What Is a Probate Real Estate For Sale

Estate sales may or may not be appropriate depending on your property situation and goals, as an estate sale specialist agent should have experience handling specific disclosures while explaining processes in clear language.

After someone dies, their estate must go through probate — a court process used to assess value, pay debts and distribute property – which may take months before completion.

The Process

Probate is a court-supervised process to transfer ownership and pay creditors following death. Although costly and time consuming, probate may provide limited protection from creditors who attempt to liquidate estate assets to cover their debts.

Executors of estates typically conduct an appraisal and select an experienced real estate agent with expertise in probate sales to list the home for sale and notify potential buyers of the opportunity to bid on it.

Once an offer has been accepted, the executor must file a petition with the court requesting confirmation of its sale. A confirmation hearing will then be set so additional bidders may compete against each other to purchase property through probate; once approved by a judge, escrow will close shortly afterwards. The probate real estate purchases often offer better deals than conventional real estate transactions and thus attract investors and homebuyers alike; however, their process can be complex and requires careful guidance in order to be successful.

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Finding a Property

At present, many investors and home buyers are turning their focus toward probate properties due to their lower selling prices compared to comparable homes nearby. However, the process for purchasing probate property differs from traditional sales transactions.

Hire a real estate professional familiar with probate sales and trust sales transactions to ensure a smooth experience. These types of transactions often include unique language and disclosure documents that set them apart from regular real estate sales transactions.

Locating probate property can be accomplished via local auctions, real estate websites that list probate properties, searching obituaries and public records searches. Assets held within revocable living trusts often bypass probate altogether and allow faster sale. Probate processes depend upon state and local laws for how long the proceedings last before final disposition.

Buying a Property

Depending on the state, probate real estate may be available for sale through local real estate brokers or public records. Another way to locate probate properties for sale is searching obituaries to see whether deceased have left any properties behind.

After someone passes away, any assets not owned jointly with another or subject to a transfer on death deed become probate property and must go through probate proceedings. This may include household goods, cars and even homes.

Once an executor or administrator notifies creditors that there is probate property for sale, they can list it with a real estate agent who will then market and show it to potential buyers. Once an offer has been made and submitted for court approval, proceeds from the estate can then be used to settle debts as well as distribute any remaining assets to heirs.

Selling a Property

When an heir wants to sell the property they inherited, typically through probate sale is their only option. An executor or administrator of the estate works with a real estate agent and their list price for it, often below market value. They often hire a New York probate attorney as part of the process to help manage it all effectively.

Once an offer has been accepted on a property, all heirs will receive notice that will give them 15 days to object and if no objections are lodged the sale will go through in court.

Probate properties offer great opportunities for investors, often selling at prices well below market value without needing improvements before moving in. While probate sales may take longer than other real estate sales transactions, investors should remain patient when searching for these bargains and remember that all creditors will be paid from liquid assets of an estate if any sale falls through.

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