Losing a loved one is a sad and scary time and on top of this there is often a lot of administration, especially if you are tasked with handling their estate. Auctions are a good way to sell a probate property quickly, whatever its condition. Here are the steps to consider when preparing a probate property for auction.

Why sell a probate property at auction?

Auctions facilitate a fast and efficient sale. When a property sells at auction, contracts are exchanged on the fall of the auctioneer's gavel and completion usually takes place just 20 working days later. Aside from the speed of transaction, auctions (particularly if they are live-streamed online) can generate competitive bidding leading to prices in excess of the guide. A good auctioneer will have a robust marketing campaign in place which should include sharing the online catalogue with thousands of registered buyers as well as featuring the property on the major property portals to showcase it to the widest possible market. Auctions are also ideal for selling properties that are unmodernised – buyers often search auction catalogues to find project properties requiring renovation.

What is probate?

Probate is the legal and financial process of dealing with the property, money and possessions (the assets) of a person who has died. The process involves proving that a will is valid (if there is one) and confirming who has authority to administer the estate. Before the next of kin or executor named in the will can claim, transfer, sell or distribute any of the assets in accordance with the will, a grant of probate must be obtained. The grant of probate is a legal document which gives a specified person the legal authority to act. 

How do I start the process and long does it take?

Before the probate process can begin, the executor of the estate will need to be determined and filed with the probate office. An executor is traditionally named in a will and is often a family member. If there is no will, an administrator will need to be established. You can put the home on the market while you’re waiting for probate but the sale cannot complete until it has been granted. Bear in mind it can take three to six months for the grant of probate to be issued – so you should apply for this as soon as possible.

How to prepare a property for auction

Often properties being sold due to probate are empty. If this is the case you should make sure it is properly locked up. Turn off any appliances and ensure there is no running water. You should also let the home insurance provider, council and utility companies know the owner has died.

Go through the property carefully to check for any important legal documents and items of financial or sentimental value. In terms of the sale, you should specifically look for the deeds of the property. Any items that may be worth a significant amount of money will need to be valued as these will contribute to the overall value of the estate (think about furniture, art and jewellery as well as important paperwork such as policy documents, wills and investment certificates).

Organise a professional probate valuation

This can be arranged through an auctioneer and will involve an independent surveyor visiting the house to estimate its worth. The valuation will help decide a reserve price for the auction, although you should also speak to an auctioneer who will advise on what they believe is a realistic sale price.

Once you know the value of the estate (including property, contents and additional assets), you can work out whether inheritance tax is due (don’t forget to deduct any outstanding debts). Once you have calculated the inheritance tax liability and submitted the necessary forms, any tax that is due will need to be paid and you can apply for the grant of probate.

Prepare the house for viewings

Clear the property of its contents, you can either choose to do this yourself or instruct a house clearance company. You could consider doing this before photographs of the property are taken by the auctioneer if the house is particularly full of possessions, but either way you should ensure the house is neat, tidy and ready for viewings.

Further information

Contact Ralph Mendes da Costa

How to sell a property at auction

Learn more on how we can help when it comes to auctioning a probate property