Probate Sale- What is it and how does it work
When a person dies, he/she may create a will to do away with their property. But, nowadays, we see several cases where the deceased has not created a will for his/her property. Here is where Probate Sale comes in. Here, we will be taking a look at the property transfer process, what is the importance of a Probate Sale, and whether one should purchase this type of sale.
What is a Probate Sale?
Probate Sale comes to the forefront when the owner dies without conducting a property transfer. In such cases, the property sale process is completed by an estate attorney who is tasked with the job of selling the property. The property sale is distributed to the heirs on successful payment of the taxes and debts.
Probate Sale is often a lengthy process as the entire selling process is supervised by the court who is in charge of approving the transaction. This becomes quite a hectic task. Many people hire estate attorneys to handle this process and thereby making this process quite effortless.
How does a Probate Sale Work?
Hiring a real estate agent is the first step for a Probate Sale after the listing, showing, and selling of the house. This process is quite lengthy. So, it is our valuable advice that you hire someone who has some experience in Probate Sales.
Once there is an offer for the Property Sale, it is up to the representative whether or not they would accept the offer. The court normally takes up to 30 days to approve property sales.
Is it okay to purchase a Probate Sale?
A Probate Sale isn’t for everyone. If you want to understand whether Probate Sale is the right way to go for you, you need to first decide whether getting a good deal is more important or getting a house is more important. In most of the property transfers, the probate sale houses sell for a lower market value.
The repairs and renovations involve a huge sum of cost and also consume a significant amount of time. This becomes a deciding issue if one should pursue a property sale in a Probate Sale. If time and money are not your concern, then Probate Sale might be the best option for you.
The very appropriate way to sell the property of the deceased is a Probate Sale. Unlike a regular sale, it is a very long and very complicated process. When compared to a regular sale, it is a very long and complicated process. Understanding how this works is quite essential, no matter whether you are on the buying side or selling side of the transaction.
How to spot a Distressed Property?
It goes without saying that a Distressed Property is very attractive to real estate investors. But, you need to know beforehand what to look for and where. Here’s how you can spot a Distressed Property.
(1) Take a Drive: An old-fashioned drive-by may not be the most efficient but it can surely be the most effective. When you drive around, you can spot potential Distressed Property that other investors could simply miss out on just because they aren’t investing much time and effort required for the task.
(2) County Tax Records: Property Tax Records are public information on many country assessor websites across the country. As a general saying, if a homeowner is unable to pay their taxes, it becomes a Distressed Property. Unpaid Property Taxes are also an indication that the property owners may be delinquent on their mortgage as well.
(3) Property Auctions: If a lender forecloses on a home and is unable to sell it directly, REO property is often sold at auction. You can find advertisements for property auctions in your local paper and also on real estate auction websites.
(4) Probate: The assets and debts of a deceased are dealt with by the Probate Courts. It is the responsibility of the Probate Judge to make sure that the creditors of the deceased are paid and any remaining assets, such as real estate, are properly sold or distributed. If it is a Distressed Property and requires a lot of work, the heirs may be willing to sell it to a real estate investor at a very fair price.
(5) Networking with Lawyers: Another great source for locating a Distressed Property is the lawyers who specialize in the area of real estate foreclosures, family, or probate law. Yes, it takes time to build a relationship with an attorney, but it is definitely worth the effort. On networking with lawyers, you get the inside track to finding a Distressed Property coming available on account of a divorce or a financial crisis.