Things You Must Know About Probate House Purchases

If you have dabbled with real estate purchases before, you should have most likely come across the term ‘probate sale’. Properties that get sold through a probate court are invariably great deals, since they are usually priced lower compared to other similar houses. However, there are certain risks and/or drawbacks attached to the deal that probate house buyers should be wary of. For instance, probate sales may take longer to conclude than regular real estate transactions.

Why Homes Get Sold Via a Probate Court

Homes usually come to a probate court when an individual dies without bequeathing his/her property. In such a case, the state takes up the matter and oversees the property’s sale. To make sure the property is being sold at its best possible price, the court adheres to certain steps, procedures and processes. Probate laws vary across states – a capable real estate agent must have sufficient knowledge about probate sales’ ins and outs in various states.

Probate Sale Marketing

Probate sale properties are marketed like every other real estate property. The estate representative would get a local estate agent on board, sign the agreement for listing, and exhibit the property, similar to how things work with a traditional listing. Typically, list prices are based on the suggestions of a listing agent and also a court-ordered or issued independent appraisal.

Making an Offer

Interested house buyers could come up with an offer any time. But, as far as probate sales go, buyers should make an offer and also remit a 10 percent deposit. The real estate representative would then counter or accept the offer like every other sale.

Also, the offer must be confirmed by the court. The seller could have accepted the buyer’s offer, but that doesn’t mean the seller has committed to that offer or buyer. Through their probate lawyer, the estate representative would petition the court for sale confirmation. A later date is then chosen for the court to confirm the sale.

The Waiting Game

Once the date of sale has been determined, the parties would have to wait for at least 30 days. During this period, the court asks for the property to be advertised and marketed properly with the freshly accepted price. If a higher offer comes through, it becomes the property’s new probate price.

Going to Court

To confirm the sale, the court wants the new buyer and any other party interested in the property to come to court for sale confirmation. The property is later sold through auction with the starting bid being higher than the current offer price. The highest bidder bags the property at the end of the process.