Many people cringe when they hear the word probate. They think the assets are tied up in court for years and can’t be touched. Fortunately, with the right steps, you can sell a probate property in Chicago, IL. Here’s what you must know.
Assign an Executor
If the deceased didn’t appoint an executor, the probate court will appoint one for the estate. The executor is typically the closest blood relative unless otherwise stated in the will. The executor handles all aspects of executing the estate, including selling a probate property.
Determine the Home’s Value
This step is very important. You must hire a licensed appraiser to determine the home’s value. The listing price must be at least as much as the appraised value and the sale price must be at least 90% of the appraised value for court approval.
The Executor Must Get Court Approval
Before the executor can sell the home, he/she must get court approval. With court approval, you can list the property with a real estate agent who can aggressively market the home for you. The goal is to secure the highest offer that is at least 90% of the appraised value (if not more).
Accept Bids
As the executor, you can accept bids on the property. If the final sale requires court approval, it’s important to inform the buyer upfront as this can delay the sales process. Once you accept an offer, you’ll complete a sales contract and submit it to your estate attorney to submit to the court.
Court Proceedings
The final bid and executed contract will go through a court proceeding. At the proceeding, the court will ask all present beneficiaries if they agree with the sales price or if there are any objections. Any beneficiaries not present have 15 days to review the offer and object.
If there aren’t any objections, the sale continues as any sale would. The buyer would secure financing and you would get the house ready to transfer to the new buyers. If someone objects and/or outbids the current bid, the buyer would receive his/her earnest money back and you’d sign a new sales contract with the higher bidder.
Distributing the Proceeds
The final step is to distribute the proceeds of the real estate to the heirs. The court informs the heirs of the final sale, so all beneficiaries know the amount of the sale, the terms, and can ensure they receive their intended portion of the estate.
Bottom Line
You can sell a probate property in Chicago, IL with the right steps. It takes the help of an experienced estate attorney, appraiser, and licensed real estate agent to ensure the sale meets all requirements.
The key is to ensure the property sells to the highest bidder, maximizing the decedent’s estate and operating in his/her best interests. The executor plays the most pivotal role in the process to ensure the estate is liquidated for the highest possible price.
If you are going through probate and would like to know more about your options and how we can help, contact us today!
