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

2. Take control of the probate timeline

Once you file that document, the probate timeline kicks into gear, whether you’re ready or not.

With all the rules, regulations, and deadlines involved in the probate process, many executors feel rushed and overwhelmed, especially considering the limited time to gather all the necessary documents, forms, and paperwork. Luckily, that timeline isn’t always set in stone.

“There can be rules or guidelines for when a will is supposed to be filed in the probate court, but most people don’t have a will, so that’s often irrelevant,” explains Sacramento-based probate attorney John Palley, who has been awarded Martindale-Hubbell’s prestigious “AV” peer review rating.

“Typically, the clients are in charge of when we file for probate, so we don’t have to start it today.”

While you can give yourself a little breathing room of a few weeks before filing the will (and even more if there’s no will to file), you don’t want to wait too long, or you’ll unnecessarily delay the lengthy, often year-long timeline.

“Filing the will with the court triggers many other things during the probate process, including when they’ll be able to sell the house, access the bank accounts, sell the car, and do all those types of things,” Palley says.

“So, the sooner you start, the sooner you’re in control to finish the process and move on with life.”

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

Although failing to complete every step of the probate process within the required timeline can land you in legal hot water, 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 of 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 hire an agent officially 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. In this process, the probate court gives other interested buyers a chance to submit a higher offer than the original accepted bid before the sale is finalized.

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 handle the complex issues that can arise during a probate sale.

6. Aim to sell the house as soon as possible in the probate process

Keeping track of everything during probate can be a lot, but one thing you’ll want to deal with sooner rather than later is selling any assets that are 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.

Court-appointed executors who weren’t close to the deceased can sometimes run into challenges when it comes to clearing out the house. An outside executor may be brought in when multiple heirs can’t agree on how to handle the estate, and disagreements over belongings can sometimes put the home sale on hold. In that situation, the sale may have to wait until everyone agrees on what should happen to the items inside.

If arguments over belongings are slowing things down, you may be able to take disputed heirlooms out of the house and store them somewhere safe until the heirs reach an agreement. This can help keep the home sale moving forward, even if some of the contents are still being sorted out.

7. Use estate assets to improve the property before listing

Probate properties can sometimes take longer to sell than traditional home sales. There are a few reasons for this, but the common one is that the executor is trying to sell the property as-is, meaning they’re putting it on the market without making major repairs or updates first. This can limit the pool of interested buyers, especially if the home needs a lot of work.

“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. Most buyers prefer move-in-ready homes so they can skip major renovations and avoid dealing with plumbing, electrical, or other issues.

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.

8. Market the inherited home effectively

Once the executor has the green light to sell, it’s time to get the property on the market. Start with good photos, an honest, yet creative listing description, and a competitive price based on the home’s condition and local market. For probate homes, marketing through the multiple listing service (MLS), real estate websites, social media, and investor networks can help get the property in front of more potential buyers.

If the house needs repairs, be upfront about its condition so buyers know what they’re getting into. Provide any disclosures required by state law, along with any estate-specific information buyers should know. Being transparent from the start can help prevent surprises that could derail the sale later. Once the listing is live, it’s mostly a matter of keeping an eye on showings and waiting for the offers to roll in.

9. Negotiate for the best deal for the estate

When offers start coming in, don’t automatically jump at the highest number. Look at the full picture, including the offer price, contingencies, financing, closing timeline, and how each deal fits the estate’s needs. The executor can negotiate with buyers and accept the offer that makes the most sense, but probate rules may add another step before the deal is final.

Depending on the state and type of probate proceeding, the accepted offer may need to go before the court for confirmation. In a court-supervised sale, other interested buyers may also have a chance to make a higher offer through an overbid process.

Basically, the court may allow someone else to beat the original offer before approving the sale, so that first accepted offer isn’t always the final word. Once the court gives its approval, when required, the executor can move ahead toward closing.

10. Seal the deal and settle the estate

With the sale approved and everything ready to go, the final step is closing the deal. The executor will typically work with a title company to handle the closing process, prepare the paperwork, and make sure the property can legally transfer to the buyer. You’ll also need to sign the necessary documents in your role as executor, rather than simply signing as the former homeowner.

After the sale closes, the proceeds generally go toward paying the estate’s outstanding debts, taxes, and other approved expenses. The sale may also have capital gains tax implications, although inherited property generally receives a step-up in basis to its fair market value at the time of the owner’s death.

This means the taxable gain is typically based on the difference between that stepped-up value and the eventual sale price, rather than the property’s original purchase price. Because tax rules can vary based on the estate and circumstances, it’s a good idea to have a tax professional determine whether any capital gains tax is actually owed.

Once those obligations are taken care of, the remaining funds can be distributed to the beneficiaries according to the will or applicable probate rules.

Keep careful records throughout this process, since you may need to show how the estate’s money was handled. It may not be the most exciting paperwork marathon, but getting this final step right helps bring the estate settlement to a clean finish.

»Learn more: Selling a probate property comes with plenty of expenses, so it’s worth knowing what the estate could actually take home from the sale. Try our Net Proceeds Calculator to get a quick estimate of your potential proceeds after selling costs.

What if I want to sell my inherited property fast?

If you’re hoping to sell an inherited property fast, you may not want to wait months for traditional showings, negotiations, and a lengthy closing process. A cash sale can be a quicker option, especially if the home needs repairs or you’d rather avoid fixing it up before selling. Just keep in mind that probate requirements still apply, so you’ll need to make sure you have the proper authority to sell and follow any court procedures.

HomeLight’s Simple Sale offers another way to sell by matching you with cash buyers who can make offers on eligible properties. It can help you skip the traditional listing process and sell the home without making repairs or dealing with open houses. For an inherited property, that can mean a simpler path to turning the house into cash while you work through the rest of the estate.

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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