Probate sale - questions to ask

Justonemorecupoftea

We've found a property to view and a little research suggests it's a probate sale (although it doesn't say this on the listing, nor does it say "chain free" but it has been very poorly marketed generally).

It's been on the market since Feb 2020, we think the owner died in October 2020 and was remarketed at the start of April this year.

What questions should we be asking the estate agent?

Obviously confirming that it is a probate property (I assume they have to tell us?)

I've also read about "granting" probate, is this something that will have been done before it goes to market?

Finally - how does negotiating work in this situation? Is the price fixed as they will have paid IHT on it already (or does that come later)? Or can we still offer lower?

Based on the photos we probably want to offer about 8% below asking. Not much comes up for sale in the village it's in, so it's hard to compare, but in similar villages (size/amenities/distance from town) a similar property would probably be snapped up very quickly for about 12-15% cheaper

I guess it could be any beneficiaries are just willing to hold on for the right offer, but I suspect that this agent just isn't getting people through the door, so hoping they'll be open to an offer!

Thanks!

AnotherJoe

Justonemorecupoftea said:

We've found a property to view and a little research suggests it's a probate sale (although it doesn't say this on the listing, nor does it say "chain free" but it has been very poorly marketed generally).

It's been on the market since Feb 2020, we think the owner died in October 2020 and was remarketed at the start of April this year.

What questions should we be asking the estate agent?

With respect to what? The probate? The right Q would be "is this a probate property and has it been granted?"

Obviously confirming that it is a probate property (I assume they have to tell us?)

Sorry, but why would they not?

I've also read about "granting" probate, is this something that will have been done before it goes to market?

No, it needs to be done before you can buy it. But it can be marketed beforehand. Given the time thats passed its likely its been granted but obviously ask.

Finally - how does negotiating work in this situation? Is the price fixed as they will have paid IHT on it already (or does that come later)? Or can we still offer lower?

No different to any other property, of course you can negotiate. What happened during probate and what IHT if any there was and all that stuff is (a) nothing to do with you and (b) irrelevant to the price.

Based on the photos we probably want to offer about 8% below asking. Not much comes up for sale in the village it's in, so it's hard to compare, but in similar villages (size/amenities/distance from town) a similar property would probably be snapped up very quickly for about 12-15% cheaper

I guess it could be any beneficiaries are just willing to hold on for the right offer, but I suspect that this agent just isn't getting people through the door, so hoping they'll be open to an offer!

Thanks!

See answers in bold above.

Obviously you wont know the attitude of the sellers until you've put an offer in. It can go three ways. Sometimes theres a holdout beneficiary who will  demand to hold our for absolute top dollar and may be insistent on even an unrealistic price, or they may just want to get rid given itsa windfall anyway and value is diminishing as it falls into disrepair and ongoing costs mount, or who knows maybe you'll have a reasonable seller with a realistic attitude.

Good luck.

AdrianC

Justonemorecupoftea said:

We've found a property to view and a little research suggests it's a probate sale (although it doesn't say this on the listing, nor does it say "chain free" but it has been very poorly marketed generally).

It's been on the market since Feb 2020, we think the owner died in October 2020 and was remarketed at the start of April this year.

What questions should we be asking the estate agent?

Obviously confirming that it is a probate property (I assume they have to tell us?)

I've also read about "granting" probate, is this something that will have been done before it goes to market?

Finally - how does negotiating work in this situation? Is the price fixed as they will have paid IHT on it already (or does that come later)? Or can we still offer lower?

Based on the photos we probably want to offer about 8% below asking. Not much comes up for sale in the village it's in, so it's hard to compare, but in similar villages (size/amenities/distance from town) a similar property would probably be snapped up very quickly for about 12-15% cheaper

I guess it could be any beneficiaries are just willing to hold on for the right offer, but I suspect that this agent just isn't getting people through the door, so hoping they'll be open to an offer!

You're overthinking it.

"Probate" is one step in tying up a dead person's estate. It's the official "Yes, you're the person in charge of this estate."
https://www.gov.uk/applying-for-probate

The house is being sold by the executor(s) of that estate. The executor may be a beneficiary, but not necessarily.

Yes, it can be marketed before probate's granted (perhaps it was being marketed before they even died...), but the sale can't (usually) complete before it's granted.

That's it.

Nothing else is different to any other house sale.

Justonemorecupoftea

Thanks both! Overthinking is my default setting, so it's good to hear that it isn't likely to be that different from our side of things than any other house purchase!

@AnotherJoe was worried that EAs may not say if it's probate in case it puts people off (too much time on forums where new situations come to light during the sale!)

UnderOffer

Definitely ask if probate has been granted. If you know name etc., you could search here https://www.gov.uk/search-will-probate to see status. If granted it will be listed. 

rose_T

We found a property in July last year 2020 and it has taken 9mths for the executor’s  4 of them that don’t talk to each other! To actually get confirmation to sell the property. 

They wanted home report value and wouldn’t go any lower. Hopefully we will get the keys on the 1st July. 

That will be a year from start of discussions until exchange. 

The property was bought of market so no estate agents were involved. 

I would definitely ask if probate has been granted ( confirmation here in Scotland)  that I feel is the biggest hurdle when buying a probate property 

TBagpuss

On a probate sale, as the previous occupant has died, there often isn't anyone who can answer questions about the property, so you need to be even more careful than usual about getting  surveys, checks etc. It may have been empty for a while.

You can negotiate on price but depending on circumstances there may be more people involved in the decision  - the executors may feel they need to discuss offers with the beneficiaries, for instance,.

If the house has not already been cleared you may find that anything in the house at viewing is to be left .