If you are an executor for an estate that includes valuable real property, such as a house, you may need to sell the property during the probate process. For instance, you might need to pay off estate debts or liquidate assets so they can distribute to heirs and beneficiaries.
However, unless you have full authority under the Independent Administration of Estates Act, you will have to meet certain court requirements to sell the home during probate.
Probate sale requirements
Whether you choose to sell the home privately or through public auction, a confirmation hearing will be necessary before the sale is complete. A judge may only confirm a private sale if the offered amount is at least 90 percent of the current appraised value of the home. A new appraisal may be necessary if it has been more than a year since the most recent appraisal.
Overbid process requirements
After receiving a valid bid, a judge reviews the offer in a confirmation hearing. However, other parties present may also bid on the property during the hearing. Overbids must exceed the original buyer’s offer by a certain amount, and the judge may continue accepting bids until reaching the highest offer.
Under the Independent Administration of Estates Act, you have the option of requesting full authority over the management of estate assets when filing a petition for probate. This may allow you to bypass the formal court confirmation process, which could make it easier to attract potential buyers and complete the sale more quickly.