Mistakes in Virginia Probate Real Estate can be costly, in terms of time and money. Don’t set yourself up to fail- get ahead of the curve and have a plan.
Whether you knew that it was coming or you were surprised by the sudden death of your loved one, it’s difficult to deal with. When you’re named executor of the estate and you have to deal with reconciling your loved one’s will, selling their real estate, distributions to beneficiaries, organizing the funeral, and your own mourning, well……you’re dealing with even more.
It’s easy when you’re in mourning to make mistakes. It’s easy to let your grief take over, to follow the advice of well-meaning (but otherwise uninformed or misinformed) friends and family members, or to push off dealing with anything related to the estate until tomorrow.
Selling real estate through the probate process in Virginia is not as simple as selling real estate outside of the constraints of probate. While ‘any’ real estate agent can technically handle a probate sale, the reality is that probate involves a great deal more than a regular sale. There are several programs that offer training and a designation for real estate professionals who are experts in probate specifically.
While it’s not required that you use a Realtor® with one of those qualifications, you really should if it’s your goal to move through the process quickly, efficiently, and with as little heartburn as possible.
Few people have experience with probate. Serving as the executor of an estate is a position of trust that a person is not likely to have to undertake more than once in their life. The learning curve is steep (and potentially very costly).
Here are 5 big mistakes I see people making when selling a loved one’s home:
Mistakes in Virginia Probate Real Estate #1: Selling the Property to an Investor Right Away
It’s a good idea to have some goals in mind and also to be clear about the options that are available to you.
- Do you plan to sell the property as-is?
- What is a reasonable price for the property’s current condition?
- Could it fetch a higher price if you did a couple repairs to the property?
- Do you want a quick sale, at any cost?
- Do you want to maximize the value of the property?
If there’s no money on hand to make repairs, no matter how much it might improve the value of the property, your best option may be to sell to an investor with a cash offer.
However, don’t be mistaken; the investor is not your friend. They are in the business of making money, and finding off market deals has great potential to increase their profit margins.
It may sound great to accept a cash offer, but a good Realtor® can help you determine an appropriate “as is” price as well as a price at top condition. By listing the home on the MLS even in “as is” condition, you may have *multiple* investor offers to choose from.
A lot of investors also look to wholesale deals. Wholesaling means they find out your bottom line, enter into a sales contract with you that nets your desired amount, then they turn around and assign their buyer’s rights to a bigger investor at a higher price. Basically, they claim the equity gap that you left on the table by working with that wholesaler. That can be tens of thousands of dollars that could have gone to the estate if you had discussed your options with a REALTOR®.
Being clear about your goals as well as what it’ll take to achieve them will help you create a plan that helps keep you moving forward. Working with a real estate professional who can help you do that is going to be critical here.
Mistake #2: Not Using the Right Professional for the Job.
Ultimately, probate in Virginia touches on a number of different areas – and, in some instances, each area involves a different professional. There could be an attorney, a CPA, and a REALTOR® involved. Knowing which professional to involve at which part of the process, and hiring those with the appropriate qualifications can help save money and expedite things.
You shouldn’t rely on your attorney to do things that are outside of their field of expertise, like maintain the property. You shouldn’t rely on your REALTOR® to do things like accounting records and balance sheets, since that is a job more suited for a CPA.
This process is complex, time consuming, and incredibly daunting especially if you’ve never done this before. Some executors attempt to keep the team of experts small in an effort to reduce costs, but in many cases hiring the wrong professional or not hiring one at all can backfire and actually increase costs.
Not only that, but if everything isn’t in perfect order, it’s possible that you could find mandating you to start over or redo something – wasting time and costing more money.
Mistakes in Virginia Probate Real Estate #3: Waiting Too Long to Begin Probate in Virginia.
I know, you’re in mourning. It’s a difficult time for you and your family, and you probably don’t really feel like dealing with all of the estate stuff right now. You feel overwhelmed, you have your own separate life to contend with, and the last thing you want to do is complicate it further by opening probate in Virginia. It’s easy to feel tempted to play the ostrich and bury your head in the sand rather than keep things moving forward.
Often though, I find that the process becomes more demanding the longer it goes on. Not only do you have to care for the Virginia probate real estate and continue to pay taxes and other expenses associated with it, but creditors will get pushier and any heirs will start to get impatient.
Costs mount as the time increases and so, too, do the stresses. Do yourself a favor and enlist a team of professionals to help you sell a probated property in Virginia and handle it sooner rather than later. You’ll be so relieved that you did.
Mistakes in Virginia Probate Real Estate #4: Not Picking Up the Mail or Taking Care of Basic Maintenance .
It seems easy, but you’d be surprised how often these basics are neglected. There’s a LOT going on in the wake of the death of a loved one, even if you knew all along that it was coming.
Picking up the mail serves a couple of purposes. For one thing, it lets you know about anything important (demands from creditors, bills, statements, policies, etc…) that you might otherwise have trouble finding out about. For another, it sends a clear message that the property isn’t just sitting there vacant.
Landscaping, too, serves the purpose of letting passersby know that the home isn’t empty, as well as improving the chances of attracting a prospective buyer.
If your property looks like no one is tending to it, it can become a target for people who would vandalize the property or squatters you’d have difficulty evicting later on. That will make the process take longer and increase the difficulty in selling it.
Don’t live nearby or aren’t able to do these things yourself? These are the types of services that a REALTOR® can help you address. Aside from listing and marketing your home for sale, a probate REALTOR® has a whole list of resources to help you and can arrange to make those things happen on your behalf. You don’t have to carry the weight of the world on your own shoulders; hiring solid experienced professionals can help you make sure that nothing slips through the cracks.
Mistake #5: Failing to Communicate with Other Parties Impacted By the Process.
The longer probate draws out, the more impatient everyone else involved will become. You’ll lose time dealing with them, or money to pay professionals to deal with them. The more efficiently you resolve all of the outstanding issues and the more effectively you communicate, the less likely you’ll be dealing with super angry creditors or heirs.
It is super important to not only understand your role as executor or administrator, but to know how to effectively and efficiently carry out those duties.
I know, it’s complicated! And you’ve probably never been here before. You may not even live anywhere near where the property is located, which can compound the difficulties of performing your duties But you don’t have to do all of the things yourself. In a lot of cases, the right attorney and REALTOR® can help you tackle these things.
Does it feel daunting to have to sell Virginia probate real estate? I can help; in fact, I do it all the time. If you don’t already have an attorney to help you handle the probate process, I can recommend someone. I work closely with landscapers, general contractors, painters, estate clean out companies, and others who can help minimize the amount of time and money and blood pressure points you expend on the process.
Losing a loved one is difficult under any circumstances, and I am so sorry for your loss. But I can also help you focus on mourning and taking care of your family, while I deal with the business of selling your loved one’s property.
For more information, or to schedule a time to chat, give me a call at 240-381-5596.
Coastal Towne Realty
