Helping people buy and sell homes is usually a joyous endeavor, guiding them through the often difficult and winding process that leads to shaking hands and house keys being handed over. But there are some situations where getting to the closing is much more difficult and emotional. Death can do that, which is why probate properties present unique challenges.
“Families need more specialized guidance when selling an inherited property for a number of reasons,” explains Jeffrey Decatur, with REMAX Capital in upstate New York. “The main reason being that laws regarding probate or inherited sales are more complicated than a typical sale. Not knowing the correct procedure, filing the wrong paper, not understanding the authority or responsibility you have been bestowed (vs. what your sister thinks it is) can cost thousands of dollars and months of extra time.
“For many, there isn’t a lot of money left in the estate to handle the process when it runs smoothly, let alone if there are challenges. Many times all of this extra responsibility falls on one person, which can cause tensions to run higher in families. When decision-making is clouded and lines are drawn, that is when costly mistakes can happen.”
Jenna Yost Hoyas and Kristina Quesada are partners at The Yost Quesada Team at Douglas Elliman Real Estate in San Diego, California. One of their specializations is handling probate properties.
“Selling a probate property is not just another real estate transaction,” says Hoyas. “Families are often navigating grief while simultaneously dealing with court requirements, legal deadlines, tax considerations and multiple heirs who may have different priorities. We understand the emotional and procedural aspects of probate and can prevent costly mistakes, reduce unnecessary conflict and help families move through what is already a difficult chapter with greater confidence.”
Quesada points out that when someone dies, the memories often flood back to family survivors, making the property even more precious than it might have been if sold when the owner was alive. Thus, sensitivity is urgently required of the agent.
“An inherited home often represents decades of family memories, which makes every decision feel more personal,” she says. “Beyond the emotions, there are practical challenges such as determining the home’s value, coordinating with executors and beneficiaries, clearing out belongings, resolving title issues and complying with probate requirements. It requires equal parts compassion, organization and expertise because families are making financial decisions at one of the most emotional times in their lives.”
Sticky situations often arise with a probated sale that agents would never normally encounter, so they must be prepared to have answers in advance to assure clients they know the ins and outs.
“With a probate sale, there are multiple parties involved; the estate attorney, the executor and sometimes family members and friends named in the will,” says Pam Rosser Thistle, with Berkshire Hathaway HomeServices Fox & Roach, Realtors in Philadelphia. “The paperwork guides the process, but the emotions and opinions can be loud. Sometimes, the will is not as family or others expected. It is not unusual for older people to change their will a number of times and not tell everyone.
“I can’t explain it, but there is often a nephew or somewhat distant relative who appears when it’s time to sell. I am given the name and have sometimes had to change the locks a couple of times.”
Probate procedure
Explaining the property-selling probate procedure to clients who probably have not been through it is a crucial aspect of an agent’s job.
“A property typically enters probate because it was owned solely by the deceased and does not have a designated beneficiary, transfer-on-death deed or a living trust,” notes Ashley Reidy Quinn, an agent at Coldwell Banker Warburg, in New York City. “In some cases a simple oversight, such as a deed that was never properly executed or recorded, may also result in a property entering probate. The nuances of these situations are highly detailed and also vary from state to state.
“During probate, the court oversees the legal transfer of title, ensures any outstanding debts and taxes are addressed/paid and ultimately distributes the remaining assets in accordance with the decedent’s will or applicable state law. While the legal process itself may be lengthy and, at times, complex, the emotional aspect is just as significant. This is why having a trusted advisor is so valuable. Beyond guiding clients through the logistical and transactional complexities of probate, a knowledgeable advisor may also provide a steady, calming presence during an incredibly emotional and vulnerable time, which further helps clients make informed decisions.”
As was mentioned previously, the probate process is often complicated by relatives showing up with all kinds of ill-informed opinions, almost always in their favor and usually requiring the agent to play therapist within family squabbles.
“Every beneficiary may have a different financial situation, emotional attachment to the property or opinion of its value,” says Quesada. “One sibling may want to maximize every dollar, while another may prefer a quicker sale to settle the estate. Our role is to bring objective market data, transparent pricing strategies,and clear communication to the table so decisions are based on facts rather than emotion.”
Decatur and Rosser Thistle acknowledge that these types of situations occur more often than not, but they are prepared for them, so as little time is wasted as possible.
“Emotions run high in a typical sale, and in a probate sale they can run even higher even if there is only one person involved,” says Decatur. “Then add in the family. Even with things spelled out and correctly done through the courts and wills, family members are going to disagree. ‘Well, Uncle Jerry thinks the house is worth $500,000, but that is too low, Aunt Margie said.’ It is best in these situations to attempt to pick one spokesperson, or let the courts appoint one. It is also the best practice to stay neutral as the agent and just keep repeating the ultimate goal is to sell the property.”
Rosser Thistle explains that “this is a windfall for many, and they want to make the most of it. There are sometimes many family members splitting the proceeds. I share comps, give a recommendation and help with the preparation of the home. Inevitably, one of the siblings wants to price it for more than it’s worth.
“Also, almost every time it’s the daughter/woman who has cared for the person who has passed. This gender role is still strong. That person usually prepares the house, too. Others who have not been as present are usually the ones criticizing the steps as we go. Sadly, there have been some situations where during a last visit a family member brought a will giving them everything. And if it’s signed and is the last will, that is what is probated.”
Handling legal issues
Because the courts are involved with probate, there is the legal aspect that must be addressed, unlike the run of the mill house sale where just the buyer and seller either agree or disagree.
“Since a deed is a legal document, issues related to its execution, recording or ownership may result in a property becoming subject to probate,” says Quinn. “Additionally, legal questions and challenges may arise throughout the probate process itself. This further emphasizes the importance of having a trusted legal advisor who may provide guidance and help oversee the complexities that may arise throughout the process.”
Hoyas adds that every probate case is unique, but common legal hurdles include confirming the executor’s authority to sell, resolving title issues or liens, identifying all heirs and beneficiaries, meeting court approval requirements when necessary and ensuring the sale complies with state probate laws.
“The earlier these issues are identified, the smoother the transaction tends to be, which is why coordination between the real estate team, attorney and estate representatives is so important,” she says.
Probate laws differ from state to state, and even county to county, so that’s another aspect that agents must be well versed in, especially if they conduct business in more than one state, which some do.
“California has one of the more nuanced probate systems in the country,” states Quesada. “Depending on how the property is titled and the size of the estate, some homes may qualify for simplified procedures, while others require formal court supervision. California also has unique rules surrounding independent versus court-confirmed sales, which can affect timelines, negotiations and the overall transaction process. So it’s particularly important for families to work with professionals who understand the state’s probate framework and can anticipate potential roadblocks before they become delays.”
In New York, Decatur had a widowed client who before hiring him had been made administrator of her husband’s estate by a judge.
“She thought that gave her full right to sell the property, and that as administrator she would be awarded all the equity,” he recalls. “She was not. It was by state law meant to be split between her and his children or heirs. She went out of her way to hide his only biological child. She spent time and money, only for the heir to pop up on title. She didn’t understand her role, made mistakes that cost months of time, large sums of money, attorneys fees and aggravation.”
Pricing properly
When it comes to pricing a property to get it sold agents are finally in the driver’s seat, having all the answers to get deals done.
“But it can still be a very challenging conversation,” admits Decatur. “It is best to remain neutral, see if it is possible to have the court pick the price, suggest getting appraisals, or, if you are very brave, sit down with them, go through your CMA and show them market stats, absorption rates, list-to-sale-price ratios and average and median days on the market. This will educate them and set expectations.
“I refer to the market as if it were another party in the transaction, saying ‘Look at the average and median days on the market. That is the market telling us a timeframe. If we go past those timeframes the market is telling us something.’ That way it isn’t me setting a deadline or providing the information, it is the market doing it.”
