Judges Determining Sale Price?

Question

I have a lead on an inherited property, but the lady said the judge won't allow her to come down on the asking price.  Has anyone ever experienced this?

Account Closed · Answer

It's not the judge that determines asking price, but rather the state's court system and probate law.  If the property is owned by an estate that is being probated, it's been appraised by a court-appointed probate referee or appraiser.  That appraiser was required to determine the value of the property at the date of death.

Do you know if the property must be sold out of probate court in order to satisfy debts?  If so, that's why the heir is saying the judge won't allow her to sell for less.  Most courts depend on the probate appraisal for value determination and will allow the executor to sell for that amount, or perhaps 95% of that amount.  That being said, I've submitted lower offers and gotten them accepted.  But it's long and drawn out because the probate referee is asked to do a re-appraisal based on condition, current market conditions, etc.

What's the status of the property right now?  Does it need to be sold to satisfy debts or will the heirs be inheriting it?

Phillip Dwyer · Answer

Look up discussions on the probate process.  Basically when someone dies, their stuff goes through the probate process in order to make sure creditors and heirs are accounted for. This process can be avoided with proper estate planning.  I'm not sure how it works in your state, but real estate is usually appraised with an effective date being the date of death. The appraisal is then used by the courts when looking at offers.

Account Closed · Answer

You can and should make an offer that works for you, regardless of the probate appraisal.  The executor will need to ask her attorney what the process is for submitting and getting your offer accepted.  You're about to learn a lot about probates for your area.  Congrats!

John Stevenson · Answer

Estates that are in probate use real estate appraisals to set market value.  Once an appraisal is part of the estate file, it can be a difficult matter to get them to budge.

@K. Marie Poe makes a good point. All you can do is prove that the purchase price needs to be less and make a solid offer. If they cannot find a better one within a reasonable amount of time, they will be "forced" to consider what they have.

Good luck.

Dale Osborn · Answer

As long as you can justify your list of what it would take to make it a presentable home - then use it along with a lower offer. All they can do is say no. They may even come back with a counter that gets closer to your ball park figure.

Reggie Youngblood · Answer

She told me it has to be sold for the kids of the deceased trust fund.  If I have my contractor go estimate repairs, can she take his estimate to the courts and get the price lowered? K. Marie Poe

Reggie Youngblood · Answer

Thanks Phillip Dwyer

Judges Determining Sale Price?

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