How to sell a house in probate

What is probate?

Probate is the legal process that occurs after someone passes away. During this time, their assets—including real estate—are distributed according to their will or, if there is no will, according to state laws.

Steps to selling a house in probate:

1. Appoint a personal representative

   If no personal representative has been named in the will, one must be appointed to oversee the estate. This person, among other responsibilities, manages overall estate administration, including the sale of real estate.

   • The personal representative must file documents to open the probate process, detailing the decedent’s assets.
     
     
   • Once appointed, the personal representative will receive signed domiciliary letters from the court, granting them authority to act on behalf of the estate which includes the authority to sign an offer to purchase, or a deed.
     
     

2. Get the property appraised

   An accurate property appraisal is critical.

   • Wisconsin law requires that the property be sold for fair market value unless otherwise specified in the will. An appraisal determines the most up-to-date fair market value, ensuring the property is listed at the competitive price.
     
     
   • While the tax bill provides an estimate of the fair market value, an independent appraisal offers a more precise value for sale of the real estate on an open market.
     
     

3. List the property

   Work with a real estate agent experienced in probate sales.

   • The agent will market the property and help find potential buyers.
     
     
   • Typically, the personal representative will not provide a property condition report, and this requirement should be waived in the accepted offer. Personal representatives should not provide representations and warranties for real estate they have never resided in.
     
     

4. Accept an Offer

   Once offers come in, review them carefully.

   • Consult your agent to choose the best option for the estate.
     
     
   • Remember, an accepted offer isn’t binding until the personal representative has received the signed domiciliary letters.
     
     

5. Close the sale

   With the accepted offer and signed domiciliary letters in hand, proceed to closing.

   • Complete the necessary paperwork to finalize the sale.
     
     
   • The sale proceeds should then be deposited into an estate bank account until the estate is ready to disburse its funds to the necessary heirs, beneficiaries, creditors or otherwise.
     
     

Navigating probate sales with confidence

Buying or selling a house in probate involves additional steps compared to a typical real estate transaction. However, with the right knowledge and professional guidance, it can be handled efficiently.

How we can help

At Zimmer and Rens LLC, we assist clients with real estate transactions, including probate sales and purchases. Whether you’re buying, selling, or investing in real estate, we’re here to guide you through every step of the process.

Schedule a 30-minute consultation with our team. We’ll review your situation and provide a tailored plan to protect your transaction and avoid liability.