How to Sell a Probate House
Do you want to know how to sell a probate house? If yes, you are in the right place. If you are a named executor of your family member’s or someone’s will, you have specific responsibilities. In today’s article, we will help you with valuable information and assist you in the process of selling your probate property.
Experts at Sell House Fast Group recommend gathering in and valuing the estate’s assets, paying off debts and liabilities, calculating and paying inheritance tax, and distributing the estate based on the information in the will. Likewise, unless the beneficiaries mentioned in the will want to have the property transferred into their names, you have to sell it as an executor.
Bear in mind that selling probate property as an executor is usually different from the typical process. You must gain knowledge of specific processes to streamline the entire procedure. Sell House Fast Group has put together this essential guide to support you and optimize the process. Read on!
What Is A Probate House?
Probate is a commonly-used term for the legal process that requires managing a deceased person’s estate. Many estates include property, such as the departed home. Therefore, the term “probate house” or “probate property” is essential to learn when managing such matters.
Besides, the probate process involves more than properties, but in today’s article, we will talk about probate houses and give you tips on selling them appropriately for a higher profit.
Selling A Probate House
Many people find it challenging and time-consuming to sell a probate property. It is crucial to know what you need and develop a sophisticated plan of action to avoid hassle and streamline the entire process. Focus on the following tips and tricks and create a plan that aligns with your goals, allowing you to sell a probate property quickly.
Apply For The Grant Of Probate
The probate grant is a legal document that gives you the legal authority to deal with the deceased person’s affairs. You can’t sell the property until you receive the grant of probate. So, you need to provide the receipt from HMRC because it is part of the application for the probate grant.
The purpose of the receipt is to confirm that you have paid the inheritance tax. Likewise, the authorities want to verify that no inheritance tax is due. So, this includes the authority to enter into and sign different contracts on behalf of the estate. Remember, the primary aspect of the agreement is to sell a probate house.
As an executor, it is crucial to know that obtaining a probate grant takes between 12 and 15 weeks. Therefore, it is vital to prepare yourself and take all the necessary actions when selling a property. Continue reading!
Secure The Probate House
Secure the property if it is empty. Close and lock all windows and doors, switch off all electrical and electronic appliances, and check that there are no water leaks or running water anywhere on the property. Contact the home insurance provider and let them know that the property owner has died.
Besides, the policyholder’s death means termination of the policy under some insurance policies. Therefore, it is crucial to check whether the insurance company still covers the home. You will also need to tell the insurance company that the property is unoccupied.
Check For Valuable Items
Once you have informed the insurance property, the next step is to locate and secure valuable items—for example, jewelry in the house. Make sure you check all rooms, cupboards, and drawers.
Remember, any item that is worth a significant amount of money, you must value it properly. These items will contribute to the estate’s overall value. We recommend removing all valuable items from the property to decrease the risk of theft.
Probate House – Inform Organizations Of The Owner’s Death
Contact the local council and inform them that the person has died and let them know that the house is empty. The council will need a correspondence address to carry out essential processes, such as sending any outstanding or future bills.
Besides, you have to contact all the utility providers, including electric, gas, water, phone, and internet provider. That way, they will check for any outstanding or future bills and send you the information.
Get The Probate House Valued
It is crucial to obtain a professional probate valuation of the house from the local estate agents. Getting a valuation is a vital step for the probate process. Remember, this valuation must be backdated to the person’s date of death.
We recommend getting 2-3 separate valuations for accurate analysis and correct figures. Next, you have to add the house value to the total value of the property’s contents. Add this to the value of other assets, including bank accounts, shares, etc.
Once you have done this, the next step is to deduct debts or liabilities that were outstanding on the property at the date of death. The purpose is to calculate how much the house is worth.
Probate House – Check The Title And Deeds
Experts recommend checking the house’s title. It is a good practice to optimize the selling process. Make sure you do this with the land registry. Get a solicitor to check the title entries, allowing you to see whether any restrictions affect the property.
At the same time, checking the title and deeds enables you to see any defects in the title and other relevant documents. That way, you can further investigate and ensure everything is optimal before selling the probate house.
Probate House – Calculate And Pay Inheritance Tax
After knowing the value of the property, it is essential to calculate the inheritance taxes. The purpose is to determine whether inheritance taxes are due. Remember, this is a complicated and time-consuming process because inheritance tax liabilities vary depending on numerous factors.
For example, who will inherit the property! Also, whether the deceased person was married to someone who died before him/her. Sell House Fast Group recommends obtaining a professional’s advice in this domain. Once you have calculated the tax liability and submitted all the required forms, you will have to pay the inheritance tax if it is due.
Prepare The Probate House For Viewings
Although you are waiting for the grant of probate, it is an excellent opportunity to put the house on the market. We recommend establishing a solid relationship with your estate agent because you will work together to sell your home.
Likewise, carry out a few house improvement projects, such as decluttering, boosting the curb appeal, and tidying up the garden before the estate agent takes the photos. The purpose is to present your house adequately and attract more potential buyers.
When you prepare for viewings, make sure you air the property out and give everything a clean and run the heating and even buy some flowers. It takes between three to six months on average for the authorities to issue the grant of probate.
However, it may take longer for more complex properties or estates. You can market the property while awaiting the grant of probate, but you can’t complete the house sale without this.
That’s why it is wise to apply for the grant of probate early to avoid complications and delays. The purpose is to streamline the process and ensure you get the grant early and sell your house quickly.
Hire An Estate agent
After getting the property valued as an essential part of applying for the probate grant, you can discuss with an estate agent about putting the house on the market. Make sure you get a fair price for the home, especially if you are not in a hurry to sell the property.
A professional estate agent must take the stress away from you and guide and support you in selling your property. The agent will make substantial efforts by liaising with other estate agents, mortgage brokers, and solicitors.
Cost Of Selling House
There are various costs involved when you want to sell a probate house. These include the legal cost of probate, house clearance, additional insurance, electricity, and gas, etc. It is crucial to keep the house warm or cool during the winter and summer, respectively. Likewise, maintaining the garden during the summer months will also cost you some money.
Clear The House
Once a sale has been agreed on for your house, you will start clearing out the contents. Although it takes between eight to twelve weeks, you can avoid delays and other complications if you do business with Sell House Fast Group.
On the other hand, if you follow the traditional approach, you can use this time to get your house ready for completion. For example, if unwanted or useless items don’t hold any value, you can donate these to charity.
Similarly, you can instruct a house clearance company to visit your property and take everything away. Some companies may charge for this service, while others do this for free as they sell on the property’s contents.
