FAQs
Who is the personal representative or executor of the deceased's estate?
The Personal Representative or executor is appointed by the court to deed the property of the estate and this will be written in a court approved document called ‘The Letters’. Sometimes this individual is named in the will, and other times if there is no will or no one is named, the court will choose the personal representative. This role is not an easy task. The PR will liquidate all assets, pay all creditors and keep track of all accounting. When the time comes to close the estate, the PR will be responsible for distributing any available funds to the beneficiaries.
What is the timeline for selling the property?
The timeline will vary depending on the condition of the home and expectations of the family. The typical escrow period lasts 30 days, from when an offer is first accepted to the day the buyer's loan is approved. If the home still has a mortgage in place, the personal representative will be responsible for managing the timeline and possibly paying the mortgage until a sale agreement is reached. If the home is owned outright, the family can take their time to clean out the property, however, the estate cannot be closed until all assets are transferred out of the deceased person's name. I can get a property ready for market in a matter of weeks depending on the amount of personal items that need to be removed and flexibility of the family involved.
will the property be appraised?
The Personal Representative can elect to have the property appraised, however, it's not necessary unless there is a disagreement on the property value. This can be useful in situations where out of state family members are not familiar with the local real estate market and want more information. If the new buyer is financing the purchase, the lender will likely require an appraisal.
How are the sale proceeds distributed?
Final proceeds from the sale of the home will need to be deposited into an estate bank account. You will need to check with the attorney involved for the requirements and process to open an estate bank account. The title company can cut a check or wire the funds directly however the estate bank account will need to be opened prior to disbursement. No proceeds will be written or wired to a personal bank account. This is just one piece of the pie in settling an estate. The Personal Representative will need to inventory all assets, pay expenses and account for money in and out of the estate. After they notify creditors, there is a 4 month waiting period before any funds can be distributed. The entire probate process can take anywhere between 9-15 months, depending on the timing, as the PR will also have to file final income tax returns.
What is Probate and Why is the property going through Probate?
Probate is the legal process of getting things out of someone's name if they die, and getting them where they need to go. Probate is triggered when a deceased person owns real estate. Even if there is a will in place, the property will likely pass through Probate. Probate does not always mean that the home will be sold, but often times if no family members plan to keep the property- either to live in or as an income property- then it will need to be sold for the equity and will be distributed to the beneficiaries when all debts are paid
Who are the other professionals that can assist in the settling of an estate?
There are a few key players which include an Estate Attorney, a Financial Planner, an Accountant, and me, the Realtor. The Estate Attorney will process all legal paperwork and guide you through the will. If the deceased had a financial planner, they should have information regarding retirement accounts, investments and stocks. The accountant can assist with the estate and any taxes due. I will help you sell the property so that those funds can be included in the accounting.
Do you have to keep utilities active on the property?
It is best to keep gas and electric, water and trash services all active during the listing period. The buyers will want to inspect that the plumbing, sewer line, HVAC and hot water heater are all in good working condition. This is especially important during winter months as the pipes can freeze and cause a major issue if the heat is not running at a minimum temperature. The Personal Representative can account for these fees and be reimbursed from estate assets.
How is the listing price for the property determined?
I will provide a detailed analysis of the property comps, neighborhood activity and current market conditions to advise on a price range. This is a professional opinion, however, the listing price is ultimately determined by the personal representative. I provide the framework and am in control of the listing process, the PR is in control of the decisions.
I’m out of state, can I sell the property without spending a lot of time in Colorado?
Yes, I understand that this is a very challenging process for family members that are not local, so I have created a process to make it more manageable. With electronic contracts, the personal representative can sign all documents with ease. This is secure and efficient. I have partnered with a national title company that can close the property from out of state. You will either be able to sign online or with a mobile notary. I handle the details of the listing process and coordinate vendors needed to get the property ready to list. This can also include estate sale services, junk trunk or finding a place for furniture donations. The deed will need to be drafted by an estate attorney and I will also help coordinate that for the title company.