When dealing with probate real estate in Baltimore, Maryland, you may have many questions you would like to have answered. Below, we offer some information about probate properties as well as ways to handle them.
Probate For Beginners!
Probate is the legal process following a homeowner’s death where the property is either transferred to someone in the family or sold. This is only the case when the property was not in a trust or owned with another person that did not have full rights of survivorship. In most cases, probate real estate in Baltimore needs to go through the probate process because it needs to be sold so the proceeds from the sale can be split up between the beneficiaries if it was not indicated in the will to go to anyone or more people.
The first thing to do is to determine which state the probate file needs to start. The best place to start in the state of Maryland is the Office of The Register of Wills website. Then, you will need to hire a lawyer to analyze the will then draw up the paperwork. Most likely the attorney will require a retainer to start the process but if you have trouble finding the funds, feel free to reach out and we can advance the money for you. Once, The attorney is hired then the paperwork is taken to the courts. The judge determines who is the rightful owner of a piece or portfolio of real estate usually based on the previous owner’s will. Very rarely does the judge rule against the will.
Who Pays For Probate?
You can either pay for the probate out of pocket, or you can arrange that the probate costs be taken out at closing. The executor of the estate will determine a listing price for the property, negotiate the sale price and execute the sale contract. The lawyer that is handling the probate for you will then send their invoice to the title company handling the real estate transaction. The probate will be subtracted from the proceeds of the sale of the property. Their fee can range from a few hundred dollars to well over a thousand dollars. This varies by state and value of the property.
Can I List Probate Real Estate?
You cannot sell or even list the property before the probate is completed or without approval from the court. You will have to petition the court to be allowed to list the property. When it is listed available for sale, you may take offers on the property and have a contract; however, the closing will not occur until the probate is complete. When the probate case is filed, the title company knows who now can legally sell the property.
How Much Should I Sell For?
In order to know how much you can ask for the real estate, you need to have the property appraised so you know how much it is worth and if there are any problems with the structure because these issues must be disclosed on the contract for sale. When you receive offers, you must take into consideration the probate cost. If you own a vacant lot, make sure the offer is enough to cover your bill. Most houses and other types of real estate will sell for way more than the cost to have the probate completed. If you want to sell the probate real estate quickly, you may want to list on the lower end of the market comps or appraisal price, this will ensure your property receives offers very quickly.
I’ve Accepted An Offer, Now What?
In this hot market you may have a few offers from which to decide from. After the negotiations are said and done, then we need to execute the contract and open escrow. If you have are not sure about the contract, reach out to a lawyer familiar with probate real estate in Baltimore to help you understand all the terms, conditions, and riders necessary to complete the deal. When the title company is chosen, make sure you have a copy of the lawyer’s invoice handy so the attorney can get paid with the proceeds of the sale.