Probate is the legal process of distributing a person's assets after they have passed away. In real estate, a probate sale refers to a court-supervised sale of a property after the owner has died.
Probate sales are often necessary when a property isn't protected by a trust or other legal means. The probate court reviews the deceased person's assets and determines the best way to pay off their debts and distribute their assets.
Due to their complexity, probate sales usually take much longer than a typical home sale. In Missouri, probate sales can take at least six months to be resolved. This is much longer than the average 37 days it typically takes to sell a home in Missouri.
If you're looking to buy a home and you're not in any hurry, a probate sale may offer you an opportunity to buy below market value, depending on the condition of the home. If you're selling a home in probate, the advice of an experienced probate agent can be a huge help.
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Disclaimer: You shouldn't construe this article as legal advice. Clever Real Estate recommends consulting a real estate agent or a real estate attorney as you go through the probate process when selling your home.
Can a house be sold while in probate?
Yes, but it takes a court-appointed personal representative or executor to do so.
Compared to a regular real estate sale, the process is far more in-depth and takes a long time because of the bureaucracy involved.
However, buyers willing to deal with the long waiting times and lack of protection in the form of contingencies may benefit from lower prices and less competition.
How long does probate take in Missouri?
Probate sales can take at least six months in Missouri.[1]
Sometimes probate involves searching for family members and sending out public notices to inform potential creditors of the sale. The notification process is one reason why the process takes so long.
If you're going through a probate process with an inherited property, you're probably looking for a quick sale once you have the authority to sell. Clever Offers can connect you with vetted cash buyers who place bids on your home. This helps you compare fair offers from a variety of local investors who can often close in a few weeks.
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How does a probate sale work in Missouri?
The details of the probate sale process in Missouri depend on whether the deceased left a valid will behind and the value of the estate.
In Missouri, estates worth less than $40,000 may be able to use a simplified probate process known as a small estate affidavit.[2]
The affidavit covers both personal property and real property, and is recorded with the recorder of deeds to transfer a home.
Estates worth more than $40,000 will need to use the formal probate process.
Confirm with an attorney or the probate court about whether your home can pass through the simplified probate process.
Formal probate in Missouri
Here's a high-level overview of what the formal probate sale process looks like:
- The court appoints an administrator, often the executor named in the will.
- The executor hires a real estate agent, has the home appraised, and begins marketing the home.
- Buyers make offers, putting down a 10% earnest money deposit.
- The executor petitions the court to review all offers.
- All potential buyers meet at the courthouse to have their offers reviewed by the judge. In some states, buyers may outbid each other in an auction format.
- The winning bidder signs a contract (with no contingencies) and pays the balance of the sale price at closing.
» LEARN: See a detailed description of the probate process
How much does a probate sale cost in Missouri?
The average cost of a probate sale in Missouri is difficult to determine because of the many variables involved from one case to another.
Cost will depend on how large and complex an estate is and whether any heirs contest the will. Probate expenses are paid from the estate.
Here are some common expenses to expect for probate sales in Missouri:
- Executor fees: Missouri uses a sliding scale to determine fees. The first $5,000 is 5%, the next $20,000 is 4%, the next $75,000 is 3%, the next $300,000 is 2.75%, the next $600,000 is 2.5%, and estates greater than $1,000,000 have a 2% fee.[3]
- Court filing fees: $50–$1,200. A fee due to the court to initiate the probate process. The exact amount is based on the size of the estate.[4]
- Notifications: $10–$300. Estimated costs to notify beneficiaries and heirs using certified mail and public notifications.[4]
- Probate bond: $125–$2,500, or about 0.5% of estate value on average. A refundable payment charged by the court to guarantee the executor fulfills their duties.[5]
- Appraisal fees: $344 on average in Missouri[6]
Executor fees aren’t always calculated on the full value of the estate, and the way a home counts varies by state. Confirm with an attorney or the probate court how the fee would be calculated in your case.
Closing costs in Missouri
In addition to probate costs, the seller will need to pay all of the typical seller closing costs, which are fees and taxes you pay during closing in Missouri. These costs will be paid for by the estate.
| Closing costs | Average rate | Average cost |
|---|---|---|
| 🔍 Title service fees | 0.22% | $600 |
| 🗞 Owner's title insurance | 0.39% | $1,053 |
| 💵 Lender's title insurance | N/A | Typically paid by buyer |
| 🏡 Transfer tax | N/A | N/A |
| ✍ Recording fees | 0.01% | $30 |
| 🤑 Buyer incentives | 2.00% | $5,358 |
| 💲 Other costs | Varies | Varies |
| Total | 2.66% |
$7,135 |
💰For a more accurate estimate of your expenses, use our cost to sell in Missouri calculator.
Should you make repairs to a probate sale home?
Properties in probate are usually sold as-is. Buyers who are interested in a probate sale property should understand this before making an offer.
The cost of the upkeep of the home is paid for by the estate during the probate process, so any repair expenses would need to come from the estate, too. This would mean less inheritance for the heirs, who may disagree on the necessity of any repairs or improvements before selling.
Even if you aren't making any repairs, you'll still need to follow Missouri's laws on real estate disclosure requirements.
How to sell a home in probate in Missouri
Much of the selling process for a home in probate is the same as any other home sale in Missouri. The difference is how much the court is involved, which depends on state law and what the will allows. Some sales need court approval before closing. Others can go ahead with less court oversight.
Either way, you can use the same methods to sell your home when the time comes to list it.
- List with a realtor: Having a real estate agent who specializes in probate on your side is one way to stay informed throughout the process. Look for an agent who is a Certified Probate Real Estate Specialist (CPRES).
- Sell to a real estate investor: Many investors see probate sales as an opportunity to pick up a flippable property at a discounted rate.
- Sell to a cash home buyer: Cash home buyers who buy homes in "as-is" condition are another option for a probate sale.
» COMPARE: See the best cash home buyers in Missouri, according to our research.
How to avoid probate in Missouri
Dealing with a probate sale might inspire you to try to avoid the same for your own heirs. One way to avoid probate is to own property jointly with the right of survivorship, so the surviving owner automatically takes full ownership. In states that allow them, a transfer-on-death (beneficiary) deed can also pass a home directly to a named person without probate.
Another strategy is to place assets in a living trust, which provides greater control and protection of the assets than a will alone. Trusts are also useful when beneficiaries such as minors are unable to control their own finances.
In Missouri, you have another option to avoid probate: a transfer-on-death (TOD) deed, sometimes known as a beneficiary deed. A TOD deed is like a regular deed used to transfer property, except it automatically takes effect once the owner dies. A TOD deed must be officially filed with the city or county where the property is located.[7]
Transfer-on-death deeds are usually simpler and less expensive to set up than trusts.
Remember that each estate is unique, and an estate planning attorney can help you choose the right moves for you and your heirs.
Additional resources for Missouri home sellers
