Selling A House in Probate for Cash Chicago

Selling a House in Probate for Cash Chicago

Selling a house in probate for cash Chicago or anywhere in Illinois is not easy or straightforward. Undergoing the probate process and figuring out what to do with inherited property can be like getting a tooth pulled with a spoon. There are so many legal processes and proverbial hoops that the property has to go through before it can even be listed as a probate sale. Even after you succeed in selling a house in probate for cash in Chicago, there is still paperwork to accomplish and there are debts to pay.

Still, if you know how the comprehensive steps to selling a house in probate, it will go much smoother.

How Do You Go About Selling a House in Probate in Illinois?

There are four steps to selling a probate property.

1. Appointment of an executor (or administrator)
2. Getting the property appraised
3. Petitioning the court to start the sale and listing the property
4. Asking the court to approve the sale

Word of warning: The probate sale process can be long and tumultuous, depending on your particular situation, and there’s not always gold at the end of that rainbow. If the owner who’s passed away has a lot of debts, those will have to be taken care of first before distribution to the beneficiaries. The more debt, obviously, the less that’s available to the family later.

If you’re named the executor or just a family member who stands to benefit, this guide can walk you through the probate process.

This detailed list outlines what you should know about selling a house in probate for cash Chicago from start to finish.

We cover the steps you need to follow, from how you start, to what your options are with property repairs and getting your probate sale (finally, at last) approved.

When it comes to selling a probate property, state processes are not the same. It differs state to state, so be sure to get professional assistance to determine the specific information relevant where you live or more specifically, where the property is located. If the subject property is in Illinois, you’re in the right spot!

More specifically, in Illinois, probate cases are always handled by the Circuit Court in the county where the deceased person was living.

Probate Property Illinois

What is a probate property Illinois? Probate property is any asset (but often a house) left by a person who died that now has to go through the probate process. This Illinois property is either distributed through a will or without a will. This depends on whether the owner died in a term called intestate.

While we define “probate property” here specifically as a probate house, the term actually encompasses other assets with monetary value, like cars, your great-Aunt’s heirloom jewelry or even stocks they held. If you have anything that could sell on Antiques Roadshow, it’s an asset that will fall under the probate property umbrella.

Can You Sell a House While In Probate Illinois?

The short and simple answer is Yes! A house can absolutely be sold while in the probate process. Of course, you can sell a probate house like any traditional house (or condo, townhome, etc.), whether that’s with a real estate agent by putting it on the MLS, or a cash buyer or investor if you need a faster and easier probate sale.

Cold hard truth here: selling a probate property is not always a simple progression. It often gets complicated quickly. First off, the proceeds from selling the assets are sometimes not distributed as your family might expect they will be. This often happens when the deceased family member and owner owes money to creditors and/or has a lot of debt that comes as a surprise to those closest to them (or those not close at all but heirs nonetheless.) In addition, things like insurance fees, expenses from the probate process, and any other debts attached to the estate can add up and will be deducted from the proceeds of the probate sale before any recognized heirs get their share of the money.

How Does a Probate Sale Work Illinois?

While a probate sale can be somewhat similar to selling traditional property, as we mentioned, it comes with more complications. Frequently, the process can be delayed by the court because it’s involved in approving a probate sale. When the sale is pushed back a time or two, or six or ten, it could lengthen from months to sometimes even years. (Oversharing here, but one of my family members has one asset that’s been in probate purgatory for 25 years due to family members not signing off on the sale.) First, the court will decide whether the probate case is formal or informal, which will determine how involved the court will be.

What is a Formal Probate Sale?

True to its name, the formal probate process is the longer and more complex of the two types of cases, simply because of the depth of involvement of the court. The executor of the estate will need an attorney to guide you through each step and ensure that the probate court approves every transaction related to the estate. Skip a step and you’ll lengthen the process.

If you’re here, you want details.

Here are 5 steps that typically happen in a formal probate sale.

If you’re a Cliffs’ Notes Person, here’s the simple breakdown of the Steps.

• The executor will file probate and the will with the court. The court either accepts this person as the executor or will appoint someone else, and providing them with documents that give them permission to act on the estate’s behalf.
• The executor gives notice to the heirs of the estate and to any and all creditors. This includes publishing notices in the local newspaper.
• The executor has to find and take inventory of all assets. Some may need to be appraised.
• The executor must pay taxes, pay all creditors, and file tax returns, after which they file a summary accounting statement showing allocation of funds.
• The balance of the estate is then distributed to the heirs and probate is closed.

It’s hard to know what to do with inherited property, but hopefully these steps helped. Reach out to us today to get started.

If you’re more of a details kind of person, we go more in-depth here.

1. Appointing an Executor

The first step is the appointment of an executor and the court’s recognition of this person. If the person whose property is in probate died with a will in place, usually this will already be done. Then the court honors this legal selection or designation as executor. On the other hand, if there is no named executor or will, things proceed differently. The judge in charge of your probate case will assign or decide on an administrator. This person is usually a close family member named to be in charge of the process and the documentation.

2. Real Estate Appraisal

The court will require proof that the house value is what you think it is. This means it will have to be professionally appraised to determine what the property is worth. That process can become stressful and emotional because of family members’ connection (or lack thereof) to the home in question. An appraisal by a licensed professional is critical because it takes emotion out of the evaluation process and boils the value down to hard numbers based on similar properties in the neighborhood. Then, that appraisal sets the property’s asking price as you put it up for sale.

3. Petition to Begin the Sale and Listing

After the appraisal, the executor or named personal representative will file an intention to sell the house and other assets with the probate court. The intention will include details including things like how you plan to sell the property, which can be anything from paying to have an agent list it on the MLS, to selling it at auction, or to cash buyers or other real estate investors.

Any way you look at it, the court will still have to approve the petition to begin the sale.

Just remember that when a prospective buyer puts in an offer, the executor needs to inform the interested party that the sale must be affirmed by the court before it can go through.  

Then, a hearing will take place before this approval.

4. Court Hearing and Approval of Sale

As part of the last step, the probate court will oversee the actual sale. After a buyer has put in their highest or best bid, the executor will petition for sale approval.

This is another time when the process can get sticky. This is when the beneficiaries are required to be given notice, and then they must give their consent to the probate sale. Typically, the higher the number of heirs, or the more contentious the relationship, the more likely objections will pop up and leave the process in limbo. However, many times this doesn’t happen.

If no one raises their voice to object, the documents will then be prepared, the court reviews them, and then will hand down a sale order.

Informal Probate Process

The informal probate sale process is available for certain estates, but if you’re here, it likely doesn’t apply for your circumstance. An estate can qualify for informal probate if the assets are valued at less than $100,000.

In that case, you can utilize Small Estate Affidavits, but it’s important to note that the capped amount cannot include any real estate (755 Ill. Compiled Stat. 5/25-1)

3 Ways to Sell a Probate Property Illinois

You’ve gone through the steps and now you’re ready to sell. Once the Illinois court approves the petition to sell the probate house, the executor needs to start marketing it. If you’re looking to speed up the process, we have answers! Here are a few ways to sell a house going through probate faster:

Probate Real Estate Agents

Working with realtors specializing in probate properties can help, but it will cost you an average of 12 percent of your sale price in commissions, closing costs, and fees. It will also take time to get the house ready for a traditional sale, and you will be responsible for the taxes, utilities, and maintenance while it’s on the market.

Real Estate Investor

A real estate investor wants to look for fixer-upper houses or houses that could use some updating in order to renovate or remodel them (and build equity). They’re buying properties to make into rentals or to fix and flip them. Investors have a variety of ways to pay for the property, whether that’s by securing a traditional mortgage, a hard money loan or commercial loan, or sometimes they simply pay cash.  

Cash Home Buyer

Some real estate investors are cash home buyers, but this added distinction means they can offer cash for the probate property without delays. There’s no waiting for a loan to go through. That’s because they don’t need a mortgage, they don’t want you to repair or upgrade anything, and they can close quickly on your timeline.

How Long Does a Probate Sale Take in Illinois?

Every case is different, but on average, probate sales in Illinois last 6 to 12 months. When going through formal probate, creditors have to be given time to present their claims or debts. The executor needs time to take inventory of all assets, and this is where a paper trail for some goes cold.  Then, if there are any family disputes over who gets what, those must be resolved before the probate process can be closed.

Other delays can be caused just through getting on a schedule for probate court, or through ineffective marketing when putting the house up for sale. If the executor lists the house for sale but doesn’t put money behind publicizing it, it can sit on the market for a while. If your property needs modernizing or repairs, it can sit for a while, racking up property taxes, utility bills and maintenance costs with no end in sight.

All in all, it’s safest to expect a probate sale to take longer than traditional house sales. But, finding a reputable cash buyer is a great way to speed that up.

What if the Probate Property Needs Repairs Illinois?

It’s rare for a probate property to be in perfect, sale-ready condition. Usually owners are older, don’t have the time, patience, energy, or money to put into repairs. You and the other relatives can pay to modernize the home so it can be marketed to get top dollar.

If the heirs don’t agree to pay for the repairs or simply don’t have the money, the executor can find a company that buys houses for cash. Cash buying house companies like Olson Home Buyers don’t require repairs, updates, or cleaning before the probate sale, even for hoarder homes.

Final Thoughts: Selling a Probate Property Illinois

As we mentioned, and you’ve probably gathered if you’ve read this far, an executor’s job is often a thankless one. It’s time-sucking and put simply, a lot of work. The task list includes acquiring an appraisal, getting the property ready for sale, marketing the property, overseeing the sale of the house, making sure probate fees are paid, and then finally, dividing the proceeds among any heirs.  

In conclusion, you came here searching for questions like “Can a house be sold while in probate?” and we hope those are answered here.

We buy houses, so we are not attorneys but we work with many. If you need legal advice on probate in Illinois, consult a good attorney versed in probate law.

If selling your house in probate to a cash buyer sounds like the best way to go for you, contact us at Olson Home Buyers. We offer competitive offers and there’s no cleaning or repairs.

1. Verify the Executor of the Estate

The first step in selling a house in probate Illinois is verifying who has been appointed as the executor or personal representative of the estate. This individual is responsible for managing the probate process, settling the deceased’s debts, and distributing the remaining assets to the heirs.

2. Inventory the Estate

To “inventory” simply means to make a list of everything of value. The executor must inventory all the estate’s assets, including the property. This inventory will be used to settle any debts and calculate any taxes due. The court will also need an inventory before approving the property’s sale.

3. Obtain a Probate Appraisal

Before you can sell the house in probate, you need to know its fair market value. Hire a professional real estate appraiser experienced in probate valuations to ensure a precise evaluation. In some cases, the court may require you to hire an appraiser they approve.

4. Pay Off Any Debts

All creditors must be paid before any assets can be distributed to the heirs. If there are insufficient cash assets to cover the debts, you may need to sell the probate property to cover these costs.

5. Market and Sell the Probate Property

Once the court approves, you can sell the probate property. This process is typically handled like any other home sale in Illinois, but the offer must be approved by the court. In some cases, an auction may be held where potential buyers can bid on the property.

6. Finalize the Sale

After the court approves the offer, you can proceed with the sale. The buyer will pay for the probate property, and the proceeds will go into the estate. These funds will then be distributed according to the will or state law.

Expert Tips for Selling a House in Probate Illinois

1. Seek Legal Advice

Navigating probate can be complex, and each state has different laws. It’s essential to seek advice from an attorney experienced in probate law where you live. They can guide you through the process and ensure all legal requirements are met.

2. Keep All Parties Informed

Communication is key in a probate sale. Keep all heirs and beneficiaries informed throughout the process. This open communication can prevent disputes and ensure everyone is on the same page.

3. Fix What Needs Fixing

If you want to get the highest possible offer on your home, you will need to do maintenance, repairs and possibly renovations. Many home buyers expect a turnkey home and the latest of everything if you want the most money for your property. Things like broken HVAC, old water heaters, and outdated plumbing and electric are very expensive to update to today’s codes and standards. You might think buyers won’t notice, but many cities, villages, and municipalities have pre- or post- sale inspections by law and will require these upgrades. However, if you’re down and dejected at this point, don’t worry! If you sell to a cash buyer, it is often on them to make these repairs, bypassing the hassle for you. 

4. Invest in Home Staging

Just like in traditional real estate transactions, the appearance of the home can greatly influence its selling price. If the home is dated or in poor condition, investing in staging or minor renovations could increase its value. A word of caution, though… staging your home can cost $3,000 to $10,000. If you’d like to keep as much money as possible in your pocket…..

5. Save Big with a Cash Buyer

Selling a house in probate can be a lengthy process. If you need to sell quickly, consider selling to a cash buyer like Olson Home Buyers. Cash buyers can often close quickly, which can be beneficial if you need funds to settle the estate’s debts.

Realtor fees and associated closing costs (title insurance, survey, inspection, etc.) all add up to about 12 percent of your sale price. If you sell to a cash buyer, that money stays with you. 

Conclusion

Inheriting a home can be a bittersweet experience, and the idea of selling it can seem overwhelming, particularly if the house is in probate in Illinois. However, with understanding, patience, and professional advice, it can be an easier process than you imagine.

Through OlsonHomeBuyers.com and RenewalsInRealEstate.com, we provide solutions tailored to your unique needs. We take the time to understand your situation and provide a compassionate, efficient home cash buying service to help you through this challenging time of selling a house in probate for cash Chicago.

Remember, you are not alone in this journey. Don’t hesitate to reach out for professional advice when you need it – it’s a crucial step in ensuring that the probate process in Illinois goes smoothly and that your loved one’s legacy is handled with the care and respect it deserves.

Selling your home for cash should be faster and easier, and end with you putting money in your pocket.

Why Choose Olson Home Buyers? We buy houses directly from Chicagoland homeowners for a fair cash price.

We buy houses in Chicago “As-Is“.

That means you don’t have to update or repair anything.

No time or interest in cleaning? No problem!

If you’re looking to sell your house fast, we can help. We are trusted cash home buyers in Chicagoland and we put in straightforward offers with no hidden fees.

We Offer an Easy Solution.

No Realtors, No Fees, No Commissions. Sell Fast & Hassle Free, Without Doing Any Renovations!

Cash for Houses in Any Home Situation

Are you worried we won’t be able to work with your situation? We can, whether you’re avoiding foreclosure, or you’re selling a house in probate for cash Chicago

We welcome owners who have inherited an unwanted or probate property, are behind on payments, and more. Even if the house needs repairs that you can’t pay for, is fire damaged, or has mold, Olson Home Buyers can help.

Put an end to all the stress and hassle of selling a house. Save time and money by selling directly to us.

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