What is Probate in Real Estate?
Probate real estate selling is a combination of court-regulated steps that must be managed and monitored by professionals who know the process. Dealing with lawyers, court order and strict schedules can be unforgiving. Having a knowledgeable real estate representative when buying and selling probate homes is a must because the documentation, language and process are different from a normal home sale.
A probate sale usually happens when someone dies without a will. As a result, the state takes over any property owned by this person and sells it through court. The remaining of the proceeds from selling the deceased homes goes to pay off creditors or to distribute between family members.
Typically Real estate agents who have experience in the process are the best start in getting the property sold through court. They can become Administrator or Executor of the estate by being appointed. They will list the home in the MLS while the court starts the process, orders an appraisal and sets a court date. The other option is to sell it to outside investors who will also continue the process through court as well. Any interested buyers can show on court date and submit their bids. The highest bid usually wins. Despite the bid process, probate homes are usually selling at lower prices compared to regular home sales in the area.
Buying probate homes can be more difficult than a normal purchase. It can take longer than normal purchasing time. Also, most of these homes sell at “as is” condition with sometimes no disclosures. Added costs can occur as the buyer needs to hire a lawyer for the process.
At Titon Realty, we assist both homeowners families and investors alike. We have the knowhow, and lawyers who can help make the sale or purchase a smooth process. When accepting a purchase price the price must fall within the 90% of the appraised value and above. After the acceptance the heirs have 15 days to review the notice and object if they want. If no abjection, the estate attorney will proceed with the sale and sell it to the highest bidder.
Get a Quote
Find Solutions for all of your Real Estate Needs