Selling a House in Probate Texas Guide

Selling a House in Probate Texas

Have you and your siblings recently received a house as part of your inheritance, but it’s currently in probate? When loved ones pass away, it’s a heartbreaking event, and it often leaves the relatives wondering what they should do with all the properties in the estate. If you’re lucky, your relative did all of his or her estate planning before their death, and they have a last will and testament, sometimes called a testamentary, that divides the estate between the beneficiaries. However, if the individual didn’t leave a testimony or if the division of assets is contested, you may need to send the estate into probate to figure out how to split the inheritance and figure out which relative gets to act as the seller of the home. The good news is that even if the estate is in probate, you may still be able to sell the house to a cash buyer, like us at Investor Home Buyers in [market-state]. Let’s take a look at how you can become the seller of an inherited home, even if it’s in probate.

Table Of Contents

1. Selling a House in Probate Texas

2. Probate Process for Selling Real Estate in Texas

3. Is It Possible to Sell a House Before the Probate Is Completed in Texas?

4. Options You Can Consider When Selling a Probate House Texas

5. Is it possible to sell a house without going through probate in Texas?

Probate Process for Selling Real Estate in Texas

If you’re personally dealing with a probate for the first time, you might find the process confusing. After all, who specifically owns the house, and who is legally allowed to act as the home seller? To sort it all out, you’ll likely need to hire a probate attorney. You’ll also need to speak with the other people mentioned in the testamentary, and you’ll need to divide all the assets equally or follow the judge’s orders. Let’s look at the steps involved in becoming the seller of a house that’s been put into probate.

File Probate With the Local Court

If you want to become the seller of a home while it’s in probate, you must first file a notice of sale with the court that’s handling the case. You must also mail that same notice of sale to all of the beneficiaries listed in the testamentary or who are heirs to the estate if there’s no legal document outlining the deceased’s wishes.

The Court Appoints an Executor.

If there is no executor listed in the testamentary or no document left by the relative who recently passed away, the probate court is tasked with appointing a personal estate representative for the descendants’ estate. This is the individual who is responsible for dealing with all of the financial affairs, including calculating funds and paying creditors. The representative also becomes the legally responsible seller of the estate property. Once all of the creditors have been paid and the probate has been settled, the personal representative can distribute the remaining funds and assets of the estate to the beneficiaries.

Sell the Probate Real Estate

When real estate is sold during a probate, the seller and relatives should understand that the court won’t allow the house to sell for less than 90 percent of its appraised value. Because of this, the executor must hire someone to appraise the property. This will become the low end of the home’s value.

Once a buyer is found and their offer is accepted, they must put down at least 10 percent of the sale price. Next, the appointed personal representative of the estate that’s in probate must provide all of the heirs with written notice of the sale and give them at least 15 days to consider the sale and contest it if they wish. If all of the conditions of the estate sale are met, the probate sale is approved by the court, and the sale is completed.

Is It Possible to Sell a House Before the Probate Is Completed in Texas?

You absolutely can become the seller of a probate house in Texas before the estate is settled. The estate owns the house until the probate has been completed. This gives the executor the power to sell the home. However, it’s important to note that the proceeds from the sale of that house will go into an escrow account. The escrow account funds are distributed after the probate has been completed.

Do You Need to Go Through Probate to Sell an Inherited House in Texas?

If you’ve received a house as part of a personal inheritance, you’ll most likely need to go through probate in TX to become the seller. The probate process can take between six and nine months to complete. The good news is that the probate procedure to sell a house simply involves notifying the court that you want to sell the house and getting the appropriate approvals. However, it’s important to keep in mind all of the various taxes you may be obligated to pay after the sale of the house. Common taxes that must be paid on inherited property include an inheritance tax or an estate tax. You may have to pay capital gains tax, and you’ll have to pay the property taxes for the home. All of these taxes and fees can prove to be quite costly. However, if the estate has enough money, you’ll be able to pay these from your relative’s financial accounts, but if there aren’t enough funds, you may have to pay them from the house sale.

Texas Probate House Sale Issues

If you are the seller of a probate house, you should know that these types of home sales can take longer than other types of home sales. This is because the probate court and the heirs must agree to the sale before the home can be listed. The inherited personal home is also typically sold as-is, meaning the heirs aren’t going to make any repairs or upgrades. As a result, the buyer may be able to purchase the house at a steep discount, depending on its appraised value. However, the future buyer may also have to undertake extensive repairs and renovations before moving into the home with their family.

Options You Can Consider When Selling a Probate House Texas

Listing a house for sale while it’s in probate is similar to listing any other type of house once you receive the court’s approval. As the personal seller of the house, you can list it for sale with an agent. You can choose to sell the home to an immediate or extended family member or sell it to a cash buyer.

Listing the Probate Property With a TX Real Estate Agent

Even though your inherited house is in probate, the appointed personal estate representative can still list it for sale with a local real estate agent. This process is similar to how you would list your personal home for sale. The personal representative for the estate should make an appointment with the agent. Then, the agent should take photographs of the inside and outside of the property and put the home up for sale on the MLS for potential homebuyers to view.

Pros and Cons of Enlisting the Help of a Realtor

When you hire a real estate agent, you’ll get professional help to sell your home, which includes listing the home for an accurate price. This is because your agent understands the local housing market and what buyers are ready to pay. Realtors are also great at negotiating and filtering through bids. This means that you could maximize the sale price of your inherited property to increase your inheritance.

On the downside, you’ll have to pay certain costs, including commissions and various fees. This is because your agent gets paid via commissions. You may also have trouble finding the right agent to properly market your home.

Selling the Inherited Property to a Family Member in TX

Instead of hiring a realtor, you could choose to sell your home to an immediate family member. This provides you with an immediate buyer for the inherited house and skips all the fees associated with hiring a real estate agent.

Pros and Cons of Selling the Inherited House to Family

Selling to a family member keeps the home in the family, which can be important if the house has been in the family for many generations or holds fond memories. The family member may also get a discount on the home because they’re slated to inherit a share of it. For example, if four people are set to inherit a home and one of those four people wants to buy it, they’d already own 25 percent of the property.

Unfortunately, despite these benefits, it could still take a long time to sell the home to your relative. This is because the family members may not realize they must start the process within a certain timeframe. He or she may not have the required income to be able to get the funds to purchase the house, or they may want a significant discount on the property that the probate court won’t approve. Additionally, the other heirs and even the surviving spouse could object to the sale if they want to purchase the property or if they believe that selling the home to that individual won’t get the best price.

Selling a TX Probate House As-Is to a Cash Home Buyer

Your third choice as the seller of a house in probate is to sell the property to a cash home buyer. Selling to a cash home buyer sidesteps much of the drama, turmoil, and hassle of selling an inherited home. This is because cash buyers understand the probate procedure. They know that you have to go through the court to sell the house, and they understand that there could be delays due to disputes between the beneficiaries or within the court system. However, cash buyers also have the cash available to purchase the home as-is.

When a cash buyer says that they’ll purchase the probate home as-is, they mean completely as-is. There’s no need for the seller to clean it, perform any repairs, upgrade the property, fix critical systems, or even move the furniture out of the home. When you choose a cash buyer, the estate’s beneficiaries can remove what you want from the home and leave the rest. The Cash for Houses company understands that they’ll take care of everything left inside and outside the home after they have the deed to the property.

Is it possible to sell a house without going through probate in Texas?

In order to legally act as the seller of an inherited home, you may need to go through probate. This can occur if your relative’s testamentary is contested or if there are multiple beneficiaries. However, you may have the option of filing an Affidavit of Hardship or estate affidavit, which helps you sell your house much faster than if you have to go through the full probate process before selling. Additionally, if your deceased relative put the house into a living trust and named you as the trustee, you can avoid probate and simply sell the home.

How long does it take to sell a house in probate?

Family members should expect the house to take as long as nine months to sell or as long as the probate lasts. However, if an Affidavit of Hardship is filed or there’s only one survivor with a claim to the property, it is possible to sell the home much faster, especially if you choose an all-cash buyer.

Do all the heirs have to agree before a probate house can be sold?

When a home is in probate, all of the relatives with legal, vested interests in the property must agree to sell the home and how to divide the proceeds. Therefore, it’s very important that the seller discuss the sale of the probate house before the home is listed for sale.

Locating the Easiest Way to Sell a Probate Property

If you’re a seller who’s looking to cash out of a home that’s currently in probate, you might be interested in knowing the fastest way to sell probate houses. The truth is that the fastest way to sell a house, condo, mobile home, or undeveloped land that’s entered into probate is to enlist the help of a cash buyer. Cash buyers have the money to purchase your property immediately, even if a probate court oversees it. Not to mention, you can sell the home completely as-is, and you won’t be subjected to high fees or commissions. We’ll take care of the title company fees. All you have to do is take the cash.

If you’re the seller of a probate house and you have further questions or want to know more about how the cash-buying process works, don’t hesitate to contact us. We buy houses in all conditions and under most circumstances, including probate houses, foreclosures, and fixer-uppers all over TX, including in San Antonio, Houston, Dallas, Austin, and El Paso, as well as the surrounding areas.