What is a Court Ordered Probate Referee and how do they affect the sale of Real Property?
A court ordered probate referee is a licensed appraiser who is appointed by the court to appraise the value of assets in a probate estate. This includes real property, as well as other assets such as stocks, bonds, and personal property. The referee’s appraisal is used to determine the value of the estate for tax purposes and to set the sale price of any real property that is sold as part of the probate process.
The probate referee’s appraisal can affect the sale of real property in several ways. First, it can affect the price that is ultimately paid for the property. The referee’s appraisal will be used as a starting point for negotiations between the buyer and seller. If the buyer believes that the property is worth more than the referee’s appraisal, they may be willing to pay more for it. However, if the buyer believes that the property is worth less than the referee’s appraisal, they may be able to negotiate a lower price. In addition, the purchase price must be within 10% of the referee’s appraisal. It can be more but no less than 10% below.
Second, the probate referee’s appraisal can affect the amount of time it takes to sell the property. If the property is appraised for a high price, it may be more difficult to find a buyer who is willing to pay that price. This can delay the sale of the property and increase the costs associated with the probate process.
Third, the probate referee’s appraisal can affect the amount of taxes that are owed on the sale of the property. The tax basis for the property is the value of the property at the time of death. If the property is appraised for a high price, the tax basis will be higher and the estate will owe more taxes on the sale of the property.
Overall, the probate referee’s appraisal can have a significant impact on the sale of real property in a probate estate. It is important to understand how the appraisal can affect the sale price, the time it takes to sell the property, and the amount of taxes that are owed.