When shopping around for a new home or real estate investment there are lots of different things you might see. Open houses are common, where you can walk through and tour the house. Some houses get auctioned off for various reasons. There are also probate sales. But some people when first looking into real estate for the first time have never heard of a probate sale, or probate house. Generally at a lower price, people want to jump on the deal, but understand the catch.
Probate sales occur when someone dies, but they didn’t have a will, or leave the house to anybody. So instead of the house sitting abandoned the state takes the property and handles the sale. Probate court, the people who handle the sale of a probate house, aren’t looking to profit from the house. So they generally list the houses at quick to sell prices. These prices can range from fair, all the way to under typical market value. There are rules, guidelines, and probate law that helps determine what the property will be priced at. These laws vary from state to state however.
When it comes to marketing a probate house, they will show up as just any other property. The price is recommended by the listing agent, or an independent appraisal of the property. You can Sell Probate House fernandina beach fl like any other property for the most part. The offer must come with a 10% deposit, and is subject to counter offers.
So probate sales are normally good deals when compared to the market. But there is a caveat. Once an offer is accepted, you have to wait at least 30 days. The court will take that time to advertise and market the house for that new price. Depending on the state, the new listing price will be the accepted offer and a raise of 5-10%. There is then an auction process that proceeds it. Any interested parties must go to court on a specific day and bid on the property. Generally the bidding can go up $5k at a time. If lot’s of people come to bid on the home, the original offer most likely won’t hold. But if nobody else bids on the house, the original offer is accepted. The 10% deposit is expected immediately after the bidding has proceeded.
Even after the whole auction process, probate houses can still be deals compared to similar homes on the market. However there are a few things to be aware of. Always with probate houses get a thorough inspection done. Due to the previous homeowner being deceased, there isn’t anyone to tell you about the possible issues that are going on with the property. An inspection is the only way to combat this. Even though you may not get the house, or get outbid, not paying to get an inspection is pretty much a gamble.
Overall probate sales can seem daunting at first. However a good real estate agent can help navigate you through the process. With probate sales always get an inspection. It help mitigate the risks that often associated with probate sales.