Selling a house in probate in Hampton Roads can be an emotional decision. When a loved one passes, their home and their assets are usually subject to the probate process. Probate in real estate in Virginia can mean a number of things. For general purposes, probate is the legal process that determines whether there is a legally valid will. In probate proceedings, the court will:
- (1) determine if there is a valid will,
- (2) whether there are heirs and, if so, who they are,
- (3) the value of any assets or properties involved, and
- (4) formally divide the assets amongst the heirs.
In many cases people die leaving their real estate behind. Selling a home in probate here in Hampton Roads is often handled with court oversight.
If you’ve sold a house before, you might think that you’re pretty familiar with the timeline, with the specific proceedings, and have a handle on what you can expect. You might even be tempted to call your friend, the REALTOR®, or the last REALTOR® who handled a home sale or purchase for you. You might not think that there’s anything different about selling a house after the death of a parent – but it actually is pretty significantly different.
Not all REALTORS® have probate experience. Inexperience can cause some big mistakes which ultimately cost the estate time and money to resolve. Needless to say, that’s not a position you want to find yourself in.
Dealing with the death of a family member is already a stressful time. Being a beneficiary on a will can be a blessing, but it also comes with a slew of overwhelming emotions. If you add the responsibilities of being the executor/executrix, suddenly you’re dealing with a legal world that you were unfamiliar with. It’s a situation that is positively rife with opportunities to make expensive, time-consuming mistakes.
Hiring a probate real estate agent will help make the sale of the home run much more smoothly.
What falls under the probate category in Hampton Roads, Virginia?
Obviously, the estate of a decedent may be subject to the probate process. (Decedent is the fancy legal word your lawyers will be using to describe your loved one who has passed away.)
In Virginia though, there are also guardianships, conservatorships, and trusts that all may need / want to sell real estate. Typically in guardianships or conservatorships, the real estate is being sold for the benefit of an incapacitated person. This means the person is still living, they just may not be able to make decisions for themselves. They have either chosen someone personally to manage their affairs or the courts have appointed someone.
Similarly, a trustee may be able to manipulate the assets for the benefit of a trust and its beneficiaries.
Who should I contact first to address the estate?
Always your first call should be to an attorney who handles probate cases. Many people search for a REALTOR®, but this shouldn’t be your first call unless asking for attorney recommendations. You are not ready to sign, you are gathering information and establishing connections at this point.
Even if the estate may be exempt from probate, it’s worth a consultation to find out the next steps. Filing incorrectly or missing a deadline could cost the estate time and money in an already lengthy and costly process.
Here is an article from a local law firm that describes the estate administration timeline in general terms.
This doesn’t mean your REALTOR® isn’t necessary. You can use this time to interview agents and get some market analytics done. This way you are well versed and can make the necessary adjustments to be market ready! It will also help the attorney if you arrive with an idea of the value of the home.
How quickly do I need to take action when selling a home in probate in Hampton Roads?
RELAX! This is not a 9-1-1 situation. After a loved one passes there are so many things that need to happen (services, arrangements, grieving). You do not have to contact a probate attorney they day after mom has passed. Please take your time and get yourself to a point where you can think and act logically and in the best interest of the estate.
Instead, take the first few weeks to process. Grieve your loved one appropriately. Make sure things go according to plan for their memorial. Once the dust settles it’s more helpful for you to gather information to bring to the consultation. Important documents include:
- Wills
- Trusts
- Bills
- Deeds
- List of heirs
- Bank account statements
- A market analysis on any real estate from a Realtor®
- Life insurance policies
- A rough inventory of assets (cars, properties, stocks, etc…)
This is not a complete list, nor is it necessary to have all of this information to make an appointment. The more information you have, the better the attorney can advise you on how to proceed. Also, a few weeks’ time gives you a little distance and perspective so you aren’t making emotional decisions.
What does a probate REALTOR® know that my regular agent doesn’t know?
There are a lot of ways that the regular process of selling a home differs from the probate process.
In a non-probate scenario, you’re acting in your own self-interest. Your timeline, the price you set, and the conditions on the sale of the home are entirely up to you. You know roughly the timeline you’re working with, both in terms of how soon to expect an offer (spoiler: these days, it’s a seller’s market!) and how long the home is in escrow. There are a lot of known quantities.
Selling a home in probate in Hampton Roads is very different; a sale of real estate is usually to fund the estate or to divide the proceeds among the beneficiaries. As an executor of an estate you’re acting in the interest of the decedent’s estate (even if you are a beneficiary, which can be a bit complicated).
You may not be able to set pricing depending on whether you’ve been confirmed as an independent or dependent administrator. (Your probate attorney can give you a little more insight into these roles). Additionally, you may be unable to accept an offer without confirmation from the probate court.
Many states have tried to streamline the probate process by adopting the Uniform Probate Code; as of the date of this writing, the Commonwealth of Virginia is not one of these states. You’ll likely find that the proceedings in Virginia are unique and slightly different than in other states. You’ll want to proceed carefully and on the specific instruction of your probate attorney.
The real estate agent will need to be on top of things since this isn’t a traditional home sale. She will need to use the proper contracts, list the property as a probate sale, and make the required disclosures. Many REALTORS® may not be familiar with the steps beyond what a traditional home sale requires.
What happens if mistakes are made when selling a home in probate in Hampton Roads?
If the REALTOR® hasn’t followed guidelines relating to the sale, you could go through the steps only to find the judge will not sign off. You may have to go back to square one, re-doing all the paperwork and scheduling a new hearing. The probate process often takes nine months or more (especially after COVID-19, where all the courts’ dockets are backed up). You likely won’t be too pleased to be met with further delays and additional required court appearances.
Do I need a realtor who is certified to handle probate sales?
It’s not a requirement that a REALTOR® be certified to handle probate sales, though there is a specific certification. In fact, REALTORS® can have considerable probate experience without the certification. It’s advisable to at least ask a REALTOR® whether he or she has experience handling probate sales. Obviously, a certification really is significant; otherwise, it’d be difficult to really assess that REALTOR®’s knowledge of and familiarity with the probate process. You may be better off searching for a REALTOR® with those credentials.
It also goes without saying that you’ll want to work closely with a probate attorney. However, you should be working with your REALTOR® to prepare the house and the paperwork. This way, the listing and sale of the home can move forward as smoothly as possible.
What’s YOUR experience handling probate sales?
I actually have prior experience working for a law firm that handled probate matters. I’m very familiar with probate cases in general and have also handled probate sales as a REALTOR®. I am actually one of the few Certified Probate Real Estate Specialists in the Hampton Roads area. I’m also a Senior Real Estate Specialist and I am definitely more than qualified to handle any probate-related issues.
I also have a list of resources readily available to my clients, for everything from repairs to lawn maintenance; from estate clean outs to staging experts. I have cultivated a list of reputable vendors who provide excellent services. This allows me to guide you through the process efficiently.
We all learn new skills, and that’s great – but you don’t want someone learning the process at your expense. If you’re in the probate process, you’ll want an experienced Hampton Roads probate REALTOR® to help you navigate this sale.
For more information, or to discuss issues related to your upcoming probate sale, give me a call at 240-381-5596.
Coastal Towne Realty
