-sale\/","title":{"rendered":"Probate Sales: What Sellers &#038; Buyers Must Know"},"content":{"rendered":"\n<figure class=\"wp-block-pullquote\"><blockquote><p class=\"highlight\"><strong>\u270f\ufe0f<\/strong> <strong>Editor&#8217;s Note: <\/strong>Realtor Associations, agents, and MLS&#8217; have started implementing changes related to the NAR&#8217;s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. <strong><a href=\"https:\/\/www.houzeo.com\/blog\/nar-settlement\/\" target=\"_blank\" rel=\"noreferrer noopener\">Learn how NAR&#8217;s settlement affects home sellers<\/a>.<\/strong><\/p><\/blockquote><\/figure>\n\n\n\n<p class=\"margin-top-28\">Most people prepare a will that states the distribution of assets and investments among the heirs after their death. Unfortunately, <a href=\"https:\/\/inheritanceadvanced.com\/blog\/probate-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">55%<\/a> of Americans don\u2019t have a will.&nbsp;And when a person doesn\u2019t prepare a will, a probate sale is executed. <\/p>\n\n\n\n<p>The probate sale is a court-ordered auction of assets to pay off debts and distribute assets to heirs. Americans spend <a href=\"https:\/\/inheritanceadvanced.com\/blog\/probate-statistics\/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">$2 billion<\/a> annually on probate. A&nbsp;<a href=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" target=\"_blank\" rel=\"noreferrer noopener\">real estate attorney<\/a>&nbsp;can help a seller navigate the probate process and ensure that their rights are protected. <\/p>\n\n\n\t<div  class=\"hfsWidget \" data-widget-title=\"Find a Real Estate Attorney Now\" data-widget-list-item1=\"1st item\" data-widget-list-item2=\"2nd item\" data-widget-list-item3=\"3rd item\" data-widget-type=\"vendor\" data-widget-vendor-type=\"real_estate_attorney\" data-widget-state=\"us\" data-widget-city=\"\" data-widget-redirect-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" data-widget-redirect-text=\"Search real estate attorneys in US\" data-widget-button-url=\"https:\/\/www.houzeo.com\/pros\/real-estate-attorneys-near-me\" data-widget-button-text=\"Real Estate Attorney Near Me\" data-widget-min-price=\"0\" data-widget-max-price=\"0\" data-widget-min-area=\"0\" data-widget-max-area=\"0\" data-widget-sidebar=\"false\">\n       \n    <\/div>\n\t<script>\n    document.addEventListener(\"DOMContentLoaded\", function() {        \n        if (!window.assetsLoaded) {\n            window.assetsLoaded = true;\n            var version = (typeof customData !== 'undefined' && customData.customVersion) ? customData.customVersion : '1.0';\n            loadScript('\/blog\/wp-content\/themes\/houzeo-new-design\/js\/hfs-widget.js?version=' + version);\n            loadCSS('\/blog\/wp-content\/themes\/houzeo-new-design\/css\/hfs-widget.css?version=' + version);\n        }    \n    });\n\t\t\n\t<\/script>\n\t\n\n\n\n<p>With the right guidance, this process can be streamlined. Companies like Houzeo provide you with a real estate attorney and an agent to make the process hassle-free.<gwmw style=\"display:none;\"><\/gwmw><\/p>\n\n\n\t<div style=\"display: block ;\" class=\"home-page-quick-listing-wrapper  content-ql-new-ui \" main-title=\"Streamline Your Probate Process With Houzeo \ud83c\udfe0\" list-title=\"\" list-item-1=\"\" list-item-2=\"\" list-item-3=\"\" ql-button=\"\" minimize=\"true\" sidebar=\"\" contact-title=\"\" contact-content=\"\" siteurl_qlb=\"https:\/\/www.houzeo.com\" cash-ql=\"false\"><\/div>\n\t<script>\t\t\n\n\t\tdocument.addEventListener(\"DOMContentLoaded\", function () {\n\t\t\tconst isMobile = window.screen.width <= 768;\n\n\t\t\t\/\/ Global flags to prevent multiple loads\n\t\t\twindow.quickListingCssLoaded = window.quickListingCssLoaded || false;\n\t\t\twindow.quickListingJsLoaded = window.quickListingJsLoaded || false;\n\n\t\t\tconst cssURL = 'https:\/\/www.houzeo.com\/css\/quick-listing-block-v3.css?v=9.8';\n\t\t\tconst jsURL  = 'https:\/\/www.houzeo.com\/js\/quick-listing-block-v3.js?v=9.8';\n\n\t\t\t\/\/ \u2705 Load CSS immediately on mobile only\n\t\t\tif (isMobile && !window.quickListingCssLoaded) {\n\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\tloadCSS(cssURL);\n\t\t\t}\n\n\t\t\t\/\/ \u2705 Define JS loader (and CSS for desktop)\n\t\t\twindow.quickListingJsLoadfn = function () {\n\t\t\t\tif (!window.quickListingJsLoaded) {\n\t\t\t\t\twindow.quickListingJsLoaded = true;\n\n\t\t\t\t\t\/\/ On desktop: load CSS here (lazy), since it wasn't loaded initially\n\t\t\t\t\tif (!isMobile && !window.quickListingCssLoaded) {\n\t\t\t\t\t\twindow.quickListingCssLoaded = true;\n\t\t\t\t\t\tloadCSS(cssURL);\n\t\t\t\t\t}\n\n\t\t\t\t\tloadScript(jsURL);\n\n\t\t\t\t\t\/\/ Remove listener after load\n\t\t\t\t\tdocument.removeEventListener(isMobile ? 'touchstart' : 'mousemove', window.quickListingJsLoadfn);\n\t\t\t\t}\n\t\t\t};\n\n\t\t\t\/\/ \u2705 Add the correct event listener\n\t\t\tconst quickListingEvents = isMobile ? ['touchstart'] : ['mousemove', 'scroll'];\n\n\t\t\tquickListingEvents.forEach((eventName) => {\n\t\t\t\tdocument.addEventListener(eventName, window.quickListingJsLoadfn, {\n\t\t\t\t\tpassive: true,\n\t\t\t\t\tonce: true,\n\t\t\t\t});\n\t\t\t});\n\t\t\t\n\n\t\t\t\/\/ \u2705 Helpers\n\t\t\tfunction loadCSS(href) {\n\t\t\t\tconst link = document.createElement('link');\n\t\t\t\tlink.rel = 'stylesheet';\n\t\t\t\tlink.href = href;\n\t\t\t\tdocument.head.appendChild(link);\n\t\t\t}\n\n\t\t\tfunction loadScript(src) {\n\t\t\t\tconst script = document.createElement('script');\n\t\t\t\tscript.src = src;\n\t\t\t\tscript.async = true;\n\t\t\t\tdocument.head.appendChild(script);\n\t\t\t}\n\t\t});\n\t<\/script>\n\t\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"what-is-a-probate-listing\"><strong>What Is a Probate Sale?<\/strong><\/h2>\n\n\n\n<p>A probate sale is the court-managed process of selling a deceased person&#8217;s property when there is no will. The probate court supervises the sale and approves all transactions of the decedent&#8217;s properties.<\/p>\n\n\n\n<p>There are guidelines to carry out probate sales in real estate. The guidelines involve legal requirements, maintaining transparency, and seeking fair negotiations in the probate sale process.<\/p>\n\n\n\n<p>At the end of the sale, the court will first pay off the decedent\u2019s debts and taxes. Then, the court will distribute the remaining money evenly amongst the legal heirs.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"How-a-Probate-Sale-Works?\"><strong>Seller&#8217;s Guide: How to Sell a Probate House?<\/strong><\/h2>\n\n\n\n<p>Here are 4 easy steps to understand how a probate sale works for a seller:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Petition the Probate Court:<\/strong> The first step is to file a petition with the probate court in the county where the deceased person lived. The petition will request the court to appoint an executor or personal representative to manage the estate.<\/li><li><strong>Obtain Court Approval to Sell the Property:<\/strong> The <a href=\"https:\/\/www.houzeo.com\/blog\/executor-of-estate\/\" target=\"_blank\" rel=\"noreferrer noopener\">executor<\/a> or personal representative must obtain court approval to sell the property. This may involve a home appraisal and a selling plan.<\/li><li><strong>Market And Sell the Property:<\/strong> The executor will then work with a real estate agent to <a href=\"https:\/\/www.houzeo.com\/blog\/creative-ways-to-market-a-house\/\" target=\"_blank\" rel=\"noreferrer noopener\">market the house<\/a> and sell it. The sellers will list the property for sale, and interested buyers can submit their offers.<\/li><li><strong>Close the Sale And Distribute the Proceeds:<\/strong> Once the property is sold, the executor will close the sale. They will also distribute the proceeds to the beneficiaries of the estate.<\/li><\/ol>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Buyer's-Guide:-How-to-Buy-a-Probate-House?\"><strong>Buyer&#8217;s Guide: How to Buy a Probate House?<\/strong><\/h2>\n\n\n\n<p>The following are the steps to understand how a probate sale works for a buyer:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li><strong>Search for a Probate Property:<\/strong> You can look for properties online or consult a real estate agent who specializes in probate properties.<\/li><li><strong>Examine the House:<\/strong> Get a <a href=\"https:\/\/www.houzeo.com\/blog\/home-inspections\/\" target=\"_blank\" rel=\"noreferrer noopener\">house inspection<\/a> to inspect the overall condition of the house. The <a href=\"https:\/\/www.houzeo.com\/blog\/home-inspectors\/\" target=\"_blank\" rel=\"noreferrer noopener\">house inspector<\/a> will create an inspection report summarizing the observations that will help you decide whether to purchase the home or not.<\/li><li><strong>Compare Property Prices:<\/strong> Check the current prices in the neighborhood. Ensure you are paying a fair price for the property.  <\/li><li><strong>Make an Offer:<\/strong> Make a final offer on the property. The higher the bid, the more likely the court will accept the offer.<\/li><li><strong>Make a 10% Deposit:<\/strong> It is mandatory to make a deposit of 10% of the home value as a cashier&#8217;s check.<\/li><\/ol>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Probate-Sales-v\/s-Regular-Sales\"><strong>Probate Sales vs Regular Sales<\/strong><\/h2>\n\n\n\n<p>Probate sales involve court-supervised transactions of a deceased person&#8217;s assets, while regular sales are property transactions. Here are some more differences you must be aware of.<\/p>\n\n\n<div id=\"footable_parent_433321\"\n         class=\" footable_parent ninja_table_wrapper loading_ninja_table wp_table_data_press_parent semantic_ui \">\n                <table data-ninja_table_instance=\"ninja_table_instance_0\" data-footable_id=\"433321\" data-filter-delay=\"1000\" aria-label=\"Probate Sales v\/s Regular Sales\"            id=\"footable_433321\"\n           data-unique_identifier=\"ninja_table_unique_id_2283276360_433321\"\n           class=\" foo-table ninja_footable foo_table_433321 ninja_table_unique_id_2283276360_433321 ui table  nt_type_legacy_table selectable striped vertical_centered  footable-paging-right ninja_table_search_disabled ninja_table_pro\">\n                <colgroup>\n                            <col class=\"ninja_column_0 \">\n                            <col class=\"ninja_column_1 \">\n                            <col class=\"ninja_column_2 \">\n                    <\/colgroup>\n        <thead>\n<tr class=\"footable-header\">\n                                                        <th scope=\"col\"  class=\"ninja_column_0 ninja_clmn_nm_selling_price \">Features<\/th><th scope=\"col\"  class=\"ninja_column_1 ninja_clmn_nm_probate_sales \">Probate Sales<\/th><th scope=\"col\"  class=\"ninja_column_2 ninja_clmn_nm_regular_sales \">Regular Sales<\/th><\/tr>\n<\/thead>\n<tbody>\n\n        <tr data-row_id=\"15422\" class=\"ninja_table_row_0 nt_row_id_15422\">\n            <td><B>Oversight<\/B><\/td><td>Court-supervised<\/td><td>No court oversight<\/td>        <\/tr>\n            <tr data-row_id=\"15423\" class=\"ninja_table_row_1 nt_row_id_15423\">\n            <td><B>Timeline<\/B><\/td><td>Typically longer (6-12 months)<\/td><td>Typically shorter (2-3 months)<\/td>        <\/tr>\n            <tr data-row_id=\"15424\" class=\"ninja_table_row_2 nt_row_id_15424\">\n            <td><B>Property Condition<\/B><\/td><td>Sold \"as-is\"<\/td><td>Buyers can negotiate repairs<\/td>        <\/tr>\n            <tr data-row_id=\"15425\" class=\"ninja_table_row_3 nt_row_id_15425\">\n            <td><b>Buyer Contingencies<\/b><\/td><td>Not allowed<\/td><td>Allowed<\/td>        <\/tr>\n            <tr data-row_id=\"15426\" class=\"ninja_table_row_4 nt_row_id_15426\">\n            <td><b>Sale price<\/b><\/td><td>Must be at least 90% of appraised value<\/td><td>No minimum sale price<\/td>        <\/tr>\n            <tr data-row_id=\"15427\" class=\"ninja_table_row_5 nt_row_id_15427\">\n            <td><b>Marketing<\/b><\/td><td>May be more difficult due to as-is condition<\/td><td>Typically easier<\/td>        <\/tr>\n            <tr data-row_id=\"15428\" class=\"ninja_table_row_6 nt_row_id_15428\">\n            <td><b>Buyers<\/b><\/td><td>May attract fewer buyers<\/td><td>May attract more buyers<\/td>        <\/tr>\n    <\/tbody><!--ninja_tobody_rendering_done-->\n    <\/table>\n    \n    \n    \n<\/div>\n\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"pros-and-cons\"><strong>Pros &amp; Cons of Probate Sale<\/strong><\/h2>\n\n\n\n<p>Here are the pros and cons of a probate sale:<\/p>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"pros\">\u2705 <strong>Pros<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong><strong>Reduced Price<\/strong>:<\/strong> Probate properties are sold below market value because they are sold in &#8220;<a href=\"https:\/\/www.houzeo.com\/blog\/selling-a-house-as-is-in-texas\/\" target=\"_blank\" rel=\"noreferrer noopener\">as-is<\/a>&#8221; condition. This can be attractive to buyers who are willing to take on some risk to get a good deal.<\/li><li><strong>Transparency:<\/strong> Throughout the transaction, both buyers and sellers are entitled to precise and clear information. The court protects the executor and ensures a fair sale of the estate assets.<\/li><\/ul>\n\n\n\n<h3 class=\"margin-top-15 wp-block-heading\" id=\"cons\">\u274c <strong>Cons<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Limited Control:<\/strong> You will have less control over the sale process as the executor will be responsible for selling the property. This means that you may not be able to negotiate the terms of the sale.<\/li><li><strong>Lengthy Sales Process:<\/strong> The overall home-selling process of probate properties can take up to a year or longer.<\/li><li><strong>Potential for Delays:<\/strong> Probate sales can be delayed if there are any disputes among the heirs or if there are any complications with the estate.<\/li><\/ul>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Bottom-Line\"><strong>Bottom Line<\/strong><\/h2>\n\n\n\n<p>Probate sales benefit both sellers and buyers. For sellers, these sales facilitate the settlement of debts and expenses within the deceased&#8217;s estate. Buyers can seize opportunities to buy property at a lower price.<\/p>\n\n\n\n<p>Probate sales offer the chance to acquire property at below market value, but require patience and understanding. Seeking legal advice and understanding the process thoroughly is advisable for all involved parties.<\/p>\n\n\n\n<h2 class=\"margin-top-28 wp-block-heading\" id=\"Frequently-Asked-Questions-(FAQs)\"><strong>Frequently Asked Questions<\/strong><\/h2>\n\n\n\t\t<div class=\"wp-faq-schema-wrap wp-faq-schema-accordion\">\n\t\t\t\t\t\t<div class=\"wp-faq-schema-items\">\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat happens when a house goes to probate?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>When a house goes to probate, the court supervises the transfer of ownership of the property to the rightful beneficiaries. The court also facilitates its sale to distribute the proceeds among the heirs.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tHow does probate affect a house sale?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Probate can affect a house sale due to <a href=\"#cons\">legal complexities<\/a>, potential delays, and the need for court approval, all of which can impact the sale process and its outcome.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<p class=\"ui-accordion-header\">\n\t\t\t\t\t\tWhat are the benefits of probate sale?\t\t\t\t\t\t<span class=\"ui-accordion-header-icon ui-icon ui-icon-triangle-1-s\"><\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\t<div class=\"ui-accordion-content\">\n\t\t\t\t\t\t<p>Probate sales helps sellers in settling estate matters while buyers the opportunity to buy a house at a reduced price . However, you should look for <a href=\"#pros-and-cons\">pros and cons<\/a> before proceeding.<\/p>\n\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\n","protected":false},"excerpt":{"rendered":"<div class=\"new-excerpt\"><p class=\"small-desc\">If a person dies without a will, a probate sale is executed. Read our blog to understand everything about probate...<\/p><\/div><div class=\"reading_date\"><span class=\"readtime\">5 mins read<\/span><span class=\"date\">Aug 09, 2024<\/span><\/div>","protected":false},"author":102,"featured_media":430427,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[46226],"tags":[23632,23631],"class_list":["post-317166","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-seller","tag-what-is-a-probate-in-real-estate","tag-what-is-probate-sale"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What is a Probate Sale in Real Estate? | Houzeo Blog<\/title>\n<meta name=\"description\" content=\"A probate sale occurs when someone dies without a will. To understand the legal proceedings and how a probate sale works, read our blog now!\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.houzeo.com\/blog\/what-is-a-probate-sale\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is a Probate Sale in Real Estate? | Houzeo Blog\" \/>\n<meta property=\"og:description\" content=\"A probate sale occurs when someone dies without a will. 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