So what exactly is a probate sale and how do they work in Oklahoma City? Typically, a probate sale will happen when a homeowner dies and they owe a significant debt to banks and other lenders. Their home will be sold to pay off their creditors if the sale of the rest of the estate isn’t enough to satisfy this debt. Any money left over would be distributed to the heirs or other beneficiaries, depending on whether the deceased left a will.
A home in probate will be marketed and sold just like any other traditional property in Oklahoma City, typically with real estate agents listing them and showing them to potential buyers. And sometimes they’re sold to local cash home buyers like Premier OKC Home Buyers. Anyone is free to make an offer on these homes, but the process can be a bit more complicated.
How Does a Probate Sale Work in Oklahoma City?
The probate process can vary depending on where you are, but the local court will typically appoint an executor, or estate representative, when there is a will. They will appoint an administrator if there is no will. This individual is responsible for settling the estate and guiding it through the probate process. Part of this process involves identifying legitimate creditors of the deceased.
The executor will then be charged with selling estate property if it must be liquidated to pay creditors. The court will typically order an appraisal to set a listing price.
The executor must petition the court for permission to sell the home when at least one buyer has put in an offer. The deceased’s heirs and the estate’s beneficiaries will be notified, and the sale can move forward with court permission if no one files an objection.
All interested buyers must typically appear in court to submit their bids if more than one offer is received. The highest bid wins, and the winner must hand over a cashier’s check for at least 10% of the offer price to the estate’s executor or administrator.
Why Do People Sell Real Estate During Probate?
The sale of real estate is one of the main factors that makes an estate take longer to settle. In the simplest cases, the estate going through probate either does not include any real estate, or else each property passes on to one heir without any disputes. When things are not so simple, though, the personal representative of the estate has the unenviable task of conducting a probate sale. These are some reasons that people decide to sell houses during probate:
- Selling the house is the only way to satisfy the deceased person’s debts, because the deceased person did not leave behind enough liquid assets to pay off their debts.
- The deceased person did not leave a will, and selling the house is a necessary step toward dividing the estate among the heirs.
- The deceased person specified in their will that they were leaving the house to multiple heirs, but the heirs would rather have money equivalent to the value of the house, instead of keeping the house.
Common Mistakes When Selling Real Estate During Probate
When it comes to selling real estate during probate, there are a lot of so-called professionals in the Oklahoma City area who claim to be probate specialists. We can tell you from experience that a lot of these claims are false. At Premier OKC Home Buyers, we are true probate knowledge experts and we’ve gone through the process many times. Here are some of the common mistakes we people make when selling real estate through probate:
- Hiring inexperienced professionals to represent you during the probate process
- Selling property in probate without authority
- Mishandling of real estate disclosures
- Leaving the house vacant for an extended period
Ready to Sell a Oklahoma City Property During Probate?
Call Premier OKC Home Buyers today at (405) 226-5563 to get the process started. We’ll ask a few questions about your property, your situation, and provide a free consultation. In most cases, we can pay cash for your probate property in just a couple weeks.