documentation, and court oversight throughout the property’s marketing, offers, negotiations, and sale. The sale generally involves the estate executor or administrator of the estate, perhaps an attorney representing the estate, a real estate agent representing the seller (the estate), one or more buyers who place bids with the court, and, often, buyers’ real estate agents. Those unfamiliar with probate sales will not understand the specialized vocabulary of probate sales. Such transactions also involve disclosure documents and contracts not used in other real estate transactions. A real estate agent should be experienced in probate and trust sales if you intend to hire them for this process. TYPICAL PROBATE AND TRUST PROPERTY SALE PROCESS • Appointment of an Administrator or Executor. Usually, the decedent’s will names an Executor accountable for distribution of assets, including real property. If no executor is named, if the named executor is unable or unwilling to serve, or if there is no will, the court appoints an Administrator. • Executor establishes a list price for the real property. The Independent Administration of Estates Act (IAEA) provides that the price may consider the appraisal by the Probate Referee. Listing price is normally determined with the assistance of a real estate agent experienced in probate and trust sales. The property is then listed for sale through that agent/broker. • The real estate agent markets the real property. This generally involves several approaches, including signage, newspaper advertising, listing on one or more real estate websites and hosting open houses for other real estate agents and potential homebuyers. The real estate agent will also schedule appointments to show the property to interested parties who inquire directly. Buyers of probate property may be looking for a bargain; however, their offers are limited by the court. An accepted offer must be at least 90% of the Probate Referee’s appraised value. Once a buyer is found, the real estate agent assists the seller in negotiating terms that are satisfactory to both parties.
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