How to Sell a House in Probate Philadelphia
Can I Sell My House While In Probate? Sell Inherited House Philadelphia
Are you in the process of inheriting a house in Philadelphia, and going through the Probate process? If you're wondering how to sell a house in probate Philadelphia, then you're in the right place.
First of all, condolences. We know this is a difficult time. Our goal here is to help make it easier by walking you through the process of selling your house during probate in Philadelphia, PA.
We buy probate & estate houses in Philadelphia, any condition.
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First Of All: Can You Sell a House in Probate (Philadelphia, Pennsylvania)?
Short answer of "Can I sell a house during Probate?" is:
YES!
However, there are several important steps you will need to go through, that differentiate a sale during probate from a normal retail person-to-person sale.
IMPORTANT: All of the following information only applies if you are the Executor or Adminstrator of the Estate!
If you are not the Executor / Administrator... you can NOT sell any property that is part of the Estate while it's in Probate (or you will potentially find yourself in some legal hot water!).
The reasoning for this is to prevent any foul play or under-the-table dealings that would potentially harm the estate while the probate process is still ongoing.
In other words:
If you want to sell a house in probate (before the probate process has completed)...
... You are going to have to jump through quite a few extra hoops to demonstrate your good faith efforts to get the best price for the property.
What does that mean?
If you want to sell your house in probate in Philadelphia, you'll be required to go through all of the following 6 steps.
STEP 1: Independent Professional Appraisal
You'll need a certified Appraiser to come give an Appraisal of the property in its current condition, before you can do anything else.
There are different types of Probate that will apply, depending on the appraised value of the property. That's why this is the necessary first step, to even know what to do next when it comes to selling a Philadelphia house in Probate.
STEP 2: Filing the Consents to Power of Sale with the Probate Court.
This document / petition to the court is the next step in getting permission to sell a house going through probate in Philadelphia.
There are several conditions that must be met for this document to be acceptable.
You'll most likely want to consult with your estate attorney for this step.
STEP 3: List the Property for Sale
Once you've completed Step 1 & Step 2, this is pretty much the same process you'd always have to go through when selling your house.
You'll need to decide:
- Will you use a Realtor? Or For Sale By Owner [FSBO]?
- Will you do any work on the house, or sell it as-is?
- What is the Listing Price? (You will be required to sell the property for at least ~80% of the Appraised value while it's still in Probate.)
And of course, you'll need to let prospective buyers know that the house being sold is in Probate (since that might effect their interest, and will affect the actual closing process).
STEP 4: Report the Sale & Petition For Order Confirmation
To give proper notice to the estate & heirs, and to keep the sale above-board and honest, the closing process is a bit different when selling a house in Probate in Philadelphia.
The interested buyer will make an offer, accompanied by a 10% deposit. A Notice of Proposed Action must then be mailed to all heirs, stating the terms of the proposed sale & giving a 15 day window to place objections.
If there are no objections, the sale may proceed without a court hearing... if there are any objections, a hearing will be required to sell the house during probate.
STEP 5: Advertise the Sale of the House in Local Newspapers
As another form of notice, this time to the public (rather than to the heirs), once the sale is slated to close you'll need to advertise it a the local newspaper for the county in which the property resides.
This is done to:
a.) Inform the public that the real estate is being sold during the probate period, and
b.) Facilitate open bidding so that the property will be sold at the best price.
During this time period, it will be possible for other potential buyers to come & out-bid the original proposed buyer, for the sake of the estate receiving the best possible price for the property.
STEP 6: Overbidding Process at the Court
Finally before the closing, there will be a court hearing, during which the judge will ask if anyone present would like to bid on the property.
Each successive bid must be 5% plus $500 over the previous offer. The highest bidder is required to give a cashier's check to the court after the bid is confirmed. If the highest bidder is a new buyer, the original buyer will receive their deposit back.
At this point the Contract of Sale can be finalized.
Then you have achieved your goal of selling a house in Probate in Philadelphia, Pennsylvania!
Want help getting your house sold?
We buy probate & inherited houses in Philadelphia:
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Consider This: Selling Your Philadelphia House During Probate
You might look at your situation and think about the pros of having a house passed down to you.
Some of these benefits might include:
• Using your inherited Philadelphia house as a rental property
This can be very beneficial if executed efficiently.
Rental properties produce cash flow and provide an additional source of income.
The fact that you could be renting a house without having to make a down payment gives you a huge financial edge.
Also, if you've inherited a property with a plenty of equity or owned outright, you will have an even higher NOI (Net Operating Income) down the road.
• Adding to your net worth
Net worth = total assets ($) - total debt ($)
If your family member passed with high equity in the house or owned it outright, you will not have to account for much debt at all.
• Potential cash (if liquidated)
If you decide to sell your inherited home in Philadelphia, you could use that money for a wide range of expenses.
However, you might be better off selling the house to local real estate investors, like ourselves, for CASH.
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Selling Your Inherited House In Philadelphia For Cash
We will buy your Philadelphia house during probate.
Benefits of selling to us include:
• Home is bought for CASH
When you sell to us, you will receive all cash for your home.
There will be no need to discuss financing options or anything of the sort.
Financing is not ideal in your case because there is no particular need for it
• Quickly escape extra mortgage
If the home was not owned outright before it was passed on, you might have not only inherited the house but also its mortgage.
If you sell your inherited house in Philadelphia to us, you can free yourself from that mortgage fast.
We can generally close the sale of your house within 2-4 weeks.
Wouldn't it be nice to not only get out of an extra mortgage but also receive all cash for your house?
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• Save money on labor costs
If you inherited an estate, you probably also inherited your family member's personal belongings.
Now, you'll have to consider:
- cleaning out the home of these belongings,
- cleaning up the mess that might have been left,
- repairing any damages,
- and making any other improvements to the home.
For example, if you plan to keep the house for a rental you will need to fix them yourself or pay for them to be fixed before you can lease the house to tenants.
That being said, when you sell a Philadelphia inherited house to us, all you are need to do is collect the belongings you might want before you sell.
That is because we will buy your Philadelphia inherited house in 'as-is' condition.
There will be no need to spend any money or time on home improvements.
Learn more about selling your home in 'as-is' condition.
• Avoid the costs of listing the "traditional" way
When you sell a Philadelphia inherited home to us, you are able to save money by avoiding the hefty fees associated with using a Real Estate Agent.
This is because it's not necessary or beneficial to involve an agent during any part of the process.
If you sell your inherited house in Philadelphia by using an agent it can not only be expensive but drastically delay the sale.
In fact, the average time it takes to sell a home in 2011 & 2012 is between 81 - 106 days!
That equates to about 3 months of unnecessary:
- extra mortgage payments,
- property taxes,
- and home insurance.
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Wrapping It Up: Selling Your House During Probate Philadelphia
If you didn't already, now you realize the financial benefits whether you keep or sell your inherited house in Philadelphia.
We understand that you might have an emotional or personal connection to this house, as this is not uncommon.
If you are able to overlook this, you might want to seriously consider selling the house.
If you're thinking 'I want to sell my inherited house in Philadelphia', then receiving a no obligation cash offer for your inherited house is a great place to start.
Regardless of what decision you decide to make, we hope it is one that benefits you and your family.
