Selling a House in Probate Pierce County Washington

Dealing with probate is tough. It’s often a time of grief, and then you’re faced with the complexities of selling a property. We get it. At Go To Joe! Real Estate, we’ve helped many folks in Tacoma and Pierce County through this process, and we understand it’s more than just a real estate transaction. It’s personal.

You’ve probably heard that probate properties can be a good deal for investors. And that’s true. But what about you, the homeowner, or the heir, just trying to navigate this difficult time? How do you sell a property in probate without feeling overwhelmed or taken advantage of?

That’s what we want to talk about. Not some dry, legal jargon, but real, practical advice from people who’ve been there.

First, let’s clear up the confusion: What is probate?

Whether a person died with a will assigning their assets to one or more beneficiaries, or they passed away intestate or without a will, their assets instantly become the responsibility of the executor of their estate or the Court. There are two types of probate: formal and informal. With an informal probate sale process, there is limited court involvement due to the estate having an original will or there is no dispute regarding the identity of the Heir(s). This article addresses the trickier process of the formal probate process, which can occur when the estate owes a large amount of debt, the will is contested, or the deceased left a will but the original will cannot be located. In these cases, the Court must become involved.

Can a House Be Sold While in Probate?

Yes, it can! Depending on how the estate was left when the person passes, a property in probate can be sold by three entities: the executor of the estate or a person named in the will to manage the distribution of the estate; the administrator of the estate, who is appointed by the Court to manage the estate for an intestate situation when there are Heirs/beneficiaries; and the Court when there is an intestate situation but there are no Heirs seeking administration. Once the executor of the estate, the administrator, or the Court decides who inherits the property, the Heir(s) or beneficiaries can begin the process of petitioning to sell the probate property. It’s not as straightforward as a traditional sale. You’ll likely need court approval, and there are specific legal requirements you’ll have to meet. This can involve:

Appraisals: Getting a professional appraisal to determine the property’s fair market value.

Court Hearings: Attending court hearings to obtain permission to sell.

Notice to Creditors: Notifying creditors of the estate so they can make claims.

What Does it Take to Sell a House in Pierce County Washington While in Probate?

Dealing with probate? It’s often a mix of grief and complex decisions, especially when real estate is involved. At Go To Joe! Real Estate, we’ve walked alongside many Tacoma families through these tough times, and we know it’s more than just a transaction – it’s personal.

Let’s talk about the executor’s role. It’s a big responsibility. You’re tasked with preserving the estate’s assets, ensuring they’re distributed according to the will. But what happens when the estate is burdened with debt, or the property itself is in disrepair?

Here’s the truth: sometimes, selling the property becomes necessary, even if there are heirs. It’s about fulfilling the deceased’s obligations and ensuring fairness.

Imagine this scenario:

An elderly woman, a beloved member of our Tacoma community, passes away. She’s named an executor to manage her affairs and has two heirs. But, as often happens, life throws curve balls. By the time she passes, medical bills and credit card debt have piled up to a staggering $90,000. She leaves behind a home valued at $150,000, but no liquid assets.

Now, the executor faces a difficult choice. The estate still owes $80,000 to the hospital and $10,000 in credit card debt. Despite her passing, these debts don’t disappear. If the heirs can’t cover the debt themselves, the executor has a legal obligation to sell the property.

It’s a tough decision, but it’s about honoring the deceased’s financial responsibilities. Once the house is sold, the $90,000 debt is paid off, and the remaining $60,000 is divided equally between the two heirs. It’s a way to ensure fairness and closure.

And what about situations where there’s no will and no immediate heirs?

That’s when the courts step in. They can order the property to be sold, and the proceeds are distributed to the closest relatives, according to state law. It’s about ensuring that the property doesn’t simply languish, and that any potential heirs receive their rightful share.

Steps for Selling a House in Probate

If you own a property in WA that is stuck in probate and you’re struggling to find a way to sell, there is hope! Depending on local and state laws, the process of selling a probate property can be completed in four steps. The first step is having an executor or administrator assigned, if there wasn’t one already assigned by the deceased.

If you are assigned as the executor (or you and the executor are in agreement on how to continue), you now have the ability to decide whether to sell the property or keep it. Whether the estate owes money to creditors or you inherited a house in another state that doesn’t make sense to keep, you can decide to sell that property and walk away. But before you put up that For Sale sign, you’ll need to have the property appraised. Once that is complete, only then can you petition the Court so that you can list the property for sale on your own (FSBO) with a trusted realtor who has experience with probate properties, or sell it directly to an investor.

Decide How to Sell the Property: 

Valuation or Appraisal 

First up is finding out how much that property is worth. To do this you’ll need a valuation of the land by a trusted professional, or you’ll need to hire a professional appraiser that understands the law in the area as it pertains to the process of evaluating the property’s current value. In many states, the Court requires the property to be sold for at least 90% of its appraised value. That makes it even more important to find an appraiser with probate property experience that won’t balloon the worth of the land.

Listing the House 

Once you have your appraisal, you, the executor, and/or your lawyer will need to file an intention to sell the house and other assets with the court. This form will include the final appraisal amount and which method you would like to use to sell the property. Methods can include auction, a traditional market sale, selling directly to an investor, and more. When the petition is approved, you are ready to list the property to let buyers know that the property is available. Whether you choose to sell the house yourself, use an experienced real estate agent, or sell directly to an investor, make sure that you have someone in your corner that has experience with probate properties.

Offers

Whether offers fly in or trickle, eventually you’ll need to decide which offer is right for you. Evaluating your goals for the sale of a house is an important part of this step. Do you need a quick sale so that you can pay off the estate’s debts? Would you prefer to wait a bit longer and see if you can get more profit from the sale? Or is the property in disrepair and needs a special buyer who can handle a complete remodel? These are all things you’ll need to take into consideration when you decide when and how to list a property in probate.

Knowing what goals you need to meet with the sale of the property will help you decide which offer to accept so that you can move on to the next step…

Notice of Proposed Action

Once a buyer makes an offer, they need to be informed that the sale can only be completed after the court’s confirmation. Due to disclosure law, this should not come as a surprise but a buyer inexperienced in probate may balk at the added time needed for the sale. This is often one of the reasons why a probate house is skipped over for another property, even if the probate property is priced to sell fast. The delayed timeline may cause a buyer to decide it’s not worth the wait. But if a buyer has come forward with an offer and doesn’t mind the wait, the Court will review the bid before releasing an order to approve the sale of the property.

Bidding

In the case of auctions, a property in probate can be marketed as ready to sell before the Court finalizes an Approval to Sale to help draw in more interested parties to bid. In the case of auctions, the Court often is the one who handles the bids. There are strict rules and guidelines that must be followed for this type of sale, making it only used as a last resort. Once someone has won the bidding the executor will petition the court to authorize the sale of the property, but if any of the Heirs object the sale can be canceled and the property put on hold as the Court decides the next steps.

Finalization of Sale

Hopefully, the sale of that house, condo, rental property, or piece of land is a smooth and straightforward experience. Even if you experienced a few hitches along the way, once you have an offer that the Court accepts it’s time to finalize the sale. The executor or lawyer will need to file a final account and petition for the final distribution but once the Court approves this, title documents can be signed to make the house sale official.

Mistakes to Avoid When Selling a Probate Property 

Moving Too Quickly 

Losing a loved one is a deeply personal experience, and when a property is involved, it adds another layer of complexity. At Go To Joe! Real Estate, we understand that families in Tacoma face tough choices during these times, often needing to balance the desire for a swift resolution with the need to maximize the estate’s value.

We see it often: families eager to move forward, to have the space and time to grieve. And sometimes, there’s a real urgency. Debt with compounding interest can quickly eat away at the estate’s assets, putting pressure on executors or administrators to sell the property as fast as possible. This urgency can lead to pricing the property below market value, a sacrifice made to settle debts quickly.

Then there are situations where the property itself presents challenges. Perhaps it’s in a state of disrepair, needing significant upgrades that the beneficiaries simply don’t have the resources or desire to undertake. In these cases, the temptation to undervalue the property and sell it “as-is” becomes strong. It’s a way to avoid the headaches and expenses of renovations, but it can also mean leaving money on the table.

We understand these pressures. We know that grief, financial obligations, and the condition of the property can all contribute to a need for a quick sale. But we also believe that families deserve to explore all their options and make informed decisions.

Here’s what we see at Go To Joe! Real Estate:

• The Emotional Toll: Families often prioritize emotional closure over financial gain, especially in the immediate aftermath of a loss.
• The Burden of Debt: Compounding interest can create a sense of urgency, leading to rushed decisions.
• The Challenge of Repairs: Properties in poor condition can seem overwhelming, prompting beneficiaries to seek a quick, “as-is” sale.
• The Need for Fairness: While speed is important, families also want to ensure that the estate’s assets are distributed fairly.

We’re here to help you find that balance.

We can provide:

• A fair, all-cash offer, allowing for a quick and hassle-free sale.
• Guidance on navigating the probate process, helping you understand your options.
• An honest assessment of the property’s value, helping you make informed decisions.
• A compassionate approach, recognizing the emotional weight of your situation.

We believe that families shouldn’t have to sacrifice value for speed. We’re committed to providing solutions that meet your needs, both practically and emotionally. If you’re facing these challenges in and around Tacoma, please reach out. We’re here to help you find the right path forward.

Not Completing a Real Estate Disclosure 

Real estate disclosures can feel like a minefield, especially when you’re dealing with a probate property. Here in Washington, and across the country, these laws are designed to protect buyers by ensuring they’re aware of any “material defects” before closing. But what happens when you’re selling a property you’ve never lived in, a common situation in probate?

Let’s break it down. Most states, including Washington, require sellers and their agents to disclose, in writing, any known “material defects.” Think of these as significant issues that could impact the property’s value or pose a safety risk. As defined by the National Association of Certified Home Inspectors, we’re talking about specific problems with major systems or components of the house. A worn-out water heater, for example, might not be a material defect, but a cracked foundation certainly would be.

Now, here’s the tricky part: what if you’ve inherited a house and never actually lived there? How can you possibly know about hidden issues like lead paint, asbestos, or a leaky roof? This is where probate properties present a unique challenge.

Fortunately, some states recognize this dilemma. In certain situations, the executor, administrator, or even the real estate agent might be exempt from completing the standard disclosure forms. This exemption acknowledges that they lack firsthand knowledge of the property’s condition.

However, this doesn’t mean you’re completely off the hook. It’s crucial to understand your state’s specific laws. That’s where experience matters. An experienced real estate agent who specializes in probate, or a seasoned investor who’s handled probate properties before, can be invaluable. They can help you navigate these legal complexities and ensure you’re complying with all regulations.

And if you’re looking for a simpler solution, consider selling directly to an experienced investor like Go To Joe! Real Estate. We’re familiar with the intricacies of probate and are willing to purchase properties “as-is,” even when full disclosures are challenging. This eliminates the risk and stress of potential disclosure issues.

Ultimately, you have options. It’s about finding the right path that balances your legal obligations with your desire for a smooth and efficient sale. We’re here to help you navigate these complex waters, right here in Tacoma.

Failing to Hire a Lawyer

Let’s be blunt: probate is a legal labyrinth. Trying to navigate it without a seasoned attorney is like trying to build a house without a blueprint. At Go To Joe! Real Estate, we’ve seen firsthand how crucial legal expertise is in these situations, especially when real estate is involved.

We can’t stress this enough: a knowledgeable real estate lawyer, one with specific experience in probate, is your most valuable asset. They’re not just paperwork pushers; they’re your guide through a complex legal process.

Think of it this way: you wouldn’t attempt open-heart surgery without a surgeon, right? Similarly, you shouldn’t attempt to navigate probate without a skilled legal professional. They understand the intricacies of court filings, the specific requirements for selling a probate property, and the potential pitfalls that can derail the process.

A good probate attorney will:

• Expedite the Process: They know how to petition the court efficiently, ensuring you can put the property on the market as quickly as possible.
• Provide Legal Guidance: They’ll walk you through every legal step, ensuring you’re compliant with all regulations and minimizing the risk of costly mistakes.
• Mitigate Stress: They’ll handle the legal complexities, freeing you to focus on other important matters, like grieving and supporting your family.
• Identify Blind Spots: Even a simple consultation can reveal potential issues you might have overlooked, saving you time, money, and headaches down the road.

We understand that hiring an attorney can seem like an added expense, especially during a financially challenging time. But consider it an investment in peace of mind. A skilled probate attorney can save you far more in the long run by preventing costly errors and ensuring a smooth and efficient process.

Whether you’re dealing with a straightforward probate or a complex estate with multiple heirs and creditors, legal counsel is indispensable. Don’t go it alone. Let an experienced probate attorney be your guide through this challenging process. We at Go To Joe! Real Estate have seen many times how much easier the process is when a good attorney is involved.

Waiting Too Long to Start the Probate Process

Grief is a powerful force, and it’s understandable to want to pause everything after losing a loved one. But while you’re processing your loss, the clock keeps ticking, especially when it comes to probate properties. That period of waiting, though emotionally necessary, can have serious financial consequences.

Think of it like this: the property doesn’t go into a holding pattern just because you’re grieving. Property taxes continue to accrue, adding to the estate’s liabilities. Utility bills keep arriving, demanding payment. And if there’s a mortgage, the bank expects its monthly payments, regardless of your emotional state.

These expenses, seemingly small in isolation, add up quickly. The longer you delay initiating the probate process, the more these costs accumulate, steadily eroding the estate’s assets. This silent drain can leave you in a far more difficult financial situation than you anticipated, potentially jeopardizing the inheritance intended for beneficiaries.

It’s a delicate balance, we know. You need time to grieve, but you also need to protect the estate’s interests. That’s why understanding the potential financial impact of delaying probate is crucial. Don’t let the weight of grief inadvertently create a financial burden. At Go To Joe! Real Estate, we often see families struggling with this, and understanding the cost of waiting is the first step to making informed decisions.