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So, You Want To Be A Probate Specialist Selling Real Estate?
So, you want to be a probate specialist selling real estate? There is always some sort of issues with title and or the heirs. These matters can take months to get straightened out. Meanwhile, you are talking with the attorney and the seller regularly moving toward having keys made and meeting the locksmith, that is once you have the court orders.
Next, you hope you can get in to evaluate the property, except when squatters are living in the property as per the photo below. This is a real photograph after calling 911 at one of my new probate properties. The Sacramento Police department showed up, and they were so very caring and helpful. Do not ever go inside with squatters as you do not know if they have weapons or are on dangerous narcotics. Always call the men and women in blue as this needs to be handled by the professionals.
Call The Police
Let’s assume you have been able to obtain a listing agreement, now the appointments with various vendors are the next phase. The heirs often need to come and take whatever mementos they want, and this can be a recipe for disaster. Things are often stolen or somehow missing, so now the fun starts. There may be items that need to be sold, items that need to be donated, or things that need to be dumped. This phase can be very time-consuming. Many probates are hoarder houses. Also, rat infestation is often prominent. Baiting and trapping is a process. The clock is ticking. The hours invested grows each day.
Squatters
Utilities are often turned off, or squatters have utility services on. There is never a shortage of items on the probate checklist. This is only the tip of the iceberg, as it can take months and months to get the property ready. There are dozens of vendors to be scheduled. Then later that you are inching closer to putting the property on the MLS. This is not a race, as your patience will be tested time and time again. There are often abandoned vehicles as well.
You can’t make this stuff up
I could talk for days on this subject with hundreds of crazy stories, but I think the photos give you a general idea. If you have questions about your Probate or Trust property, please call Weintraub and Wallace Realtors with RE/MAX Gold real estate. We can be reached at 916-233-6759.
—–JaCi Wallace
Specialize as an Agent Selling Probate Real Estate
How did I start to specialize as an agent selling probate real estate? An agent in my previous office was a probate process expert. She was closing about 20+ cases a year. When she tried to sell her business, she lost a large client, a professional fiduciary. The Realtor was fired by her fiduciary. I then bought this Realtor’s book of business and inherited two busy professional fiduciaries who worked with two very busy probate attorneys.
What prepared me for the visual physical part of probate sales? My previous career was as a Deputy Sheriff-Coroner. In this role, I assisted the Yolo County Coroner’s department with body removals. I gave face-to-face death notices to next of kin. In this job, I performed homicide and suicide investigations, as well as natural death reports, routinely. I collected and preserved the evidence. Having extensive courtroom testimony experience and completing police reports has been useful in my probate sales. With my past profession, it was a natural evolution to work in the probate process of real estate sales.
I’ve worked on some very interesting probate cases. I find the work very satisfying. My past professional experience working in and around the death of persons and all that was involved, attracted me to probate work. I especially enjoy the teamwork with the professional fiduciary and working with attorneys on each case.
Much of the time to specialize as an agent selling probate real estate is very interesting. I know I am helping the heirs by liquidating the real property assets. The cases are scientific to me in nature. I have had to prepare homes for sale that have been previous crime scenes. These types of listings require me to have the property cleaned up and ready to show. It is always fascinating work. No matter what has happened, the real estate must be sold.
If you have a real estate transaction that needs probate expertise, there is nothing too much for us. Call Weintraub & Wallace Realtors, with RE/MAX Gold. We can be reached at 916-233-6759.
–JaCi Wallace
Probate Sales with a Court Referee Appraisal
Probate sales with a court referee appraisal are required by the Probate Court to sell within no less than 90% of the value. Referee values are part of the I and A, “Inventory and Appraisal” completed by the referee. A referee is a court appraiser who establishes the values of estate property. These values are then made part of the document for the Probate Court called an “I and A.” The referee generally completes a drive-by exterior appraisal on vacant property. They are not always completely accurate.
I work with a few attorneys who rarely have a referee evaluation on the real property as the listing is often very close to the date of death. I recommend using an experienced independent licensed appraiser to evaluate value all probate and trust sales. This gives us a documentable detailed value analysis. On trust sales with heirs or court-mandated sales, we order an appraisal. Generally, I and A are not ordered on a trust sale.
As Realtors, we give estimates of value, they are not appraisals as we are not licensed to appraise. Appraisals are not always the gospel either. I’ve had bank appraisers come in as much as $150,000 low. We still do our estimates of value, a Comparative Market Analysis (CMA). Realtors can come very close in value. If a case goes to court for any reason, the appraisal gives the independent 3rd party price evaluation documentation.
If you have an I and A, an independent appraisal and a CMA this gives you three sources to support value. The courts never care if property sells overvalue. When a property is sold for less than an I and A, you better have documentable proof of all sale efforts made. Always maintain very detailed records in case there are ever any questions for the probate referee.
Probate sales with a court referee appraisal can be challenging. I will write another blog about referees using case studies. Of course, the names will be changed and the locations to keep anonymity.
Guidelines for probate and trust real estate expert:
- A Superior Court Judge in the Probate Court reviews resume and experience with probate and trust sales
- A Probate Judge first declares a Realtor a probate expert to provide testimony to the court on probate real estate matters.
- Routinely handle probate sales for Professional Fiduciaries and administrators.
- Listed and sold probate and trust sales for over a decade.
- Testified in Probate cases before the court
- Attend overbid hearings in court for properties
- Familiar with the probate process, documents and timelines
If you have a probate real property or a trust sale that you need to liquidate, call Weintraub & Wallace Realtors, with RE/MAX Gold. We can be reached at 916-233-6759.
–JaCi Wallace
As-Is Sales Subject To The Probate Code
As-is subject to the probate code is what many buyers agents forget when they write offers. We always put this into the agent confidential remarks on MLS. A seller is under no obligation to repair anything on the California residential purchase agreement. Probate sales double-down, if you will, on the as-is.
Getting into contract on a probate sale and then attempting renegotiating the price later is not a smart idea. Probates generally are working with little to no extra cash and every penny is most often required by the administrator of the estate.
If you are trying to purchase a probate listing, always make your highest and best offer and stick to it. Your inspections are to satisfy you as to what you are buying. As-is subject to the probate code is always an important consideration when writing an offer.
If you are interested in purchasing a probate listing, please contact Weintraub & Wallace with RE/MAX Gold. We are listing specialists and our exclusive buyer’s agents can help you with your home purchase. Contact us at 916-233-6759.
–JaCi Wallace
Is The Property Condition Disclosure Your Friend?
Is the property condition disclosure is your friend? When you list your Sacramento home for sale, you’ll be asked to fill out a property condition disclosure form known in California as a Transfer Disclosure Statement (TDS). You’ll also fill out the California Natural Hazard Disclosure Statement.
These detailed forms are required when transferring ownership of residential property of 1 to 4 units. The questions cover every material fact about the home and any appliances that will transfer with the home. Contrary to the laws in some states, sellers are also required to disclose the location of registered sex offenders. This information can be found via a map search at the California Megan’s Law website. The Residential Purchase Agreement contains this information and that covers the required disclosure. If a seller actually had direct knowledge of a registered sex offender in the neighborhood, this would be disclosed. (https://www.meganslaw.ca.gov/)
The property condition disclosure, along with others, must be given to the potential buyer. I have these filled out in advance for buyer review before the final purchase agreement is signed. Otherwise, the buyer has the option to terminate the contract within 3 days of receiving the disclosure. To fill out the forms correctly requires time and thought. In other words, it’s tedious work. Sellers are encouraged to fill out disclosures as soon as possible. However, it is important to fill out the property condition disclosure completely and accurately.
In California, home sellers are also required to report a death that occurred in the house within the past 3 years that was not AIDS-related. California law also requires emotional defect disclosures, but only if it has occurred in the past five years. In other words, an alleged haunting that occurred ten years ago need not be disclosed, but if residents report ghostly sightings at every full moon, it must be disclosed.
Completed disclosures help to offer some protection from disclosure related lawsuits, although, a lawsuit can happen if you have done everything correctly.
Some sellers ask questions about how much information to include on their property condition disclosure forms. They sometimes fear that the truth will scare buyers away. Perhaps in some cases, with some buyers, it will. But, it’s far better to wait for a different buyer than to end up in court later.
One well-known California couple tried to hide the fact that a large skylight leaked. They were “lucky” in that no agents or buyers came by on rainy days. They weren’t so lucky when the ensuing lawsuit cost them more than a million dollars. Their excuse for failing to disclose the leak was that it hadn’t been disclosed to them when they purchased the house.
A couple in another state falsified the results of a septic system inspection, saying it was in fine condition when, in fact, the inspector said it was failing. In the resultant lawsuit, the buyers were awarded triple damages. When you have disclosed every known defect about your house, you have done your best to be protected from lawsuits regarding those defects. This is because the buyers must attest to the fact that they have read your report.
If they skimmed the report and missed something, or if they read it, didn’t understand, and didn’t seek an explanation, it becomes their problem – not yours. If there’s a question on the form and you honestly don’t know the answer, you can say you don’t know. However, if you do know and choose to say you don’t, beware. There will be a neighbor somewhere who knows that you knew, and they’ll tell someone.
Even if you are not required to disclose a fact, such as a violent crime that occurred many years ago, you may be required to respond if asked directly. You can check with your company Attorney to confirm how to best handle these particular types of questions. However, saying “no” if you know the answer to be “yes” could ultimately lead you into court. I am a declared a “Probate Expert” to provide testimony in the Sacramento Superior Court, Probate Division.
I do sell homicide and suicide properties and have over the last 12 years. I have never sold a haunted house to the best of my knowledge. However, a Realtor who represented a buyer on a Probate listing reported to me, that she was in conversation with the decedent and that he had jumped up into her truck and had a conversation with her. My reply, “I have no special abilities like yours I just sell the real estate.”
The same rules hold true for your Realtor ®. He or she must disclose all known facts that would influence the price or the sale of a home. Realtors also fill out an Agent Visual Inspection Disclosure (AVID) form. This is a visual disclosure. As Realtors we do not craw under foundations or go up into attics as we are not certified to do inspections. This form is for defects or items of interest such as power lines and or telephone wires across the back yard. Though these lines are not a defect they can be a concern for some buyers.
If you want to hire Realtors who make sure all disclosures are completed and in your file, call Weintraub & Wallace Realtors with RE/MAX Gold, at 916-233-6759
— JaCi Wallace
