What You Should Know About Dealing With Probate Real Estate in Northwest Florida

When dealing with a probate property in Northwest Florida, you may have many questions you would like to have answered. Below, we offer some information about probate properties as well as ways to handle them.

What Is Probate?

Probate is the legal process that occurs after a homeowner’s death when the property was not placed in a trust or jointly owned with full rights of survivorship. Typically, if the property must go through probate, it will need to be sold so that the proceeds can be distributed among the beneficiaries, especially if the will doesn’t specify who should receive the property. The first step is to identify the jurisdiction where probate must take place, typically the county where the property is located. Many states require probate to be handled in the county where the real estate is situated. Next, you’ll need to hire an attorney to review the will and prepare the necessary legal documents. These documents are then submitted to the court, where a judge will determine the rightful owner of the property, usually following the wishes outlined in the will. It’s rare for the court to override the will’s instructions.

Who Pays For Probate?

The costs associated with probate can be paid out of pocket or deducted from the proceeds at closing. The executor of the estate is responsible for determining the property’s listing price, negotiating offers, and finalizing the sale agreement. The probate attorney will then send their invoice to the title company managing the real estate transaction. Typically, these probate fees are subtracted from the property’s sale proceeds. The fees can range from a few hundred to several thousand dollars, depending on factors such as the state’s probate laws and the value of the property. In addition, any outstanding debts or taxes related to the property must be settled before the remaining proceeds are distributed to the beneficiaries. Understanding the probate costs early on can help ensure a smoother sale process and avoid any financial surprises during closing.

Can I List Probate Real Estate?

You cannot list or sell the property until probate is finalized or without court approval. To list the property for sale, you must first petition the court for permission. Once the court approves and the property is listed, you can accept offers and enter into a contract. However, the closing will not take place until the probate process is complete. When the probate case is filed, the title company will be notified of who is legally authorized to sell the property. This ensures that all legal requirements are met before the property is transferred to a new owner. Keep in mind that this process can take time, so it’s important to plan accordingly for potential delays in closing.

How Much Should I Sell For?

To determine the appropriate asking price for probate real estate, it’s essential to have the property professionally appraised. This not only provides an accurate market value but also helps identify any structural issues that need to be disclosed in the sale contract. When reviewing offers, it’s important to factor in the probate costs. If you own a vacant lot, ensure that the offer amount will cover these expenses. In most cases, houses and other types of real estate will sell for more than the cost of completing probate, providing some financial buffer. If you’re looking to sell the probate property quickly, consider pricing it slightly below market comparables or the appraisal value. This strategy can generate more buyer interest and increase the likelihood of receiving offers promptly. Additionally, pricing competitively can help expedite the sale process and move the property off the market more quickly.

I’ve Accepted An Offer, Now What?

When you have received an acceptable offer, or you have negotiated a price you are willing to sell for, execute the contract. If you have any questions about the contract, reach out to a real estate lawyer to help you understand all the terms, conditions, and riders necessary to complete the deal. When the title company is chosen, make sure you provide the probate lawyers invoice to them so they can take care of the bill out of your proceeds. 

Contact Gulf Coast Home Buyers today at (850) 972-0550 to discuss in greater detail what you should know about dealing with probate real estate in Northwest Florida.

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