Anyone with an inherited property in Memphis, TN, knows just how overwhelming it might be to sell the house. Probate can often complicate matters, and it can be overwhelming to navigate.
Thus, it’s best to learn about the probate process, what you should expect, and how you can make the process as seamless as possible. Having a personal representative in probate court can make a big difference.
That said, here’s what you need to know about selling a house in probate in Memphis.
What Is Probate?
Simply put, probate is the legal process of reassigning a deceased person’s property (like an inherited house) to their beneficiaries. When someone dies, their assets need to get divided and transferred to beneficiaries.
Likewise, you must pay all debts before closing the estate. Lawyers refer to the deceased’s will or the laws of intestacy in the probate process.
In probate, the executor handles distributing the decedent’s property and resolving any claims against the estate. The executor is also the go-to party when the heirs agree to sell the property.
In most cases, the court supervises the entire probate process. Therefore, the court will not only approve but also ensure there’s nothing to contest the sale.
Memphis Probate Laws
Typically, a personal representative opens the probate cases in Memphis. If the deceased left a will, the personal representative is the individual named in the will. If there’s no will, the probate court will appoint an administrator to oversee the distribution of assets.
The personal representative must file a petition with the probate court and appear before the judge. Often, they do this with a probate attorney in tow for legal advice.
After filing the petition, the court will issue a confirmation. That means that the personal representative has the authority to sell your house.
Probate Laws in TN
When in probate, Tennessee has a court and judge designated to handle probate cases. Generally, probate in the state can take between six months to a year.
However, if there’s a dispute among the beneficiaries or unique assets and debts, the process could take longer. In Tennessee, not all assets need to go through the probate process. Only properties that the deceased person owned alone can undergo the probate process.
Assets that aren’t part of the probate process include:
- Properties held in joint tenancy, including homes, company shares, and bank accounts.
- Properties held in tenancy
- A payable-on-death bank account
- Assets only transferable after death
- Life insurance proceeds
- Living trust assets
- Retirement accounts
If there’s a will, you must prove its authenticity in court for the probate process to continue. The personal representative must also notify creditors and anyone who the estate of the deceased owes.
You also need to pay all the estate’s accrued federal taxes. Not long ago, the state of Tennessee imposed taxes on estates valued at over $5 million, but that is now a repeal.
Handling Probate Disagreements
When selling your house in probate in Memphis, disputes, disagreements, and even lawsuits may arise. Probate disputes often arise when there’s a disagreement among interested parties relating to estate planning and the administration and distribution of the estate.
The last thing you want is your family members fighting over your estate. Likewise, no one wishes to get involved in a probate dispute.
Unfortunately, probate issues still arise even in cases where there’s a will. In such cases, dependents may want to challenge the division of the estate.
Since probate cases involve many legal issues, it’s best to involve a probate lawyer for handling probate disagreements. In doing so, selling your house in probate will be easier without serious legal ramifications.
Selling Your House in Probate Court
If you’re looking to sell probate property, one question that may linger on your mind is, “Can I sell a house at its market value while in probate?” Well, contrary to public opinion, you can sell a probate house at its current value.
Nevertheless, you still need to avoid falling foul of the law since the probate court will follow the entire process closely.
As a probate home seller, the first step is to appraise the property by an independent and certified appraiser. After that, most cash home buyers in Memphis can offer a recommendation.
However, it’s best to remember that you can only sell the property after the court confirms that it’s on probate. Likewise, investors can only buy your property after seeking a petition from the probate court.
As a probate house seller, you also need to obtain permission from the court before placing your inherited house for sale. It’s only then that you can advertise the sale in local newspapers and other platforms.
On its part, the court will set aside a date for a court hearing so that potential buyers bid for the property.
Using a Realtor to Sell Your Home
The probate Memphis process is long and difficult, more so for a first-timer with little or no legal knowledge. For some people, selling a house in probate using a realtor makes things easier.
But unfortunately, that’s not the case because there’s no guarantee of an immediate sale even when dealing with realtors.
Typically, realtors have dozens of other properties that they also need to sell. Therefore, the chances are that yours may not be a priority to them. Anyone who understands the real estate game knows that hanging onto a property for too long is a liability.
Listing your property with a realtor can also be expensive. For starters, your inherited house will need to get repaired to put it at par with similar properties on the market.
Furthermore, you need to often clean and stage the house to attract as many potential buyers as possible.
While waiting to sell the property, you need to pay utility bills, taxes, and insurance. Moreover, using a real estate agent to sell your house in probate in Memphis means you might pay a hefty commission.
You’ll realize that selling your house by yourself is better than using a realtor if you consider all these costs.
Selling an Inherited House for Cash
If you don’t want to undergo the hassle of listing your probate house with a realtor, you may want to sell it directly for cash. Selling the property without involving brokers saves you time and money.
It helps you avoid the repairs, staging, cleaning, closing costs, commission, and long waiting period. Thus, what you make from the sale will be closer to the appraised value.
When selling to cash home buyers, you won’t have to worry about its condition. Instead, you get to sell it as is, without any fees, commissions, or obligations.
In essence, several original buyers target individuals who wish to sell inherited real estate as fast as possible. So, you don’t have to wait for months or even years to close the probate sale.
Selling a house in probate in Memphis, TN is a complicated process. There’s a lot to do, from dealing with the courts to negotiating with potential buyers. Additionally, you are still dealing with the memories of losing a loved one, which might make things harder.
Dealing with probate is difficult, which is why at Fair Cash Deal, we buy homes in Tennessee from probate house sellers.
You’ll have a cash offer on the table as soon as we inspect your property. There’s never any obligation when dealing with us, and we work together to settle your probate house sale.