This week, we delve into the complexities of selling a home during probate. But first, what exactly is probate?

Probate is the process of administering a deceased person's estate, which essentially means managing and settling their affairs, including properties. While it can be emotionally taxing to handle a loved one's belongings, today we’ll focus on the practical aspects of the process.

When a person dies, their legal representative, often in conjunction with executors, ensures that the deceased's wishes are carried out as accurately as possible. If the estate includes property, a valuation is required as of the date of death. For example, if John Smith died in September last year and a probate valuation is sought now, the valuation must reflect the property's value at the time of his death. This involves finding comparable property sales from that period to determine a price range. These valuations are then submitted for approval and used to settle any tax obligations or distribute the estate accordingly.

What Does "Subject to Probate" Mean?

If you see a property listed as "Subject to Probate," it means the application has been submitted but not yet granted. The sellers are marketing the property in anticipation of the probate process being completed.

Can they do this?

Yes, they can. However, this adds a layer of uncertainty to the process. In the past, such sales might have been expedited once a sale was agreed upon, but that is no longer the case. The timeline for probate is unpredictable, and each case must be evaluated individually. If the probate application has just been lodged, be prepared for a potentially lengthy wait.

The Silver Lining (Get it?!)

Despite the delays, probate sales present unique opportunities. These properties are often older homes that haven't been updated, allowing buyers to customise them to their tastes. 

Key Considerations for Probate Sales

1. Duration of Probate: Understand how long the property has been in probate. If you agree on a purchase price today, you must be prepared to wait 3-6 months (or longer) for the sale to complete, during which market conditions can change.

2. Family Dynamics: Knowing the circumstances behind the sale can provide valuable context. An estate handled by a single, informed adult differs vastly from one involving multiple heirs with conflicting interests.

Property Problems Deepen

And the government need to start listening…

For Example:

- Simple Case: John leaves an only child who understands the market and follows the agent's guidance. This typically leads to a straightforward process.

- Complex Case: Fiona, Ken, Peter, and their brother Hank (who lives in the States) can't agree on anything. With varying desires and expectations, the process can become prolonged and challenging.

Tips for Sellers Preparing a Probate Sale

1. Declutter and Clean: A tidy home is more appealing to buyers. Remove personal items and clutter to create a neutral space.

2. Emotional Readiness: Selling a loved one’s home is emotionally charged. Take the time needed to process your feelings and be prepared for the sentimental aspects of the sale.

3. Communicate with your legal team: Be open about what you do and don’t understand. Make sure you/they have all they need throughout the process. They can provide guidance and manage the process efficiently.

Tips for Buyers Considering a Probate Sale

1. Be Patient: The probate process can take time. Ensure you’re willing to wait and remain committed to the purchase despite potential delays.

2. Understand Market Value: Research comparable properties to ensure you're getting a fair deal. Probate properties may need updates, so factor renovation costs into your budget.

3. Check the Status: Inquire about the current stage of the probate process. Knowing how far along the application is can help manage your expectations regarding the timeline.

BONUS

“Take Away” and “TakeAway” for Loved Ones

When a loved one passes away, decluttering their home can be daunting. A helpful approach is the "Take Away and TakeAway" method. Invite family and friends over for a gathering where you enjoy a takeaway meal and share memories. During this time, loved ones can take items they cherish. This ensures no one is left with the burden of unwanted items, and it prevents future disputes over belongings.

Random Real Estate Trivia

Did you know that in Tokyo, Japan, there's a house called the "1.8 Meter House"? It’s a narrow residential building designed by architect YUUA Architects & Associates that measures just 1.8 meters (about 6 feet) wide.

Despite its incredibly slim profile, the house is ingeniously designed to be fully functional, with living spaces spread across multiple floors to maximise the limited width. This unique architectural solution addresses the high cost of land and the need for efficient use of space in one of the world’s most densely populated cities.

*Check it out here

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They can book it here.

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Andrew

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