After facing the loss of a loved one who didn’t have a will or investments protecting against the process this can be an overwhelming process that can add more stress to an already troubling time. To sell a probate property can mean long drawn out proceedings, especially with larger estates.
It can be costly to go through that adds to the costs of of the funeral, so avoid making the mistake of skipping any of the legal requirements which can further tie up your property for months. You’ll need to be patient as the assets of the deceased are analyzed and the rightful inheritors of the estate are determined. Executors may need to liquidate the real estate, leading to the probate court distributing the funds evenly among those beneficiaries.
If you find yourself in this position, read on for information on how to handle selling a probate property in Connecticut.
Certain aspects of this real estate law are common among all jurisdictions, for a valid sale, you’ll want to ensure you’ve rigorously followed all of the legalities for selling your probate property in Connecticut.
How To Sell a Probate Property in Connecticut
Certified Appraiser
Your first step will be to locate an independent certified appraiser. You can either reach out through phone listings or word of mouth among probate property real estate professionals in Connecticut. You will want a good appraiser that has experience with probate real estate. Many appraisers focus on agent listed properties and don’t understand the impact of their appraisal on the ability to sell a probate property. Probate property has to be approved for sale by the court and an inaccurate appraisal can result in a property that can’t sell in a timely fashion.
Petition
Once you’ve obtained your certified appraisal, you’ll next want to proceed by filing a petition with the court to sell the probate property in Connecticut. While filling out your petition, be certain the information includes any pertinent information about the property along with the method that will be used to complete the sale, be it at an auction, on the open real estate market, or selling it to a real estate investor. Submit your petition along with your certified appraisal. Once you’ve obtained the court’s approval, you may then proceed with the sale.
Different types of sales have their own benefits. An auction ca some times be the faster option but takes a lot of the control of the sale from the executor and pus it in the hands of the courts. It could result in too low of a sale price resulting in nothing left for the Heirs. Selling the property on the MLS will require a realtor that knows probate sales and many buyers do not like buying probate properties because of the lengthy process and the requirement of court approval.
Offer the Property
For sale, with conditions! Now that you can finally take action and sell your probate property in Connecticut, you’ll want to make certain to disclose to your potential buyer that the court’s confirmation of the transaction is required before you can accept, making the offer conditional. Buyers do not like getting blindsided by the court approval condition and don’t understand why the process is so slow. If they are looking to close and move in quickly they might be likely to look elsewhere. Real estate investors like us understand the process and are more willing to work with the conditions of the sale.
Court Confirmation
Commonly, once you’ve petitioned the court for a hearing to confirm your sale, you can expect delays on the court calendars ranging from between 20 to 40 days, from the filing date. At the same time insurance, taxes, mortgage and utilities on the property must be paid. Many executors are uncomfortable with this and a lot of probate properties fall into foreclosure because of lapses in payment.
Deposit
Plan to collect a 10 percent deposit from the buyer at this time, which is based on the purchase price. This drives away your average real estate buyer. Depending on the appraisal of the property this can be a sizable amount that many buyers don’t have available. Most buyers only have about $5000 in liquid cash as an Earnest Money Deposit.
Advertise
Because the ultimate goal of the sale of a probate property in Connecticut is to garner the highest amount possible for the estate, you may have to advertise your court hearing to the general public for a process known as open bidding. This allows any additional interested parties to participate in the purchase of the real estate, aiding in raising the final purchase price.
Court Hearing
Now you’ll need to attend the court hearing and wait until the unconditional bidding has concluded and a cashier’s check is presented for the final figure. Your buyer will be able to participate along with any member of the public who so chooses, bids increase by $500 at a time.
Refunding the Deposit
Should a new buyer overbid your buyer during the court proceedings, be prepared to refund their 10 percent deposit. Otherwise, should your original buyer maintain the highest bid, the funds you previously collected from them would be applied to the purchase.
Closing
Finally, you can close on the contract for your probate property in Connecticut. Be certain that the costs of the property are covered by the financing. You’ll also be responsible for placing the full amount into the estate fund.
We’re here to assist you during this difficult time and make the process easy. Call Next Door Properties today at 860-704-9513 or send us a message to sell a probate property in Connecticut.