What is Inventory & Appraisal - California Probate

My name is Jeremy Higgins and I am the team leader of the Higgins Team and author of ProbateExpert.info I come to you with over 18 years of experience in Probate Real Estate.

Before I begin, and if appropriate, I'd like to express my condolences and acknowledge that losing a loved one is an emotionally challenging experience. When it involves navigating the probate process for real estate, the complexities can be overwhelming. We strive to be your guiding light throughout this journey.

In this blog, we'll delve into a crucial aspect of the probate process—Inventory & Appraisal in California, with a particular focus on the appraisal of real estate.

Target Audience: Those Facing Probate without a Trust

Our primary audience is individuals who have recently lost a loved one without a trust, finding themselves in the probate process. Specifically, we aim to assist those dealing with the probate of real estate and the challenges associated with the Inventory & Appraisal phase.

The Nuance of Probate Referee Appraisals

The Probate Referee's Role:

During probate, a court-appointed probate referee plays a crucial role in providing an independent valuation of the real estate. However, there's a unique nuance – the probate referee does not physically enter the property. They are only obligated to capture a photo of the front of the home, and in some cases, they may hire someone else to take this photo. This limitation becomes significant when assessing the condition of the property.

Challenges Posed by Limited Authority Sales

In Limited Authority Sales, where the judge mandates the sales price to be at least 90% of the probate referee's opinion of value, significant challenges can arise. If the property requires repairs, the probate referee's valuation may be higher than what the home is actually worth, setting a threshold that potential offers might not meet. This could potentially obstruct the sale of the home. At a minimum it will delay the sale, oftentimes for months.

Challenges Posed in Full Authority Sales

Whether navigating Limited Authority Sales or Full Authority Sales, informed valuations are crucial. Although the personal representative might perform in their role correctly and work diligently to obtain fair market value for the estate, if the Probate Referee's valuation is too high, it often causes disagreements amongst the heirs. This will likely lead to significant delays in the process.

Mitigating Challenges with a Proactive Approach

As a seasoned Probate Realtor team, we address this challenge proactively. We conduct our own detailed property assessment, capturing a comprehensive set of photos and estimate of repair costs. We share this information with the probate referee BEFORE their valuation. This allows the referee to consider property deficiencies, ensuring a more accurate and fair valuation. This is often overlooked by inexperienced Realtors and highlights the importance of hiring a seasoned probate expert agent. The key is to go this extra step prior to the completion of the Probate Referee's valuation. It becomes very difficult, if not impossible, to get the Probate Referee to amend their value after they have completed their report. Sadly we have seen many circumstances where the Realtor failed to provide this information in advance and it delayed the sale by several months. Don't let this be you!

Conclusion: Empowering Personal Representatives

In conclusion, this blog aims to empower personal representatives facing the intricacies of Inventory & Appraisal in California Probate. By providing valuable insights and proactive solutions, my goal is to facilitate a more informed and confident approach to the probate process.

Jeremy Higgins has been serving probate and trust administrators and executors for 18 years. 80% of his business in 2023 involved in Probate and Trusts sales. He is a licensed Realtor with eXp Realty and has been certified through the California Association of Realtors as a Probate and Trust Specialist. He and his team serve the following areas:

Sacramento County: Sacramento, Elk Grove, Citrus Heights, Folsom, Rancho Cordova, Galt, Isleton

Yolo County: Davis, West Sacramento, Woodland, Winters

Solano County: Fairfield, Vallejo, Vacaville, Dixon, Suisun City, Benicia

Placer County: Auburn, Roseville, Rocklin, Lincoln

El Dorado County: Placerville, South Lake Tahoe, El Dorado Hills

Sutter County: Yuba City

Yuba County: Marysville, Wheatland

Sonoma County: Santa Rosa, Petaluma, Rohnert Park, Sebastopol, Windsor, Healdsburg

Napa County: Napa, American Canyon, Calistoga, St. Helena, Yountville

San Mateo County: Redwood City, San Mateo, Daly City, South San Francisco, Menlo Park, Palo Alto

San Joaquin County: Stockton, Lodi, Manteca, Tracy