How Does a Probate Sale Work in Michigan?
Step-by-Step Guide to Navigating a Probate Property Sale in Michigan
Selling a house through probate in Michigan is not as simple as putting a “For Sale” sign in the yard. It’s a legal process governed by court rules and state statutes, and it requires strict compliance with timelines and formal procedures. The sale must follow the guidelines outlined in Michigan’s Estates and Protected Individuals Code (EPIC), and only the person legally appointed by the probate court — the personal representative — has the authority to sell the property.
Whether you're an executor, administrator, heir, or simply trying to understand how this process works after a loved one has passed, it’s crucial to know that a probate sale isn’t just a real estate transaction — it’s part of settling an entire estate. The steps involved are designed to ensure that all debts are paid, assets are properly transferred, and everyone with a legal interest in the property is treated fairly.
This page will walk you through how probate sales work in Michigan — from the moment probate is opened to when the keys are handed over to the new buyer. You’ll learn who can initiate the sale, the required legal forms, what happens to the proceeds, and what delays to watch for — all with verified sources and links to help you dive deeper into the legal process.
What Is a Probate Sale?
A probate sale is the legal process of selling a deceased person's real estate as part of settling their estate. In Michigan, when someone passes away owning real property — like a house or vacant land — and that property wasn’t jointly owned or held in a trust, it usually must go through probate before it can be sold or transferred.
During probate, the court appoints a personal representative (PR) — also called an executor or administrator — to manage the estate. One of their duties may include selling property to pay off debts, divide proceeds among heirs, or follow the instructions in the deceased person’s will.
Here’s how a probate sale is different from a regular home sale:
The PR must act in the best interest of the estate, not for personal gain.
Depending on their authority, they may need court permission before listing or accepting an offer.
The title transfer cannot be completed until the court validates the sale and all conditions are satisfied.
Common reasons for selling a home in probate include:
To settle unpaid debts or taxes
To distribute funds among multiple heirs when keeping the home isn’t practical
Because the will specifically calls for the property to be sold
Probate sales are legally valid only if they’re initiated and overseen by the court-appointed PR. Heirs, family members, or real estate agents cannot act independently in selling the home unless they’ve been legally authorized.
📎 For guidance on becoming a personal representative and what’s involved, see the Michigan Courts – Guide to Informal Probate
Helpful internal resources:
• Who Has the Right to Sell a House in Probate in Michigan?
• Do All Heirs Have to Agree to Sell Property in Michigan Probate?
• Return to Homepage – Dennis Buys Houses
Who Can Initiate the Sale of a Probate Property in Michigan?
In Michigan, only the court-appointed personal representative (PR) has the legal authority to initiate and complete the sale of property during probate. This role is central to the probate process, and any sale without the PR’s involvement — or without proper court approval when required — could be considered invalid.
🧾 Who is the Personal Representative?
The personal representative is the person legally empowered by the probate court to manage the estate’s affairs. This includes:
Notifying heirs and creditors
Collecting and protecting estate assets
Paying debts and taxes
Distributing remaining assets according to the will or state law
Selling property when needed to fulfill any of the above
The PR is either named in the will or appointed by the probate court if no will exists.
🔒 Restricted vs. Unrestricted Authority
The probate court may grant the PR either unrestricted authority or restricted authority to sell real estate:
Unrestricted authority means the PR can list and sell the property without asking the court for permission each time.
Restricted authority requires the PR to file specific forms and get court approval before a sale is finalized. In Michigan, this is often handled using:
Heirs, relatives, or outside parties cannot sell the property or sign contracts on behalf of the estate unless they are officially appointed as PR or granted power of attorney before death.
📎 For more about legal authority in probate, see Michigan Legal Help – Personal Representatives
Helpful internal resources:
• How to Sell a House in Probate in Michigan
• Selling Property with Delinquent Taxes in Michigan
"When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
Michelle L. - Michigan
Steps in a Michigan Probate Sale
Selling a house through probate in Michigan involves a structured, step-by-step legal process. Each step is designed to protect the interests of the estate, ensure proper authority, and verify that assets are sold and distributed in compliance with the law.
Here’s a breakdown of the key steps involved in a Michigan probate sale:
✅ Step 1: Open the Probate Case
The probate process begins when someone files a Petition for Probate in the local probate court. Once approved, the court officially appoints a personal representative (PR) to manage the estate.
✅ Step 2: Inventory and Appraise the Property
The PR is responsible for completing an inventory of estate assets, including the real estate, using Form PC 577 – Inventory. A formal appraisal may be required, especially if the sale price could be contested by heirs or creditors.
✅ Step 3: Request Court Approval to Sell (If Required)
If the PR has restricted authority, they must file:
These forms give the court an opportunity to review the transaction and protect heirs or creditors from unfair practices.
✅ Step 4: List the Property for Sale
Once authorized, the PR can list the home for sale. The property may be marketed as-is, and the listing should disclose that it is a probate sale, which may involve court or timing contingencies.
✅ Step 5: Accept an Offer and Close the Sale
After accepting an offer, the PR proceeds to close the transaction. The buyer’s funds are deposited directly into the estate account. The PR must keep accurate records of the sale and include them in the estate’s final accounting.
✅ Step 6: Distribute Proceeds According to the Estate Plan
After debts, taxes, and fees are paid, the remaining funds from the sale are distributed to heirs per the will or Michigan’s intestate succession laws.
Probate sales may be delayed if court approval takes time, if title issues arise, or if heirs object to the terms of the sale. That’s why it’s essential for PRs to keep careful documentation and communicate regularly with all involved parties.
📎 Learn more about selling real estate through probate from Michigan Legal Help – Selling Property
Costs Involved in a Probate Sale in Michigan
Selling a home through probate isn’t just about transferring ownership — it also comes with a variety of costs that can impact the estate’s value and the amount heirs ultimately receive. Understanding these expenses ahead of time helps personal representatives (PRs) plan and avoid delays or disputes.
Below is a breakdown of the common costs associated with a probate property sale in Michigan:
🧾 1. Court Fees
The probate court charges various filing fees, including the initial petition fee, inventory fee, and orders for sale of real estate if applicable. These fees are usually paid from estate funds.
For example, filing the Petition to Sell Real Estate (PC 681) may involve a filing fee if a formal hearing is required.
🧾 2. Property Appraisal and Maintenance
A formal appraisal may be required to determine fair market value — especially if there are multiple heirs or contested valuations. Maintenance expenses can also add up, including:
Lawn care or snow removal (to avoid city citations)
Utility bills
Repairs needed to make the property safe or accessible
🧾 3. Title Work and Transfer Tax
Before the sale can close, the title must be cleared of liens or claims. This may involve paying off:
Back property taxes
Outstanding mortgages or HELOCs
Other judgments or encumbrances
Additionally, Michigan transfer tax may apply at the time of sale, unless the estate qualifies for an exemption.
🧾 4. Real Estate Commission
If the PR hires a licensed real estate agent to list the property, a standard 5% to 6% commission is typically paid from the proceeds. In some cases, especially with “as-is” or cash buyers, no commission is necessary if the PR sells the home directly.
🧾 5. Legal and Professional Fees
Although not always required, PRs often hire an attorney to help navigate probate, especially in contested or complex cases. Other professional fees may include:
Certified public accountants (CPAs) for tax filings
Probate document preparers
Estate sale companies or cleanout services
📎 For a detailed explanation of probate costs, review Michigan Legal Help – Probate Expenses
Gloria B. - Clinton Township, Michigan
“Thank you for contacting me. I didn’t know what I was going to do with this house"
Timeline of a Probate Sale in Michigan
One of the most common questions heirs and personal representatives ask is, “How long does it take to sell a house through probate?” The answer depends on several factors — including court schedules, the complexity of the estate, and the condition or marketability of the home — but understanding the typical timeline can help you prepare.
📅 Typical Timeline: 6 to 12 Months
While every case is unique, most Michigan probate cases involving real estate fall within a 6 to 12-month windowfrom the time probate is filed to when the sale closes. Here’s a general breakdown of the timeline:
✅ 1. Appointment of the Personal Representative (1–2 months)
The probate process begins when someone petitions the court to open the estate. Once the PR is appointed, they receive Letters of Authority that allow them to manage and sell estate property.
✅ 2. Inventory, Appraisal, and Sale Preparation (1–2 months)
The PR inventories the estate’s assets and obtains a property appraisal. If the home is in poor condition or vacant, it may require cleaning, minimal repairs, or securing before listing.
✅ 3. Court Petition and Sale Approval (if restricted authority) (1–3 months)
If court approval is required, filing Form PC 681 and waiting for the judge’s decision can extend the timeline, especially if heirs raise objections.
✅ 4. Marketing and Selling the Home (1–3 months)
Once approved, the property is listed and marketed. Probate homes may attract cash buyers or investors due to their "as-is" nature, which can speed up the process — but longer timelines are possible depending on market conditions.
✅ 5. Closing and Fund Distribution (1–2 months)
After an offer is accepted, closing typically proceeds like any other real estate transaction, with title work, disclosures, and fund transfers. The PR deposits sale proceeds into the estate account and continues settling the estate.
⏳ Factors That Can Cause Delays:
Title issues, such as unresolved liens or unknown heirs
Disagreements among heirs or objections to the sale
Buyer financing problems or low appraisals
PR inaction or inexperience
📎 To explore the general flow of probate, visit Michigan Legal Help – Informal Probate Timeline
Special Considerations in a Michigan Probate Sale
Selling a home during probate is not just a legal procedure — it's often an emotional and logistical challenge as well. Executors and heirs need to be aware of several special considerations that can affect the timeline, sale price, and ease of the transaction.
Here are a few key issues to keep in mind:
🏚️ 1. Selling the Home “As-Is”
Many probate properties are sold in their existing condition — also known as “as-is.” This means no major repairs or updates are made before the sale. While this appeals to investors and cash buyers, it may result in a lower sale price compared to traditional listings.
However, selling as-is can save the estate time and money, especially if:
The property needs extensive repairs
There are no liquid funds in the estate
The heirs prefer a fast resolution
If the home is distressed, see this related guide:
• How to Sell a House That Needs Repairs Fast in Michigan
💬 2. Keep All Heirs Informed
Even if the personal representative has full authority, poor communication can cause friction — or even legal disputes. Keeping heirs informed throughout the sale process helps avoid misunderstandings, delays, or accusations of unfairness.
Be sure to:
Share listing details and offers (when appropriate)
Disclose court filings and deadlines
Provide a timeline for closing and distribution
Learn more here:
• Do All Heirs Have to Agree to Sell Property in Michigan Probate?
📜 3. Title and Lien Issues Must Be Resolved
Before any property can legally change hands, the title must be clear of liens or encumbrances. This includes:
Unpaid property taxes
HOA fees
Contractor liens
Mortgage or equity loans
If these issues are not addressed before closing, they can derail the sale. The personal representative is responsible for working with the title company to resolve any outstanding problems.
📎 For deeper insight, visit Michigan Legal Help – Title Clearance in Probate
Are You Trying to Understand Your Options?
Talk to Dennis Now – (734) 224-5977
Common Challenges and How to Avoid Them in a Probate Sale
Even when all the right forms are filed and the personal representative follows the legal steps, probate sales can hit snags. Knowing the most common obstacles — and how to proactively address them — can help reduce stress and prevent costly delays.
⚠️ 1. Disputes Between Heirs
Heirs don’t always agree on whether the property should be sold, what it’s worth, or how the proceeds should be divided. These disputes can stall the sale and even result in litigation.
Tips to avoid issues:
Be transparent with all heirs from the start.
Provide regular updates during the sale process.
Share official documents like the listing agreement or offer letters.
If disagreements persist, consult the court or an estate mediator.
📎 See: Michigan Legislature – Estates and Protected Individuals Code (EPIC)
🏚️ 2. Vacant Property Risks
Vacant probate homes are at greater risk for:
Vandalism or break-ins
Pipe freezes and water damage
Code violations or nuisance complaints from neighbors
To prevent these risks:
Notify the local municipality that the home is vacant.
Keep utilities on if possible.
Hire a property management company or check on the home regularly.
📎 Learn more about risks of vacancy:
• What Happens When a House Sits Vacant in Michigan?
• Vacant Home Insurance in Michigan
💰 3. Unrealistic Price Expectations
Heirs may expect the home to sell for market value — but probate properties often sell for less, especially if they’re in poor condition or being sold “as-is.”
PRs should obtain a formal appraisal or comparative market analysis (CMA) and use that as a realistic guide for pricing.
📝 4. Incomplete Paperwork or Missed Deadlines
Probate is highly procedural. Missing a filing, submitting the wrong form, or failing to notify creditors or heirs can delay court approval or invalidate the sale.
Avoid this by:
Using Michigan Court forms directly from the source
Keeping detailed records of communication, offers, and court documents
Consulting an attorney or probate specialist for complex cases
See why so many people recommend us...
“Mr. Fassett – thank you for working with us to buy my Mom’s home after she passed away. When you mentioned that you would give us an offer within 24 hours and then close quickly I didn’t really believe that we would have the house sold in only 2 weeks. I’m glad I found you.”
Michelle L. - Michigan
“Thanks for buying my Mother’s home. It was a big help that you were able to buy it without us having to clean it out and get it ready to sell. My mother had accumulated lots of stuff and after the stress of her long illness I was exhausted and I dreaded dealing with all of it. I also liked it that you gave me a very fair price for the home. I’m on a fixed income and that really helped a lot.”
Henry G. - Michigan
“Dennis – thank you for helping us with our Mom’s home. This was a very traumatic experience for us, and we appreciated your patience with all the emotions we experienced during the process. You were really patient and understanding with us during the sale process, and we’re sure that Mom’s home will be in good hands. God Bless.”
Claudia and Nancy M. - Michigan
We Help Michigan Families Navigate These Situations Every Day
At Dennis Buys Houses, we’re not just cash buyers — we’re trusted problem-solvers who help Michigan families find real answers during difficult times.
Since 2004, we've been helping homeowners across Michigan sell their properties quickly and easily—without the stress of agents, repairs, or hidden fees.
We’re a family-owned, local business with deep roots in the community. Over the years, we’ve helped hundreds and hundreds of homeowners in situations just like yours—whether they’re dealing with delinquent property taxes, foreclosure, or simply needing a fresh start.
If you're dealing with a tough family situation and don’t know where to turn, we’re here to help.
Start here:
- Learn how we buy houses in Michigan: How It Works
- See what makes us different: Why Choose Us
- Ready to get a cash offer? Contact Us Today
Whether you’re ready to sell or just want to explore your options, we’re here for you. Call us today, and let’s talk about how we can make your situation easier.
No pressure. No judgment. Just real help when you need it.
Know Someone Who Needs to Sell Fast? We Pay Referral Fees.
Talk to Dennis Now – (734) 224-5977