Embarking on the journey of selling a probate home can feel daunting, often entailing legal complexities and emotional considerations. At Team Carver, we understand the unique challenges involved in probate sales and are here to guide you with compassion and expertise every step of the way. Our specialized knowledge and proven strategies empower you to navigate this process with confidence, ensuring a seamless transition while maximizing the value of your probate property. Explore how our dedicated team can assist you in unlocking the full potential of your probate listing, delivering peace of mind and maximizing the value of your property while honoring your loved one’s legacy.
What is Probate?
Probate is the legal process that you must follow to transfer or inherit property from someone who has passed away. Probate might be required to legally sell their home or pass on other assets to heirs. I meet with clients often who have a family member or friend that has passed away and they want to sell the home. If the title to the home is still in the deceased individual’s name, I will need something to show me who has the legal authority to sign the listing paperwork and sell the home. I met with someone recently and her father has passed away. She had been living in the home for the last year and wanted to sell it. Her dad’s name was the only one on title. He did not have a will and although she was the one living in the home, she has two sisters. Probate was needed for the court to determine who can legally sell the home and sign the listing paperwork. In that case, the probate court appointed her as the Administrator of the estate so she could legally list the home and it was determined that the estate assets would be divided among the 3 sisters. The Probate appoints an Administrator for the estate who has the legal ability to sign the listing paperwork and sell the home.
The Probate Process in Las Vegas
Losing a loved one can be a difficult time and many times the family doesn’t know where to start. You will need an original death certificate for the attorney and another one to provide to the title company when selling the home. Make sure you get multiple originals. If there is a Will it makes it easier but does not avoid probate. A common misconception is that probate applies only to those who do not have a will. In Nevada even if you have a will probate will still be necessary to sell the home.
Probate is time consuming and costly. It can easily to 6 – 8 months for a standard probate from start to finish. If there are complications it could be much longer. I have clients right now that an Administrator was appointed and then he passed away and a new administrator was appointed, and it was over a year before they were able to list the home for sale.
The Realtor’s Role in Probate Sales
Choosing a real estate agent that is experienced in Probate and has the tools to help with the sale can make all of the difference. Many times, the estate will need help making arrangements for the personal property in the home. I have many clients who need help with furniture, clothes and other personal items. Since Covid there are not a lot of great options for personal property. Over the last couple of years several of the consignment companies closed. Those that are still open are packed with items and very picky on what they will accept. There are several estate sale companies, and this can be a good option to sell a house full of items. There are also many online auction companies that will either do a sale at the property or purchase items that they will resale online. The administrator of the estate may live out of state. So they may rely on an agent to help make arrangements for items needed to prepare the home to list such as cleaning, painting or additional trash haul away.
Probate sales are more complicated than the typical real estate sale. It is important that you use an agent who like myself is experienced with these types of transactions and specializes in probate sales. As a Certified Probate Specialist, I have the experience, knowledge and tools to help clients with probate sales.
Having handled these types of transaction over the years, I understand the importance of communicating with the Sellers of probate properties and helping walk buyers through the process. I am happy to work with you also!
Avoiding Probate
How can you avoid the cost and time involved with Probate? Having a Trust is one of the best ways to make your wishes clear and avoid probate for your home and other assets such as bank account and investments. Once you create the trust, you are the trustee of your trust and you name someone to take over as Successor trustee upon your death. Then—and this is crucial—you must transfer ownership into trust. At your death, your successor trustee will be able to list and sell the home right away without probate court proceedings. I have had a client who had the trust completed and the title was transferred into the trust. They refinanced and the lender required the title to be removed from the trust. Unfortunately, they did not transfer back into the trust and probate was required.
Another Option is a Deed Upon Death. I generally do not recommend this option. I have had clients who had completed a Deed Upon Death. In this situation the deed is recorded on title and only becomes effective after the individual owner’s death. It is my understanding this is legal but in Nevada most title companies will require time frames before allowing the home to close escrow. They want to make sure there has been time from the death for creditors to file claims. This could be an option to avoid probate on the house but probate may be needed for other assets and there could be delays or problems still with selling. A trust is the easiest way to transfer assets upon your death. When I meet with clients who have a trust, I can list the home right away with the signatures from the successor trustee. I only need an original death certificate and a copy of the Certificate of the trust showing who the successor trustees are for the home. A trust can protect your assets from creditors also. I recommend talking to an attorney on what is best for your situation.
Selling a Probate Property
Selling probate property requires additional time frames. Once the probate court has appointed an administrator the paperwork can be signed, and the home listed for sale with a real estate agent and the administrator can accept offers. An accepted offer may require additional court approval. This can add additional time and offers will need to be made as contingent upon Probate Court approval.
Nevada passed the Independent Administrator Act in 2011. This act helps expediate the time frames to appoint a Personal Representative. Additional second court approval is not needed for the sale of the property. This is a big deal when selling the home as buyers are more likely to write offers and are not scared off by a required court approval of the sale. This helps expediate time frames and reduce costs.
In these situations, it is important to work with an attorney who understands all the options for the estate involving probate.
If you own a home or have assets that you want to transfer smoothly upon your death, I recommend meeting with an attorney to discuss options such as a Living trust to make it easier for your loved ones to carry your wishes when you are not around.
Things To Know When Buying A PROBATE Property
Have you ever considered buying a probate property, or does the idea seem daunting to you? In this video you will learn all the things to know when buying a probate property. I have experience in Probate sales and have obtained the Probate Specialist Certification from the Residential Real Estate Council. I’m here to offer advice, insights, and updates to help you make informed decisions, when it comes to purchasing real estate in Las Vegas.
Understanding Probate Property
• Probate approval is not needed if the home title is held in a Trust. If title is not in a trust, the court may need to appoint an administrator for the estate to legally sell the home.
The Pros and Cons
• One of the benefits of purchasing a probate property is that there is likely less demand from other buyers that don’t understand the process. This could bring a reduced price for the you.
• Some of cons is that Probate Court approval may be required for the sale, the approval may be a lengthy process and the Seller may be exempt from competing disclosures about the home.
The Legal Process
• Once the probate court has appointed an administrator the paperwork can be signed and the home listed for sale with a real estate agent and the administrator can accept offers. Please keep in mind that the attorney and heirs may want to review offers before acceptance. Response times on offers and during the transaction can take longer. Plan on at least 24 hours to a week for a response!
• Accepted offer will likely require Court approval. At the court hearing, the court will ask for open bids. Probate court is held on Friday mornings and there are generally investors at the hearing who will bid on these properties. It is recommended that you as the buyer be present to bid as well!
Financing and Cash Requirements
• You can write an offer contingent upon a home inspection, financing and appraisal. Please keep in mind that everything is still negotiable so the Seller may counter terms.
Assessing Property Value
• When determining value on these types of homes you will want to first take into consideration what market conditions are for the area. How many months of inventory are there? Once you have a general idea of value for the home then take into consideration the additional time, risk and unknowns with condition.
Working with Real Estate Professionals
• Probate sales are more complicated than the typical real estate sale. It is important that you use an agent who like myself is experienced with these types of transactions and specializes in probate sales.
• If you are involved in a probate sale, it is best to find a probate real estate agent or Realtor who fully understands the probate home sale process. Having handled these types of transaction over the years, I understand the importance of communicating with the Sellers of probate properties and helping walk buyers through the process. I am happy to work with you also!
Potential Risks and How to Mitigate Them
• The administrator of the estate may never have lived in the home and may not be aware of the history or condition. Also, the administrator may be exempt from completion of disclosures. I have dealt with Administrators that have never seen the home.
• I recommend making the inspection contingency begin upon acceptance of the offer. Completing inspections right away will allow you to negotiate a credit or repairs prior to court approval.
• Write all other contingencies such as financing and appraisal to begin upon court approval. This way you are not paying for the appraisal or other items prior to approval.
Should You Buy a Probate Property In Henderson NV and How it works
Con #1
• One of the first things to keep in mind is time frames. Buying a home in probate typically takes longer than purchasing one that is not. This is because the court must approve the sale. Time frames to get on the court calendar can range from 3 weeks to 4 months. During covid the courts were backed up and once an offer was accepted it would take months to obtain approval.
Con #2
• The Administrator of the Estate may be exempt from completing disclosures. In Nevada, the Nevada Revised Statues provides an exception from completing the Seller’s Real Property Disclosure for an administrator who takes temporary control of title to the property solely to facilitate the sale of the property on behalf of a person who is deceased. It is likely that the Administrator is not aware of defeats or the history of the home. Many times, they have never lived in the home. Sometimes, the home is sold AS IS. It is always a good idea to have a home inspection and make sure you are aware of any repairs that will be needed.
Con #3
• Another thing to keep in mind that isn’t discussed often, is that the deceased relative may have passed away in the property. I have had a handful of listings with the deceased passed away and the heirs did not find out for months. Hazmat was required for the home. In Nevada, the Seller is not required to disclose if someone passed away in the home unless the home caused the death. I recommend that buyers ask in writing if someone passed away in the property.
Pro #1
• So why would a buyer purchase a Probate property with these cons? Well, if you are looking to score a home for less than you would otherwise, purchasing a house at a reduced rate is common in probate homes. The big Pro for probate homes is the lower purchase price. As the homes require court approval some buyers will be scared off and not willing to deal with the extended time frames or risk. This brings less demand and competition for these types of properties. Also, the heirs maybe be motivated to see the home sell quickly and accept a lower price. Usually, they are not willing to do many improvements to the home so these properties can be purchased by investors who can remodel and sell at for profit.
Probate Buying Process Overview
• A probate home is a property that is part of an estate, typically one whose owner has died without leaving a will. Even if there is a will, in Nevada probate may be required to sell the home. The home then needs to go through a legal process known as probate. During this process, the court determines who should inherit the property and how it should be split up.
• A probate sale starts with the Court appointing an estate representative. Once the probate court has appointed an administrator the paperwork can be signed and the home listed for sale and the administrator can accept offers. Since they manage the estate, they’ll have to petition the court to seek permission to sell the probate property. Court approval may be required to approve the accepted offer, At the court hearing, the court will ask for open bids. Probate court is held on Friday mornings and there are generally investors at the hearing who will bid on these properties. It is recommended that you as the buyer be present to bid as well!
• The executor of a will is the person who is the personal representative responsible for carrying out the instructions in a person’s will. In Nevada, there are two types of executors:
- An executor is generally appointed by the will and is someone named within the will.
- An administrator is appointed by the probate court and must be a close relative or someone nominated to serve as guardian if there are minor children.
Tips for Potential Probate Property Buyers
• I recommend making the inspection contingency begin upon acceptance of the offer. Completing inspections right away will allow you to negotiate a credit or repairs prior to court approval.
• Write all other contingencies such as financing and appraisal to begin upon court approval. This way you are not paying for the appraisal or other items prior to approval.
I inherited a property! What do I do now? This is a common question.
Advice or Step 1: Understanding Your Situation
• After someone you love has passed away, selling their house can be very difficult. When I meet with families during this time, they often have memories of the home. I ask a lot of questions so that I understand what is important to the client. Every situation is different. It is important to talk with trusted professionals early on so you can make an informed decision on the best steps for your situation. I recommend talking to an accountant and an attorney. I have clients that I helped several months ago that spent months going through the personal property and getting the home ready to sell then they contacted me. Once we got together, I saw that the title was held in the parents who were deceased, so probate was needed. This is something that could have started months ago and took additional time before we were able to list the home for sale.
Advice or Step 2: Immediate Steps to Take
• Sort through the personal paperwork and other items in the home. Don’t assume that all of the important documents are in one area. You normally find important documents in an office or safe but don’t assume that is the only place. Sometimes they are in multiple areas. I have a client recently that the kids had gone through the personal paperwork and thought they had everything. We had an estate sale company come out and we were looking through the kitchen. We found checkbooks, credit cards and a key to a safe deposit box in the kitchen drawer. I don’t mean like a junk drawer either. It seriously was the third drawer down in the row by the stove! No one thought to look there!
• Search for estate plan documents like a trust or a will. Gather any life insurance documents, bank statements, retirement accounts information. Documents relating to the house such as the mortgage. Make sure you are talking to an attorney before you contact the lender, bank or insurance company. If you contact the bank before consulting an attorney, you risk the bank freezing the account, which could cause problems with any direct deposits or automatic payments for the house.
• One thing you don’t need is the deed to the home. I have clients all the time bring me a copy of the documents from the title company from when the home was purchased. The deed is public record, and we will pull the information from the Clark County Recorder’s office.
Advice or Step 3: Legal and Financial Considerations
• If the title of the home is held in a trust, then we can list the home right away. I will just need a copy of the “Certificate of Trust”. This is usually a tab within the trust that is around 2 – 4 pages and shows who the successor trustee is. The title company will need an original death certificate. Finally, one thing that most people don’t know is that you will need either a bank account or investment account that is in the Trust name. The title company will only wire the proceeds into an account in the trust name. It is a pretty simple process if the home is held in a trust.
• If the title is not in a trust, then probate will likely be needed. Many people assume that if there is a Will that Probate is not necessary. Even if there is a will, probate will be required to appoint the executor or personal representative who will administer the estate. I will need this so that I have something showing who has the legal authority to sign the listing paperwork. Probate court approval may also be needed for the sale once we receive an offer.
• You will want to continue payments for the mortgage payments and other expenses for the home. Determine if there is a Reverse Mortgage on the property. With a reverse mortgage loan, there aren’t monthly mortgage payments, however Interest and fees are added to the loan balance each month and every month the balance goes up. In this situation, time is of the essence because the estate liabilities increase every month! If there are not funds available from the estate to pay for these expenses, then sometimes an heir to the estate or the Administrator will pay for some of these items. Keeps receipts and invoices as the estate usually can reimburse these costs.
• You will need to keep the power, water and gas on for the home. The Buyer will need those utilities to complete a home inspection and our standard Purchase Agreement has language in it that the utilities will be on at the home through close of escrow. Of course, everything is negotiable, and you could sell the home AS IS and not have the utilities on. Just keep in mind that you will likely limit the demand to an investor or a buyer who is willing to take the risk of not being able to fully inspect the property. This will likely impact value and you will need to price the home accordingly.
• Another Very important item in Nevada is the Homeowner’s Association. In Nevada, the HOA is a primary lien on title, and they can foreclose on the home. I see homes where the HOA foreclosed on the property and there was no mortgage. I have clients right now that before they contacted me, they had let the water was shut off at the home and the landscaping had died. The HOA was fining them weekly for the violations. They had no idea. The key to dealing with the HOA is communication. You want to make sure you are getting the notifications and staying in touch and keeping the HOA dues current.
Advice or Step 4: To Sell, Rent or Keep?
• I have clients that ask me about Selling vs Renting. If you are considering renting, my advice is to look at your long-term goals. Do you want to own an investment property? If so, then I recommend getting information on what the rental income and expenses will be to see if this property makes sense as a good rental property. This should be something you plan for a longer term, at least 3 to 5 years. Otherwise, it may not be worth it to rent the home for just a year before selling as there is a risk with tenants of loss rental income, eviction costs and possibly property damage.
• Now it is different if you are considering renting now and move into it personally down the road. Every situation is different. There could be tax or legal consequences as well so make sure you are gathering information to make an informed decision.
Advice or Step 5: Preparing the Property to Sell
• Many times, the estate will need help selling or donating the personal property in the home. The administrator of the estate may live out of state and need help with handling the furniture, clothes and other personal items. I recommend including the refrigerator with the sale of the property since it usually matches with the other appliances in the kitchen. For other items, there are several estate sale companies or online auction companies that can be a good option to sell a house full of items or purchase items that they will resale online.
• Sometimes it can be worth it to do some work on the property. If repairs are needed to the roof or other items, the buyer will assume worst case scenario. It could be worth having repairs completed. If I don’t recommend doing full updating or remodeling as these are time consuming and expensive. However, I do recommend painting or replacing the carpet, if worn. These two items can be done quickly and make a big difference in selling them quickly and for more money. I have inexpensive painters and flooring people so I can obtain bids for the estate to consider. I also have terrific cleaners. This is a must. You want a full move-out cleaning with the cabinets cleaned inside and out, windows cleaned, etc.
• If there is a vehicle you may need to have arrangements made to have it towed or stored until probate is finalized and the title can be transferred. I have clients who live in Tennessee and wanted the car. We helped to have the car transported to them earlier this week. I was meeting with the transportation truck at 10 pm to get the vehicle for my clients. There is a lot involved!
• Probate sales are more complicated than the typical real estate sale. It is important that you use an agent who has experience with these types of transactions and specializes in probate sales. This type of sale requires significant soft skills like understanding what is important to the clients and helping through the process. As a Certified Probate Specialist, I have the experience, knowledge and tools to help clients get their home ready to go on the market.
Advice or Step 6: Navigating the Las Vegas Real Estate Market
• Selling probate property requires additional time frames. An accepted offer may require court approval. This can add additional time and offers will need to be made as contingent upon Probate Court approval. This could limit some buyer demand.
• The good news is that you will be selling a home in a Sellers’ market. In Las Vegas, we currently have low inventory. A 6-month supply of inventory or less is considered a Seller’s market. We have around a 3-month supply. That means that if no new homes came on the market, all the homes would be sold in 3 months. I advise my clients to focus on the things that we can control like conditions (making sure the home shows well), marketing (hire an agent like me that has a detailed marketing plan) and finally price.
• Having handled these types of transaction over the years, I understand the importance of providing Sellers of probate properties information and help with all everything related to getting the home sold.
• Compared to working with other types of clients, inherited property sale requires additional skills and tools. However, I find this market incredibly rewarding to be able to truly help my clients during this difficult time by making things as easy as possible. If you find yourself facing the prospect of selling an inherited home, know that you don’t have to navigate this journey alone.
• I hope this information helps you with your inherited home!
