Who can be an executor of an estate in Michigan?

Typically the closest relative of the deceased is appointed as executor or administrator. However, minors, non-US residents, surviving business partners, and those incapable of performing fiduciary duties cannot serve as administrators.

What percentage must a probate property sell for in Michigan?

In Michigan, a probate property must sell for at least 90% of its appraised value.

How are real estate commissions handled in a Michigan probate sale?

Commissions in a Michigan probate sale are handled the same as any real estate transaction. A typical 6% commission is split 50/50 between the buyer's and seller's agents. Commissions are paid from the sale proceeds before heirs receive their distributions.

How to Sell Your Home in Probate in Michigan: A Step-by-Step Guide

Faced with selling a home after a death in the family? Here is everything Michigan homeowners and estate executors need to know about the probate property sale process.

By Richard Stewart, Principal Real Estate Broker — REO Specialists LLC | Kalamazoo, Michigan | 269-345-7000

A probate property sale can feel like a daunting process, especially when it comes supercharged with emotions following the death of a loved one. But with the right understanding, preparation, and an experienced team by your side, selling a home in probate in Michigan does not have to be complicated or overwhelming.

This guide walks you through every step of the Michigan probate real estate process — from the initial court appointment to the final closing — so you can move forward with clarity and confidence during a difficult time.

What Is the Probate Process in Michigan?

The probate process in Michigan is initiated when a property owner passes away leaving a will. In this case, the property is considered to be in probate and a court oversees the legal transfer and distribution of the deceased's assets — including any real estate they owned.

Selling a home through probate in Michigan can be an emotional and challenging process without an experienced team supporting you. In most cases, the Michigan probate process for selling a property follows these key steps:

Appointment of an administrator or executor by the court
Determination by the court of whether the process is formal or informal
Professional appraisal of the property before listing
Listing of the property on the MLS with an experienced local realtor
Court hearing before the sale of the property is finalized
Finalization of the property sale
Disbursement of real estate commissions and estate proceeds to heirs

Pro Tip: It is strongly recommended to hire both an experienced local real estate professional who specializes in probate sales and a qualified Michigan estate attorney to guide you through the process. Having the right team in place from the beginning can save significant time, money, and stress.

The Appointment of an Administrator or Executor of the Estate in Michigan

The first and most important step in the Michigan probate process is the appointment of an administrator or executor of the estate. If the deceased did not specifically designate someone in their will, the court will appoint a qualified individual to serve in this role.

Who Can Be an Administrator or Executor of a Michigan Estate?

Typically, the designated administrator is the closest living relative of the deceased. This is usually determined either by other family members reaching a mutual agreement or by the court making a formal appointment.

Who Is NOT Allowed to Be an Administrator in Michigan?

Michigan law prohibits the following individuals from serving as an estate administrator or executor:

A minor (anyone under the age of 18)
A non-resident of the United States
A surviving business partner of the deceased
Any person deemed incapable of performing the duties of a personal representative

Does the Administrator Need to Be a Real Estate or Financial Expert?

No. The administrator does not need to be a real estate professional or financial expert. That is what your real estate agent and attorney are for. The administrator's primary responsibility is to assume fiduciary duty — meaning they must act with care, honesty, loyalty, and impartiality throughout the process. Leave the specialized expertise to the professionals you assemble.

How to Sell a Probate Property in Michigan: Step by Step

Once an administrator or executor has been appointed, the actual sale of the probate property in Michigan can move forward. Here are the key steps involved in a Michigan probate property sale:

Step 1: Property Appraisal

Before the property can be listed, it must be professionally appraised to determine its current market value. This step is critical in Michigan probate sales because the property must sell for at least 90% of its appraised value. Choosing an experienced local appraiser familiar with the Kalamazoo and Southwest Michigan market will help ensure an accurate and fair valuation.

Step 2: Listing the Property

Once the appraisal is complete, hire an experienced local Michigan realtor to list the property on the MLS (Multiple Listing Service). Your realtor should have specific experience with probate sales, as the process involves unique legal requirements and timelines that differ from a traditional home sale.

Step 3: Court Hearing & Notice of Proposed Action

When the property receives an accepted offer, a Notice of Proposed Action is mailed to all heirs of the estate. This notice outlines the terms of the proposed sale. Heirs have 15 days to review and respond. If no objections are raised within that window, the sale may proceed — sometimes without requiring a formal court hearing, depending on whether the probate is classified as formal or informal.

Step 4: Sale Finalized

Once the court process is complete and all parties have approved the sale, funds are disbursed to the seller, escrow closes the transaction, and the probate property sale is officially complete.

Step 5: Commissions Disbursed

As with any real estate sale in Michigan, real estate commissions are distributed to the buyer's and seller's agents at the conclusion of the sale. These commissions are paid from the sale proceeds before heirs receive their distributions from the estate.

Understanding Real Estate Commissions When Selling a Michigan Probate Property

It is important to understand how real estate commissions work in a Michigan probate sale, as this will directly affect the net proceeds distributed to the estate's heirs. Here is what you need to know:

Real estate agent commissions in a Michigan probate sale are structured the same as in any standard home sale
The total commission is typically split 50/50 between the buyer's agent and the seller's agent
Out of a standard gross commission of 6%, each agent typically receives 3%
Commissions are paid from the gross sale proceeds before heirs receive their portion of the estate
Everything in real estate is negotiable. Commissions are rarely above 6% and can sometimes be negotiated lower depending on the circumstances

Understanding the commission structure upfront helps all heirs and estate administrators set realistic expectations for the net proceeds they will receive from the probate property sale.

Need Help Selling a Probate Property in Kalamazoo or Southwest Michigan?

With the right knowledge, compassion, and an experienced team on your side, selling a home in probate in Michigan does not have to be as intimidating as it sounds. Assembling the right combination of an experienced Michigan probate realtor and qualified legal counsel will make all the difference in how smoothly and profitably the process unfolds.

Richard Stewart is Kalamazoo's trusted REO specialist with specific expertise in probate property sales across Southwest Michigan. Whether you need a free home value assessment, guidance on timing, or a step-by-step walkthrough of the Michigan probate process, Richard is ready to help you navigate every step with clarity and confidence.