Probate

What is probate?

• An estate attorney or representative has to sell the property in order to liquidate the asset and distribute the money to family members.
• Since a court has to supervise and approve the home's sale, the process is more complicated—and lengthier—than usual.

How does a probate sale work?

In a probate sale, the estate attorney or other representative hires a Real Estate Agent to post the listing and sell the home.

• Don't expect the estate owners to make any repairs before you purchase the home; what you see is what you get. Probate homes are typically sold as is.
• If you decide to make an offer, it must be accompanied by a deposit totaling 10% of the price of the home.
• Once your offer is accepted by the estate's representative, the estate attorney has to petition the court to approve the sale. And as you might expect, courts move at their own pace; expect to wait 30 to 45 days (or even longer) for your day in court.
• The sale, together with the accepted offering price, is advertised for a statutory period in a local newspaper.
• Once the court date arrives, prepare to bid against other buyers for your home. The minimum first overbid price is the amount equal to the accepted purchase price of the accepted offer, plus five percent of that amount, plus $500. The court then determines any further incremental overbidding amounts - for example, $1,000 or $2,000. The bidding stops with the final bid.
• Any person who bids in court must make an unconditional offer (i.e., obtaining financing and approving inspections should not be a condition of the offer) and, if confirmed, must present a cashier's check or deposit for 10% of the purchase price.
• If the court confirms the sale to an overbidder rather than the original buyer, the original buyer's deposit is refunded. If the sale is confirmed to the original buyer, the deposit is applied to the purchase price.
• The accepted purchase price must be at least 90% of the probate referee's appraised or re-appraised value of the property.

Who is probate best for?