What Is a Probate Sale? – Estate Planning

Ashley Kilroy   Mon, September 27, 2021,

More often than not, people want to leave their assets and property behind to people they care about when they pass. But sometimes individuals don’t make a will or die with debts. In such cases (among others), their property has to pass through a probate court. It’s possible that you may have to act as an executor of an estate holding one of these properties. Or, there may be an option for future homeowners who want to buy lower-priced real estate. Either way, you’ll have to understand the process of a probate sale. Here’s a rundown on how it works.

Working with a financial advisor can help you execute your estate plans as efficiently and correctly as possible.

What Is a Probate Sale?

While many homeowners rely on estate planning to organize their assets, some pass without a will in place. This is also known as dying intestate. Or, they may die with debts in their name. In these cases, the decedent’s property enters a legal process called probate. A court oversees the sale of this property with the goal of selling it for the best price possible.

How Does a Probate Sale Work?

Just as how estate planning and foreclosure procedures vary by state, so does the probate process. Generally, though, the goal is to sell the property for the best price as is. Learning how the process works can help prepare you if you ever find yourself involved in one. It includes a number of steps:

Appointing an Executor of Estate

If the deceased didn’t leave a will, the court appoints an executor of estate. The executor, also called the estate representative, is typically the next of kin or another living relative of the decedent. They help get the decedent’s affairs in order and take care of the home’s sale.

Hire a Qualified Real Estate Agent

The executor of the estate doesn’t conduct the sale alone. He or she hires a real estate agent to support the process. While many real estate agents have enough knowledge for this, it’s recommended that the estate representative choose one with probate experience. That ensures everything moves along according to the proper procedure. A Certified Probate Real Estate Specialist (CPRES) agent would likely be the best choice.

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