What to Expect when Purchasing a Probate Property and How to Purchase them

by Jun 22, 2020

Probate is the process where beneficiaries legally obtain homes from the will and pay off balances of the estate. If a certain manor is not probated, the inheritor will not be able to have a legal authority to access, sell or transfer these assets. Probate homes are those that are owned by deceased owners. These cases are sold below the market value.

How do you find them for sale?

You can contact your local agent and explain that you want to purchase a probate property. Check if they are taking care of those. The agent advises when those houses are coming available and will give you tips through the acquisition process. You have to give a detailed description of how you want to acquire the property, what kind you are interested in and what price range you can afford.

One of the most direct ways to identify estates is to go to your probate court. A list can be requested for cases filed within the previous six months. You zoom in for those near your area, and if the landed estate is available for an investor. Once you find a favorable place, you contact the executor and ask for the status of the property. Ask how they are planning in selling it and whether there is an asking price. If it is ready to be sold then a negotiation be done directly, if the court has already approved the asking price. Assets sold at public auctions like farms can be considered, but be cautious since these parcels are mostly sold at or above the market price. Buildings sold at these auctions would sell at or above market value since a number of buyers will show up to bid on one or more estates. Acquiring it a lower cost is impossible.

Check the local newspaper for any listing on these houses. Take a moment to look Obituary notices, published notices to creditors, and petitions to administer a property to be probated. Follow up on any of those notices at the probate court and request for the inventory.

How do you proceed with purchasing a probate property?

Once you find a suitable property, you must understand that the process may take a longer compared to buying an ordinary house. The process is may take six months to years, depending on how soon the judge approves the price.

The attorney of the testamentary applies for a hearing date for the confirmation of the sale, which is between 30–45 days from application. It is a requirement, by court, that the property is advertised with the new accepted price. Agents continue to look for buyers with higher price offer, even after the date is set. When the date comes, you must attend the hearing, together with the buyers who are interested. An auction will be conducted if there are many buyers interested. The tribunal will confirm your offer if you are alone. After the bid is confirmed, you have to show that you are financially stable to move forward with the purchase. You will then sign a contract with the courtroom. The buyer and the seller will close on the real estate transactions, and this process may take about 30-45 days from court hearing.