If you have been named executor of a parent's estate, the house is usually the largest asset and the hardest part. Here is the order things happen in, what you can do now, and what has to wait for the court.
The court sets the pace of an estate sale, not the market. Getting the order right is what keeps the house from sitting empty longer than it has to.
Before anything legal happens, protect the asset. Change or collect the keys, call the homeowner's insurance carrier and tell them the owner has passed and the house may be vacant, since many policies limit coverage on an empty house. Keep the heat on and the utilities paid. In Putnam that also means keeping the oil tank filled, the well pump powered and the pipes protected through winter. A burst pipe in an empty house can cost the estate more than any pricing decision.
If there is a will, it names an executor and is filed for probate in the Surrogate's Court of the county where the person lived. For a Putnam County resident that is the Putnam County Surrogate's Court in Carmel. If there is no will, the court appoints an administrator instead. Either way, retain an attorney who handles estates. This is their part of the job, and it is not a place to save money.
The court issues Letters Testamentary to an executor, or Letters of Administration to an administrator. Those letters are what let you act for the estate, including signing a contract to sell the house. You can do a great deal of preparation before they arrive, but do not sign anything binding until your attorney says you have the authority. In some estates, especially without a will, the court may also need to approve the sale itself.
Your attorney and accountant will usually want the property's value as of the date of death, because it matters for the estate's taxes and for the heirs' cost basis. That is often a formal appraisal. Separately, you need a realistic list price for today's market, which is a comparative market analysis built from real nearby sales. They are related but not the same number, and you want both on paper early.
Most estate houses do not need to be renovated to sell, and the estate rarely gets back what it spends on a last-minute kitchen. The decisions that usually matter are smaller: clearing the house, a deep clean, handling anything that would stop a buyer's lender, and knowing the condition of the well, septic, roof and heating system before a buyer's inspector does.
Once the estate has authority, the sale runs much like any other New York sale, with attorneys on both sides and a contract before anything is binding. The proceeds go to the estate, not to the heirs directly. Debts, expenses and taxes are paid from the estate, and what remains is distributed according to the will or the law. Your attorney handles the order of that.
None of this needs letters from the court, and all of it saves time and money once they arrive.
Furniture, jewelry and papers carry memories and sometimes real value. Agree among the heirs on what is being kept, sold and donated before anything leaves, and write it down. It prevents most of the arguments that come later.
Neither number is the market. Automated estimates are especially unreliable in a thin market like Putnam's, where a lake, acreage or a dated interior moves value more than square footage does. Price from real comparable sales.
Every month the estate holds the house it pays taxes, insurance, utilities and upkeep, and an empty house in a Putnam winter is a risk on its own. Start the valuation and preparation while the paperwork is moving, so the house is ready to list when the authority arrives.
The house is rarely the hard part. The family usually is.
The executor or administrator acts for the estate, not each heir separately. Heirs should be kept informed, but the fiduciary makes the decisions and owes all of them a duty to act fairly.
Share the valuation, the list price recommendation and the offers. Most disputes between siblings come from someone feeling left out of a decision, not from the decision itself.
It can work, and it is common. It should be done at a documented fair price, with the attorney involved, so the other heirs can see they were treated fairly.
Probate is work most agents avoid and he does not. Tell him where the estate is in the process, even if the letters have not come through yet, and he will tell you what to do now and what can wait. Out-of-area executors are common, and most of it can be handled by phone.
Written by Lawrence Zacks
Licensed Associate Real Estate Broker, License #10301205239 · Selling in Putnam County since 1982 · Published
General information, not legal or tax advice. Every estate is different, and the court process, fiduciary authority and tax treatment depend on the specific estate. Confirm specifics with your estate attorney and accountant. More in Resources.