PROBATE – What To Do With An Inherited House?

PROBATE – What happens if your parents pass away and leave behind a piece of real estate to you or to you and your siblings? What if you are all scattered between Hawaii and the mainland? It can be tough enough just dealing with the loss of one’s parents, but there’s no escaping the tough task ahead – dealing with a house. Handling your own affairs takes every bit of energy you have and now you are faced with your parents’ estate. There are funeral arrangements to be made and likely personal belongings to be dispersed between yourself and other family members. This is a very stressful time for you and your loved ones. As you sort through the memories one photo album at a time, you realize your biggest stress is about to come when you are faced with the question:

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“WHAT DO WE DO WITH THE HOUSE?”

Here is where probate begins. The probate process transfers a person’s estate in a supervised manner. It acts as a script that guides the transfer into an orderly fashion according to rules governed by a probate court. Probate applies whether a person had or did not have a will. A valid will left by your mother, father or both determines how and to whom the estate will be transferred. If there was no will, the estate will still go to probate and the laws in that state (ex. Hawaii) will govern how the estate is transferred. Most probate courts follow the same process no matter what state the probate ends up in. The initial step is swearing in your personal representative. This is usually outlined in the will but if not the court generally appoints a child or children. The court also notifies any heirs, the public and any creditors that the person has died. Property will then be inventoried and the estate will be distributed which will include paying any bills and/or taxes left behind.

The process is tiring and stressful, but you’ve still yet to deal with the house. You’re aware of the current real estate market and know it could be hard to sell quickly. With short sales and foreclosures flooding the market, you have tough competition for the few buyers out there. The endless paperwork, consultations with realtor agents and the probability of an overpriced listing delaying the sale won’t help your situation. All of these conditions leave you in a tailspin of worrying how you will care for a home several miles away or even just right around the corner. With maintenance fees, general upkeep, taxes, insurance and other expenses, the cost adds up over the months or years it could take to sell the house.

There are other options available to you that are usually more prompt and efficient. Speaking to a real estate investor could be the exact solution you need. A professional investor will pay cash, will take it in its current condition (no repairs needed) and can likely close on the purchase in 30 days or less. Usually, when an investor purchases a house, a substantial discount is applied because the investor is looking for some profit to justify the purchase. In the long run, however, even after offering a discount to an investor, you are saving thousands of dollars of additional monthly mortgage payments if it were to sit on the MLS instead listed with an agent. Realistically, you are also saving 6% in realtor commission fees because the investor will want to buy your house directly. You also may need to liquidate the property quickly to cover the estate taxes, which can be significant.

Primary Advantages of Selling to a Professional Real Estate Investor:

1. Selling the house quickly instead of incurring more debt if it were to sit on the market
2. Not having to make any repairs on the property, selling it ‘As Is’
3. Saving 6% on the purchase price because the investor will buy the house directly with no agent involvement
4. Quick closing to pay off any estate taxes

But in the end the greatest result for you is relieving yourself from the heartache, burden and stress associated with losing a loved one and having to handle the affairs as a result.

If you have a property in Hawaii probate or you inherited a house that you’d rather cash out, or if you just want a free quote and consultation, then just fill out the form on the right and we’ll be in touch immediately. Or you can always all us direct at 808-377-4379.