When someone dies with more debt than cash savings, assets such as their home can be sold to satisfy creditors. This is known as a probate sale, and it involves a large number of moving parts, such as the local probate court, executor, beneficiaries, real estate agents and interested buyers. Anyone is free to make an offer on these homes, but the process can be a little more complicated than a traditional sale. If you're looking for a probate home, foreclosure, or any type of property you can convert to rent, it's important to understand the ins and outs of estate sales.
Here's everything you need to know about probate sales.
What is a Probate Sale?A probate sale occurs when a person dies without creating a living trust for their assets. The house is then sold by probate and there are still probate homes for sale in Glendale, California, that need court confirmation as part of the sale process. The process notifies anyone who may be interested (potential buyers) or have an interest (potential heirs) to “speak now or shut up.”
How Does the Process Work?The estate representative will hire a local real estate agent, sign a listing agreement, and show the property just as they would with a traditional listing. The next step is to list your property for sale.
Offer must be accompanied by a 10% down payment, usually in the form of a cashier's check. The goods rep can accept the highest bid, but that doesn't mean the sale is official. The court must decide whether to accept the offer at a confirmation hearing, which may take time to schedule.
What Are the Benefits of Buying a Probate Home?The main advantage of buying a home in succession is that they typically sell for less than other homes in the area. Legalized homes are marketed and sold just like traditional properties, usually with real estate agents listing them and showing them to potential buyers.
What Are Some Common Misconceptions?One of the biggest misconceptions Davies sees is that people confuse estate sales with real estate sales.
It's important to remember that the property will be sold only after court confirmation, as it is in the process of probate.
What Should I Look Out For?Try not to invest all your money in this house and look for other ways to generate income in the meantime. An estate sale can take 1.5 to 3 years to close. Instead of biting more than you can chew, try to leave some of the work to professionals who are qualified to take on certain jobs related to the probate process.
What Else Should I Know?Be sure to inform the buyer about the matter that the property will be sold only after court confirmation, as it is in the process of probate. A loan financing contingency would normally protect you from having to continue with the purchase if you couldn't get financing for a traditional sale. Now that you know how to legalize a will in New York, you know the importance of working with an experienced real estate agent.
Whether you're looking for a probate home, foreclosure, or any type of property you can convert to rent, Mashvisor is here to help.