When a loved one passes away, inheriting their property can be a bittersweet pill to swallow. As you process the emotional loss and the implications this has on your life, working out what’s best to do with the property is probably not at the top of your to-do list. 

But slow decision-making can be costly: mortgage fees, council tax payments, and general bills can quickly lead to a serious financial headache. 

To help with working out whether selling is the right thing to do for you, obtaining a house valuation for probate purposes is key. In this article, we outline the most frequently asked questions around valuations. 

What does ‘probate house valuation’ mean? 

House value is regarded as the open market value (OMV) of the home at the time the deceased passed away. 

Why is the valuation so important? 

When someone passes away, you have to ensure that all their assets and liabilities are valued. This includes, but is not limited to, cash, property, investments and life policies. This process of valuation essentially determines whether the deceased’s ‘estate’ is liable for inheritance tax, and if so how much needs to be charged. 

Who can value a probate property? 

A professional needs to value a probate property as per dictated by the law and the HMRC. Estate agents or surveyors are therefore the obvious choice. 

There are pros and cons for both: 

• Estate agents — are usually quicker than surveyors and don’t usually charge for a house valuation.
  
  • But you need to be clear with what you’re after (and choose carefully) since some estate agents will inflate the value of the home to secure the listing. This is problematic on two levels: firstly, you could be liable for more inheritance tax; and secondly it may not be accepted by the HMRC if it is not an official (and accurate) market valuation.
    
• Surveyors — can be costly and timelines can vary dramatically dependent on which firm you’ve chosen. Remember that time is key when it comes to inheritance as taxes apply fairly quickly; for example, you need to be paying tax by the end of the sixth month after the person has died (even if a final valuation hasn’t been reached on the property).
  

What if the house is sold for more than the probate value? 

Unfortunately, the HMRC may decide to recalculate the inheritance tax liability on the property, and you could be charged more. This can be challenged, however, with the District Valuer. 

What if the house is sold for less than the probate value? 

On the flipside, you can request a refund from HMRC for any overpayment in tax if the house sells for less than valued. 

If selling is the right option for you, then the next stage is choosing the right estate agent. 

But, like anything, estate agents come in all shapes and sizes and it can be hard to know which way to turn.  

Estate agents are notorious for promising the world but delivering very little, with the problem compounded when you throw probate homes into the mix. With 51.8% of people failing to sell a property in ten months and 30% of sales in the UK falling-through it’s not a pretty picture— and that was before COVID-19. 

A quick and secure sale is often key for probate properties and that means doing your due diligence when it comes to choosing the right estate agent. 

Here we’ve outlined some of the questions that you need to ask, and things that you need to consider, before making your choice. 

Have you sold probate property before? 

It’s not a question of having done one or two. You need an estate agent that understands the complexities of probate and the need to move quickly yet achieve a fair price. Ask for references from previous customers that they’ve worked with. 

What sets you apart? 

Every estate agent should have something that makes them stand out. If they’re not confident in selling themselves, then they probably won’t do a great job when it comes to negotiating the best price for you. 

What are your marketing tactics? 

Probate often requires more aggressive marketing tactics than ‘standard’ properties. You want to hear that they are proactive, have a solid database of motivated buyers, and are skilled negotiators at achieving the best price. Ask for details on exactly what they do and how much support that they give you. 

Is a local or national agent better? 

Bigger isn’t always better, so local agents tend to always be the smarter choice. Ask about fees, their fall-through rate, how quick they can sell the property, and their experience with probate properties. 

What about an online agent? 

Unless you really know what you’re doing, then no. Online estate agents don’t provide much hands-on support meaning that once you’ve paid your fee to list with them, then their job is more or less done so you’re on your own to actually sell the property. They might seem cheaper on the face of it, but it’s often more costly in the long-run. 

How can we help? 

At Rezee, we’re used to dealing with probate properties, from accurately valuing the property to the final sale. We’re not a traditional estate agent with indefinte timelines and high-fees. We’re on your side, working with you to get a fair price within an agreed timeframe. We aim to take the hassle out of the selling process and assign all our customers with a dedicated point of contact to help handle the process from start to finish. The best bit? We don’t charge any selling fees and have an army of motivated buyers in our database; from investors who will buy a property no matter what state of disrepair, through to first-time buyers who want to get on the property ladder quickly and have funds in place. For more information, or help with what to do, call our team on 01482 762166.