Dealing with an inherited property in probate? You can sell through cash buyers for quick closings, work with specialized real estate agents, or explore direct transfers. Each method offers unique benefits depending on your timeline and needs.
Inheriting a property can be both a blessing and a burden. When a loved one passes away and leaves you a house through their will, you're suddenly faced with a complex legal process called probate and a property that may not fit your current life situation. The emotional weight of dealing with a family home while grieving can make the experience even more challenging.
Probate is simply the legal process that verifies a deceased person's will and distributes their assets according to their wishes. If there's no will, state law determines how assets are distributed. During probate, the court appoints an executor (usually named in the will) or administrator to manage the estate, including any real estate properties.
"For heirs, this means you can't immediately sell an inherited property until the probate court grants authority to the executor," explains Braddock Investment Group, a real estate firm specializing in probate properties in Chicago. "The executor is responsible for managing the property until the probate process concludes and must follow specific legal requirements when selling."
In Illinois and specifically Chicago, the probate process typically takes six to nine months to complete, though complex estates can take up to two years. This timeline includes verifying the will, inventorying assets, paying debts and taxes, and finally distributing remaining assets to beneficiaries.
Selling a house in probate requires court approval and adherence to specific legal procedures. The executor must petition the court for permission to sell, and the sale must generally benefit the estate or be necessary to pay debts.
Additionally, all interested parties and heirs must be notified about the potential sale. If multiple heirs are involved, they all must agree to the sale before proceeding. "This can sometimes create complications if there are disagreements about whether to sell or how to price the property," says Braddock Investment Group.
One of the simplest ways to sell an inherited property in probate is through a cash buyer or real estate investor. This approach offers several advantages that can significantly reduce the stress of the probate property sale process.
"Cash buyers—like our firm—purchase properties in their current condition, meaning you won't need to invest in repairs, renovations, or even cleaning," says Braddock Investment Group. "This 'as-is' purchase is particularly valuable for inherited properties that may have been vacant for some time or need significant updates."
The timeline for cash sales is dramatically shorter than traditional real estate transactions. While a conventional sale might take 3–6 months after probate approval, cash buyers can often close in as little as 7–14 days once the court gives permission to sell.
Another significant benefit is avoiding real estate commissions and many closing costs. Traditional agents charge 5–6% of the sale price, which can amount to thousands of dollars. Cash buyers typically cover closing costs and don't charge commissions, allowing you to keep more of the proceeds.
If maximizing the sale price is your priority and you're willing to wait longer, working with a real estate agent who specializes in probate properties might be your best option.
A probate-experienced agent brings valuable expertise to the table. They understand the court approval process, the timeline constraints, and how to market a property that's being sold through probate. This specialized knowledge helps manage the complexities of these sales.
The primary advantage of this approach is professional marketing reach. Real estate agents have access to the Multiple Listing Service (MLS) and other marketing channels that can expose your property to the widest possible audience of qualified buyers.
While this option typically yields a higher sale price than a cash sale, it comes with trade-offs. "The timeline is significantly longer, often taking 3-6 months after probate approval," says Braddock Investment Group. "The seller also needs to pay the agent's commission and possibly make some improvements to make the property more marketable."
The third option for handling an inherited property involves estate planning tools that can help avoid the full probate process altogether, potentially saving significant time and money.
One effective method is using a living trust. If the deceased placed the property in a living trust before passing away, it can be transferred to beneficiaries without going through probate. This dramatically simplifies the process and allows for a much quicker sale if desired.
Another approach is transferring property to heirs before selling. Once the property is fully transferred to the heirs through probate, they can sell it as a standard real estate transaction without court oversight. This removes some of the restrictions of probate sales.
Joint ownership options can also simplify transitions. If the property was already held in joint tenancy with right of survivorship, it automatically passes to the surviving owner without going through probate.
Now that you understand the three main approaches to selling an inherited property in probate, how do you decide which one is right for your situation? The answer depends on several factors unique to your circumstances.
Braddock Investment Group advises those looking to dispose of probate properties to consider their timeline needs first. "If you're facing financial pressure or simply want to resolve the situation quickly, a cash buyer might be the best option," it says.
Those with enough bandwidth to handle repairs, staging, and listing may opt to go the traditional route of working with a broker. "By understanding your capabilities and options, you can handle this process successfully and move forward with confidence," Braddock Investment Group adds.
