There is a legal process an executor and administrator must follow to administer an estate. The process includes how to sell a probate home.
It is prudent for an estate administrator or successor trustee to hire a trained, certified and experienced probate and trust sales agent to sell real property. Kathleen Daniels is a Certified Probate Real Estate Specialist (CPRES) and certified in professional fiduciary management for trustees. Education, Training, Knowledge, and Experience does make a difference.
This report is comprised of statistical data from April 1, 2019, through April 30, 2019, extracted from our local Multiple Listing Service (“MLS”) as of May 1, 2019.
The data includes single family homes, condominiums, and townhouses and may not include “off-market” sales.
Probate Homes & Trust Sales Activity in April 2019
The breakdown of the sales activity is as follows:
- There were 8 homes for sale
- 3 single family homes
- 2 townhouses
- 3 condominiums
- 5 homes in probate
- 3 homes in trust
- 9 pending sales (under contract)
- 8 single family homes
- 1 condominium
- 8 probate sales
- 1 conservatorship
- 5 Homes Sold
- 4 single family homes
- 1 condominium
- All 5 probate sales
Highest & Lowest Price Homes Sold
The highest price probate home sold was a single family home located in Cupertino 95014. The home has 2 bedrooms, 1 bathroom, approximately 992 square feet of living space on an 11,760 square foot lot. The home is 99 years old.
The home listed on February 13, 2019. List price $1,888,000. After 10 days on the market, on February 23, 2019, the MLS reported pending status. On April 9, 2019, it was reported sold. The final sales price reported was $2,180,000 which is $292,000 above list price. There were 9 offers. The buyer purchased the home with cash – no financing.
The lowest price sold was a single-family home in San Jose 95127. The home has 3 bedrooms, 1 bathroom, and approximately 992 square feet of living space. It listed on February 22, 2019, at a list price of $639,999. On March 3, 2019, the status was reported as pending. On April 9, 2019, it was reported sold. The final sales price reported was $597,000 representing $42,999 below the list price. There were 8 offers. The buyer had conventional financing.
Selling a home in Santa Clara County Probate Court
The process for an executor selling a probate home in Santa Clara County starts with the filing of a petition for probate. The process is administered by the Santa Clara County Superior Court, Probate Division.
At the hearing, the petitioner asks for authority from the court to administer the estate. The authority granted by the court depends upon if the person died with a Will, or Intestate without a Will, and if Full Authority is granted under the Independent Administration of Estates Act or IAEA.
In the video below, Jennifer F. Scharre, probate and trust attorney discusses the advantages of administering a California probate estate with the power to sell real property without the court’s permission. This authority is granted under the Independent Administration of Estates Act.
There are many things an executor needs to know about selling a probate home. The probate property sale procedure must be followed. Once the court grants authority to act on behalf of an estate and issues “Letters” the home can be listed with an experienced real estate agent. Some sales require court approval. Most probate home sales are sold without court approval.
“For example, when selling a parcel of real property independently, you can find a real estate agent, you can list the property, you can sell it and you can close escrow all within a very normal amount of time – somewhere around 30 days.” Jennifer F. Scharre
Once an offer is accepted, the attorney for the estate follows the California probate notice requirements and sends a notice of proposed action to all parties entitled to receive notice. If there are no objections to the sale the balance of the home selling process is much like a non-probate home sale.
Jennifer discusses how to probate an estate in California in a short video.
Successor Trustee Selling a Home in Trust
When a successor trustee sells a home held in trust we need to confirm the title to the real property is held in the trust. We also confirm the representative capacity of the person selling the home. Once we get all of the necessary documents we can execute a listing agreement and open escrow.
There are some seller disclosure exemptions when selling a home in a trust. We go over the process with our clients upfront to ensure they understand what is expected of them and all of the details we manage.
We specialize in selling homes in probate, conservatorship and in trust. We have helped many executors and successor trustees over the years sell homes. We understand the challenges people face. Experience does make a difference. We believe a higher level of service is needed when representing an estate. We are about high tough versus high volume of sales. We know that we cannot provide the highest level of service we provide to our clients and also do a high volume of sales.
Many investors seek opportunities in probate real estate. While probate homes may offer good investment opportunities they may not meet an expectation of finding a deal of the century. This is especially true in Santa Clara County.
We track probate home sales in Santa Clara County every month. There are many investors and non-investors competing for the “hot” properties.
When you need help, call Kathleen Daniels at 408-972-1822 or contact us and request a consultation.