Inheriting a property after losing a family member or beloved friend can be an overwhelming experience. With or without a will, estates must go through the process of probate. Naturally, if there is a will, the process is much smoother. The home would be in perfect condition in an ideal world, with the mortgage paid off and no debts filed as liens against the property. Typically, however, most properties fall short of this mark.
The financial obligations assigned to the property carry over to the beneficiaries, along with the mortgage, insurance, taxes, and any monthly bills. The expenses which accumulate during the probate process are a heavy financial burden. Often, selling the property as quickly as possible is the best solution for all involved. Read on as we explore five tips for selling a probate property in New York.
In essence, probate is the process of the prooving of the will; the courts ensure that the deceased’s instruction for the disbursement of their property is completed and require that a judge oversee the process. Because of the legalities involved, our first tip for selling a probate property in New York is to understand that when a property is in probate, you will need to prepare for a lengthy period before the beneficiaries can sell the property. You will also need to keep a close eye on deadlines, carefully complete any paperwork, and follow the rules and order of operations set out by the probate court.
Suppose you’re not concerned about investing money into the property to prep it for sale yourself, making any necessary repairs. In that case, our next tip for selling a probate property in New York is to consider selling it as an FSBO or for sale by the owner. Should you follow this course, be sure you understand the laws surrounding disclosure. Even if there’s an issue with the home you aren’t aware of, the buyers could take legal action against you as the seller in the future. Finally, to determine a realistic price point, you should compare similar properties nearby that have recently sold. Just don’t skip on the high-quality photography and staging the home, as the tech-savvy buyers of today will typically scroll by properties that don’t present well online.
Now, for those with no time constraints, a great tip for selling a probate property in New York is to consider offering owner financing. You’ll need to do the same prep and repair work and are still under the same risks from disclosure after the sale. In this arrangement, you’ll be offering the opportunity of homeownership to buyers who may not be quite ready to assume a conventional mortgage. As they save towards their downpayment and get their credit prepared for the lender’s approval, you’ll be making a higher profit on the property. In addition, for the courtesy of taking your home off of the market for this period, you can set the sale price higher than the current market because you risk the market taking off and potentially selling at below market value in the future.
If the property is in great shape or can afford to make all of the repairs required to bring it up to par, selling a probate property in New York with a real estate agent may be your best route. Even after the commissions, broker fees, and closing costs, some properties are better suited to this method of home sales and can provide the beneficiaries with a sizeable profit. Just remember, a real estate agent cannot provide you with the closing date for sale or even guarantee the property will sell; if you or the other beneficiaries are in a financial bind, this may not be a suitable sales method.
Our final tip for selling a probate property in New York is to consider making a direct sale; you’ll save valuable time with a guaranteed closing date lined up. As professional investors themselves, direct buyers don’t work on commissions; instead, they work full-time buying properties for cash, in as-is condition and rehabilitating them, one by one in New York. As a result, direct buyers know the current real estate market exceptionally well. After taking the time to talk to you about your property and any hurdles that you’re facing with the probate property, a direct buyer will help you understand your options so you can make an educated decision. To this end, they can provide you with a realistic estimate detailing how much you would profit from each type of sale vs. the offer for a direct sale, which you’ll agree is fair.
Doesn’t it make sense to talk to a direct buyer like those at CoMax Properties before you decide on one of the more common methods of selling a New York property? Contact CoMax Properties today at (516) 704-7025.