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Probate

Setting the Price for Real Estate During a Probate Administration

By October 29, 2025No Comments
estate

Table of Contents

Key Takeaways

  • In California probate, a personal representative may need to sell real estate to pay debts or distribute assets.
  • The property must be sold for at least 90% of its appraised value unless the representative has full authority under the Independent Administration of Estates Act (IAEA).
  • The appraisal must be completed within one year before the sale.
  • All terms of the sale—such as deposit, contingencies, and closing—are subject to probate court approval unless IAEA authority applies.
  • County probate courts may have local rules that affect pricing and sale procedures.

How to Determine Property Value During Probate

When real estate is part of a California estate, the personal representative (executor or administrator) has a fiduciary duty to ensure the property is sold for a fair price that benefits the estate and its beneficiaries.

Before listing the property, the personal representative must obtain a probate referee’s appraisal. Under California Probate Code § 10309, this appraisal establishes the property’s fair market value. The appraisal is valid for one year; if the sale does not occur within that time, an updated valuation must be obtained.

Rules for Setting the Sale Price

California law requires that a private sale of probate real estate meet these standards:

  • The sale price must be at least 90% of the appraised value.
  • The deposit (usually 10%) and all other terms must be disclosed in the petition for court confirmation.
  • Offers containing contingencies (such as financing or inspection) are typically not accepted by probate courts.
  • Court approval is generally required before the sale can close.

Suppose a property is sold at public auction or through a court-confirmed sale. In that case, higher bids (overbids) may be accepted during the probate confirmation hearing. It ensures transparency and fair market competition for the estate’s assets.

Independent Administration of Estates Act (IAEA) Authority

The Independent Administration of Estates Act (California Probate Code §§ 10400–10592) allows a personal representative with full IAEA authority to act with fewer court restrictions.

With full authority:

  • The representative may sell property without prior court approval, provided notice of the sale is appropriately given to all interested parties.
  • The property can be sold under typical market conditions, including sales with financing or inspection contingencies.
  • The representative must still act in the best interest of the estate and may be held liable for selling below fair market value.

If the representative only has limited authority, court confirmation remains required, and all standard probate sale procedures—including pricing restrictions—apply.

County-Specific Probate Rules

Each California county may have local probate rules governing:

  • How appraisals are submitted,
  • Required notice periods,
  • Form of sale petitions, and
  • Specific deposit requirements.

For example, Los Angeles, Riverside, and San Diego Counties each have local forms and policies that differ slightly in how probate sales are reviewed. Consulting a probate litigation attorney familiar with your county’s procedures is essential to avoid costly delays or rejected petitions.

Related Resources

FAQ

Can the executor sell property below appraised value?

Not without court approval. In most cases, the sale must be for at least 90% of the appraised value. Selling for less could lead to the sale being rejected or contested.

What if the property hasn’t been appraised in over a year?

A new probate referee appraisal must be obtained before the sale proceeds. Outdated appraisals can invalidate the transaction.

What if beneficiaries disagree with the sale price?

Beneficiaries can object to the sale or request a court hearing to review whether the price is fair and consistent with the estate’s best interests.

How The Grossman Law Firm Can Help

At The Grossman Law Firm, we help executors, administrators, heirs, and beneficiaries navigate the complexities of selling real estate during California probate. Whether you’re managing the sale or contesting an unfair price, Attorney Scott Grossman and his team can ensure your rights are protected and the process complies with the California Probate Code.

Call (888) 443-6590 or fill out our Get Help Now form.

Our Intake Specialists can evaluate your case at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.

Originally Published: July 17, 2017