John Henry Properties

Do contact a realtor to obtain a market analysis of value for the estate owned property.  You will need this as a starting point for the inventory of estate property that the probate courts may require.  If there is more than one heir to the estate, each heir is likely to have a different value estimate in their mind. A realtor can also provide you with a net estimate of proceeds to the estate from a property sale or lease.

Don’t go to the expense of hiring an appraiser to perform an appraisal.  A realtor should be able to give a value estimate and their efforts are at no cost to the estate. In addition, once the property is listed for sale, a buyer will normally pay for an appraisal if they obtain financing to purchase. 

Do contact the lender that handles mortgage payments for the real estate.  The lender needs to be aware of the change in ownership status from the decedent to the estate.  The lender may allow some forbearance in the mortgage payments, but they are not required to do so.  Any short fall on mortgage payments with penalty fees will be to the payoff and deducted from net proceeds of a property sale.  Remember to get the lender to provide you with a payoff estimate for the mortgage.  It will greatly improve the accuracy of a realtor’s proceeds of sale estimate.  Be prepared to provide the lender with a copy of the death certificate and copy of probate documents naming the executor/administrator of the estate.  Until this is done, privacy laws will prevent them from discussing the mortgage status with you.

Don’t use personal assets to cover mortgage payments if the estate has enough assets to draw upon for payments.

Do have a written agreement between estate beneficiaries on how estate expenses (attorney fees, property repairs, property clean up, etc.) will be paid or repaid if necessary.

Don’t incur expenses for property improvements, rehab, or cosmetic touch ups until you consult with a realtor to see if the expenses will enhance value over and above cost of repairs or improvements.

Do not pay for inspections to property unless advised by a realtor.  Mechanical inspections can be expensive.  A competent realtor can visually inspect the property and advise you on probable needed repairs and how they might affect the sale of your property.  In addition, most buyers will pay for their own mechanical inspections and the results may differ from yours.

Do have the property professionally cleaned and secured.  If utilities are available, get all of them transferred to estate and turned on.  Utilities will be needed to complete clean up and allow the property to be shown.  Without utilities turned on, a buyer will not be able to have inspections made.

Do contact a realtor to help analyze any immediate need for repairs/maintenance and advise you on the affect to value and marketing the property.  Remember, a realtor should be able to provide you with a market analysis of value with and without repairs and how they will impact a buyer’s financing options.

Do have copies of a death certificate, copy of probate documents, lender and attorney contact information.  This information will expedite the title research needed for the title company to make preparation for the eventual transfer of title in the estate sale of real property.

Do contact John Shellington at John Henry Properties with any questions you have.