Before the sales begin, the court determines if the probate is formal or informal. These two types of processes indicate whether the court would be involved in every step of the sales or not.

Formal Probate Sale

The formal probate process is lengthy and complicated because of court involvement. The probate court should approve every transaction related to the house and the executor needs an attorney for guidance.

Here are 4 steps to help you get started:

1. Appointment of Executor

A vital part of selling a probate house in Maryland is appointing an executor or a personal representative. If the deceased individual indicated an executor on his will, the court would honor this.

Meanwhile, if an executor is not appointed, the court will assign someone as an administrator to process the documents. This person is preferably the next of kin. 

The task of an executor is difficult. To illustrate, the executor would oversee the appraisal, marketing, sales of the house, paying probate fees, dividing proceeds, etc. 

2. Real Estate Appraisal

Once appointed, the executor would have to get the house appraised so it can be listed for sale in Maryland. 

The appraiser must really be a professional because the process is stringent. This is to be expected since the appraisal would serve as the basis of the property’s asking price.

Moreover, most probate courts require the property to be sold for at least 90% of its appraised value.

3. Petition to Begin the Sale and Listing

When the home’s appraisal is ready, the executor or personal representative should go to the probate court and file an intention to sell the house and other assets.

The intention filed should include the home’s appraisal and the method chosen to sell the property, for instance, auction or market sale, through the help of agents.

Once the petition is approved, the executor can start listing the house for sale in Maryland. The property can be sold through distressed property buyers, for sale by the owner or independently, or a realtor who is an expert in probate sales.

When a buyer takes interest, they should be informed by the executor that the sale will only be completed after the court’s confirmation.

A hearing would take place before the approval of the sale. But before the schedule of the hearing, the probate house can still be advertised, mentioning the buyer’s offer. This would allow more potential buyers to bid during the court hearing.

4. Court Hearing and Approval of Sale

During the court hearing, when some more potential buyers show up to bid, the probate court will take charge. They will facilitate the bidding and overbidding.

Since the court will handle this part of the sale in Maryland, expect that there would be strict rules.

After a buyer/bidder has won the bidding, the executor can petition the court to authorize the sale of the property. 

After a buyer/bidder has won the bidding, the executor can petition the court to authorize the sale of the property. 

The beneficiaries or heirs of the sale should also be notified regarding the sale and they should give their consent. If anyone of the heirs object, the sale may not push through.

Once all the documents have been prepared, the court will review them and release an order to approve the sale.

Informal Probate Process

The informal probate sale process is less stringent than the formal probate sale because there is limited court involvement. This is possible if the house in question is under the joint tenancy and there are rights to survivorship.

1. Appointment of Executor

Similar to the formal probate sale process, an executor or personal representative would be appointed to take charge of the transactions. If the executor is not indicated, the court will appoint an administrator. The executor would no longer need the help of an attorney in most cases.

2. Filing of Probate Forms

The executor should complete and file all the necessary probate forms with the probate court. These forms are often different from the ones filed during formal probate sales in Maryland.

3. Issuance of Letters of Testamentary

Right after the primary forms are filed, the court would release Letters of Testamentary. These are documents that give the executor the right to manage the assets of the deceased, including the house.

The executor would still need to fill out a lot of forms and file them with the probate court after these documents are released.

4. Listing the House for Sale in Maryland

Once the court permits the sale of the house in Maryland, the executor can then list it or sell it however he wants as long as it is legal. The executor can seek the help of agents or find a company that buys probate houses.

There would be no bidding involved because the court would no longer interfere with the transaction. However, the beneficiaries or the parties involved should all agree before the sale can proceed.

They already know what strategies to use to sell a house under probate and how to price the property right. They also know who to market the property to in Maryland, so you’ll get a competitive offer.

Real Estate Investor

Real estate investors buy and renovate properties in Maryland so they can convert them into rentals or fix them up to sell on the market. Investors may secure a bank loan or mortgage for a probate property if they’re really interested in it. They may also pay in cash if they have enough funds.

Cash Home Buyer

A cash home buyer in Maryland is pretty similar to a real estate investor. However, they’re more ideal because they can offer cash for the probate property right away.

They don’t take loans or mortgages to pay for the property. They don’t require any repairs. Also, a trusted cash buyer will not withdraw from the sale once they have agreed with the executor, so you get your money with no uncertainties.