The Unique Challenges of Probate Properties

There are a lot of unique situations that come up in regard to real estate, but few are as frustrating or as time-consuming as probate properties or inherited properties. Often these properties sit empty for months while they go through the probate process which can result in a lot of neglect and damage that must be fixed before the house can be sold. Some of the biggest challenges of working with inherited properties are:

Monthly Costs

While the home goes through the probate process the fees and upkeep of the home will have to be paid. This could mean paying for HOA fees, lawn care and maintenance, security system monitoring, utilities, property taxes, insurance, and other fees. Those fees can add up quickly, especially for homeowners who are already paying all those expenses for the home they currently live in. Those fees will also continue after the probate court has released the home for sale because the house will need to have work done on it in order to get it ready to sell. That means the person inheriting the home could be paying those monthly carrying costs for a year or more.

Investing Money To Make The Home Sell

Very often a home that is inherited from a relative has to have a lot of work done on it to make it attractive to buyers. Today’s buyers want homes that are updated and move-in ready. The amount of money that you’ll have to spend fixing up the home depends on the condition that the home is in. A relatively new condo or townhouse probably won’t need too much updating before it’s ready to sell. But a single-family home that’s been in the family for 50 years is likely going to need structural work and big renovations before it’s in good enough shape to attract buyers.

Finding A Local Expert

If you don’t live in the area where the home is, you will need to find a local real estate market expert to help facilitate the sale of the house. It can take time to find a local agent that has the skills and expertise to take on an inherited property that needs work done and sell it. You may end up having to make multiple trips to the area where the home is located, which can be expensive and take up a significant amount of your time.

Rehab Time

Even a small-scale renovation can take a lot of time and money. If the property needs to have major work done like a new roof put on, major plumbing and electrical upgrades, or large-scale construction like new floors or a new kitchen you can expect that renovation time to take months. It will take a lot of time as well as a lot of money to get the home into good condition so that it’s ready to go on the market. In the meantime, you will need to be paying holding costs and other expenses too. You may be able to find contractors who can do the work quickly but that means the cost will be higher.

Trying to Sell A Fixer Upper

Putting time and money into the property to get it ready to sell is certainly one option that you have and can be beneficial if you have the means to do so. If you don’t have the money to put into renovations or if you want to get the house on the market as quickly as possible you can sell it as a fixer-upper to someone that wants to do a lot of the repairs themselves. While today’s buyers generally look for updated or new homes that are move-in ready, there are real estate investors and companies (like us) that can be of great assistance when dealing with probate properties. In such a case, you would likely receive a cash offer for the property, decide whether or not to accept it, and if you do, the investor would take that home off of your hands in its current condition.