Understanding a home sold through a Probate Sale
There are so many ways to buy a house at a cheaper price compared to other houses in the market. One of the things that you can do is to look for a probate sale. But what is it? This type of sale means that the homeowner has died without passing their property to an heir. Having said this, the estate attorney has to sell the property to liquid the asset and distribute the proceeds to the family members.
Selling a Home on Probate
Probate sales are very appealing to buyers because they are usually priced below the market value and typically investor friendly in which cash house buyers will bid for the property. However, since the court needs to supervise the approval of the property’s sale, buying a house on probate can be very complicated. It is therefore important to understand how it works. Selling a home fast on probate is administered by the estate attorney. The attorney hires a real estate agent to post the house in a market listing. While many people are drawn to such cheap property, it is not for everyone. It is also important to take note that the estate does not have any interest in renovating the property thus make sure that you do a home inspection before buying a house. _____________________________________________________________________________
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How to Make an Offer
If you want to make an offer on a property that is under a probate, you need to make an offer accompanied by a 10% deposit. Only then will the estate representative accept your offer. The offer needs to be subjected to the confirmation of the court. Then it will be confirmed on what kind of offer it may be such as as cash home buyer offer or buyer through a real estate agent. Take note that while the seller may have accepted your offer, the seller is not committed to your offer as the listing is still open to welcome other bidders. The estate attorney will petition to the court in order to confirm the sale before a future date is selected for the sale to be finally confirmed by the court.
The Disadvantages of Buying Such House
Once your offer to buy the house is accepted, the estate attorney needs to make a petition to the court to approve the sale. And as you can expect, the court can sometimes be slow in approving the petition. Give it at least 30 days of court working days before you can claim your home. Another disadvantage when buying a house on probate sale is that even if you have made the offer and that the estate attorney has already made the petition to the court, the house can still remain in the listing so other bidders are still allowed to outbid your offer. This creates uncertainties for all potential buyers. Because of this caveat, the 10% deposit that is part of the requirement when making an offer is non-refundable. This is something that you have to deal with. And since the seller is deceased, you have to incur the cost of the repair of the property. Sometimes, the repair needed is minimal while there are times when major repairs are needed.
Should You Buy A House on Probate?
Should you buy houses on probate sales or should you just buy a regular house? If you are looking for an extremely cheap house and you have a lot of flexibility and patience to pursue such sale, then this option is for you but if you want to own a house faster without any curveballs, then you are better off looking for conventional houses. When you have purchased your house on a probate sale, ensure that you make the necessary repairs to improve its market value as well as pay your real estate taxes regularly. The thing is that you don’t want to incur delinquent taxes and encounter problems with the federal government.