Probate Sales in New Jersey

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By Jon Stubbs Updated October 29, 2024
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Edited by Ashley Simon

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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 New Jersey, probate sales can take less than a year to be resolved. This is much longer than the average 59 days it typically takes to sell a home in New Jersey.[1]

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 at a steep discount, 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.

Need an agent to help you navigate a probate sale or purchase? Find experienced agents in your zip code with probate sales experience. Sellers get a pre-negotiated 1.5% listing fee (half the typical rate).

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 disclosure process when selling your home.

Can a house be sold while in probate?

A property cannot be legally sold until the probate process is completed. 

Generally, the probate process is necessary when:

  • The property owner dies without a will
  • The owner's will is contested or invalid
  • The will needs to be validated to properly distribute assets to heirs

The point of probate is to make sure the estate is able to pay off all of the deceased person's debts and the heirs to the estate receive their inheritance. Therefore, the house cannot be sold until all of these issues are squared away.

How long does probate take in New Jersey?

Probate sales can take less than a year in New Jersey.[2]

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.

Once all debts have been settled and potential heirs found, the home can be sold.

If you're going through a probate process with an inherited property, you're probably looking for a quick sale once it's completed. 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.

⚡️ Get competing cash offers and expert advice today — all for free, with no pressure to accept! Make sure you’re maximizing your home’s value while selling fast.

How does a probate sale work in New Jersey?

The details of the probate sale process in New Jersey depend on whether the deceased left a valid will behind and the value of the estate.

In New Jersey, estates worth less than $20,000 may be able to use a simplified probate process known as a summary probate procedure.

Estates worth more than $20,000 will need to use the formal probate process.

Formal probate in New Jersey

Here's a high-level overview of what the formal probate sale process looks like in New Jersey:

  • 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. 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 New Jersey?

The average cost of a probate sale in New Jersey 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 New Jersey:

  • Executor fees: New Jersey uses a sliding scale to determine fees. The first $200,000 is 5%, $200,001–$1,000,000 is 3.5%, and greater than $1,000,000 is 2%.[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: $374 on average in New Jersey[6]

Closing costs in New Jersey

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 New Jersey. These costs will be paid for by the estate.

Closing costs Average rate Average cost
🔍 Title service fees 0.12% $653
🗞 Owner's title insurance 0.28% $1,519
💵 Lender's title insurance N/A Typically paid by buyer
🏡 Transfer tax 0.80% $4,288
✍ Recording fees 0.00% $5
🤑 Buyer incentives 2% $10,720
💲 Other costs Varies Varies
Total 3.21%
$17,210
Show more

💰For a more accurate estimate of your expenses, use our cost to sell in New Jersey 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 New Jersey's laws on real estate disclosure requirements

How to sell a home in probate in New Jersey

Much of the selling process for a home in probate is the same as any other home sale in New Jersey. However, the timeframe and the level of court supervision will depend on whether the sale is a formal or informal probate sale.

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. Unless the home is in good condition, you'll likely want to avoid iBuyers with specific repair requirements, since the cost of repairs cannot be paid for by the estate in most circumstances. 

» COMPARE: See the best cash home buyers in New Jersey, according to our research.

How to avoid probate in New Jersey

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 have your assets or property jointly owned, so another owner assumes sole ownership if one owner dies.

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.

Remember that each estate is unique, and an estate planning attorney can help you choose the right moves for you and your heirs.

Article Sources

[1] Realtor.com – "Average days on market".
[2] Trust & Will – "Cost of Probate in New Jersey".
[3] World Population Review – "Executor Fees by State".
[5] Trust & Will – "Who pays for a probate bond?".

Authors & Editorial History

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