Navigating probate real estate in Michigan is unfamiliar territory for most families. When you are grieving the loss of a loved one and suddenly thrust into the role of managing their estate, it is easy to make costly mistakes. We have seen families lose tens of thousands of dollars because of avoidable errors. Here are the most common probate real estate mistakes and how to steer clear of them.
Mistake 1: Waiting Too Long to Start the Probate Process
Many families delay filing for probate because they are overwhelmed by grief, unsure of the process, or hoping the situation will resolve itself. But every month you wait, the estate continues to pay property taxes, insurance, mortgage payments, and maintenance costs on the deceased person’s home. Starting the probate process promptly preserves the estate’s value and gets you closer to being able to sell the property and distribute assets to heirs.
Mistake 2: Spending Too Much on Repairs Before Selling
Some personal representatives pour money into fixing up the probate property thinking they will get a better price on the open market. While this can sometimes make sense, it often does not — especially when the repairs are coming out of the estate’s limited funds. Before spending money on renovations, get a cash offer from Offer Now Michigan to see what the property is worth as-is. You might be surprised to find that the as-is offer, combined with the savings on repairs and commissions, puts more money in the heirs’ pockets.
Mistake 3: Not Securing the Property
A vacant probate property is vulnerable to break-ins, vandalism, squatters, and weather damage. Failing to secure the property and maintain basic utilities like heat in the winter can result in catastrophic damage. The personal representative has a fiduciary duty to protect the estate’s assets, and a damaged property hurts everyone.
Mistake 4: Choosing the Wrong Buyer
Accepting an offer from a traditional buyer who is relying on mortgage financing introduces risk into the transaction. If their financing falls through — which happens more often than you might think — you are back to square one, having wasted weeks or months. A cash buyer like Offer Now Michigan eliminates this risk entirely. Our offers are not contingent on financing, inspections, or appraisals.
Mistake 5: Not Understanding Michigan Probate Law
Michigan has specific rules about how probate property can be sold, what notices must be given to creditors and heirs, and when court approval is required. Failing to follow these rules can delay the sale or even void it entirely. Work with a knowledgeable probate attorney and a cash buyer who understands the Michigan probate process. At Offer Now Michigan, we have been through this process many times and we know how to navigate it smoothly. Call us at 810-425-5961 to get started.