When a parent dies and leaves a full house, families hear the phrase “estate sale” and assume it means selling the house. Usually it does not. An estate sale is a sale of the belongings inside: furniture, dishes, tools, jewelry, the car in the garage. A cash sale is the sale of the house itself. You may need one, the other, or both, and the order you do them in can save you weeks and real money. If the house is in Towson and you’re dealing with an estate sale, see selling a house fast in Towson.
Who is allowed to sell anything
Before anyone prices a dresser or calls a buyer, figure out who has legal authority.
If the house and its contents were owned only by the person who died, they belong to the estate. In Maryland, the person who can sell estate property is the personal representative named by the Register of Wills in the county where the decedent lived. That person gets Letters of Administration. Until then, nobody has clear authority to sell the house, and family members who start giving away or selling belongings can create problems with other heirs.
If the house was in a living trust, the successor trustee handles it instead, without probate. If it was jointly owned with survivorship, the surviving owner may already own it.
For background on Letters and timing, see /blog/letters-of-administration-maryland-what-buyers-need/ and /blog/how-long-does-probate-take-in-maryland/.
The inventory comes first
A Maryland personal representative generally has to file an inventory of estate property with the Register of Wills within three months of appointment, with values. That includes the house and valuable personal property. Before anything leaves the house, walk through and take photos of every room, open closets and drawers, and note anything that might be valuable: jewelry, art, coins, firearms, collectibles, and vehicles.
Have valuable items appraised if their worth is unclear. That protects the personal representative if another heir later questions what something was sold for.
How a contents estate sale works
An estate sale company comes in, sorts and prices the contents, advertises, and runs a sale over two or three days, usually on a weekend. Buyers walk through the house and pay for what they carry out.
What families should know:
- Commission. Companies usually take a percentage of gross sales, and the rate varies with the size and value of the contents. Get it in writing, along with what happens to unsold items.
- Minimums. Many companies will not take on a house unless the contents are likely to bring in enough to cover their time.
- Leftovers. Some companies haul away or donate what does not sell for an extra fee. Others leave it behind.
- Timing. Booking, setup, and the sale itself can take two to six weeks depending on the company’s calendar.
- Wear on the house. Hundreds of people walking through can scuff floors and walls. Remove anything that is not for sale and lock off rooms you do not want opened.
Family members should take what they want before the sale company starts pricing, with the personal representative’s approval and a written list of who took what.
How a cash house sale works
A cash sale moves the house itself. The buyer makes an offer on the property as it stands, the personal representative signs a contract once Letters are in hand, and a title company closes the deal. Proceeds go to the estate account, not to individual heirs, and then get distributed through the probate process.
Many cash buyers, including me, will buy the house with belongings still inside. That can be a relief for families who live far away or cannot face sorting a lifetime of things. If you go this route, take out photographs, papers, and anything with sentimental value first, and put in writing what stays and what goes.
Which order makes sense
Contents first, then house. Works when the belongings have real value, a family member is local and can manage the sale company, and the estate can afford to carry the house for another month or two. The house usually shows better empty if you plan to list it.
House first, contents included. Works when the contents are mostly worn furniture and household goods, heirs are out of state, the house needs a lot of work, or carrying costs are piling up. Pull the valuables and keepsakes, then sell the house with everything else left behind.
Both at once. Some families pick out valuables, run a short estate sale, and sign a contract on the house with a closing date after the sale weekend. A cash buyer can usually work around that schedule.
Keep the house protected while you decide
A vacant house with valuables inside is a target. Change the locks, stop the mail, and keep the heat on in winter to prevent frozen pipes. Call the homeowner’s insurance company, because many policies limit coverage once a house sits empty, and the estate may need a vacant-dwelling policy. Keep paying property taxes, and if the decedent had a mortgage, keep it current if you can. If payments have fallen behind and notices are arriving, call Maryland HOPE at 1-877-462-7555 and a HUD-approved housing counselor, and see /stop-foreclosure/.
Records worth keeping
Keep receipts from the estate sale company, a copy of their final accounting, appraisals, and the settlement statement from the house sale. The personal representative will need them for the estate accounts filed with the Register of Wills, and heirs who question a number later can see exactly where the money went.
Do I need probate to hold an estate sale?
If the belongings were owned only by the person who died, the personal representative should have authority before selling them. Small estates may qualify for a simpler process through the Register of Wills.
Can heirs just divide the furniture?
With the personal representative’s agreement and a written record, yes. Disputes are much easier to avoid when everyone signs off on the list.
Will a cash buyer take the house with everything in it?
Many will. Ask for it in writing so nobody is surprised at the final walkthrough.
Talk through your situation
Call or text Evan Weissman at (410) 498-7473 if you are sorting out a parent’s house and want a number with the belongings left in place. You can also reach me at /contact-us/.