What is a probate sale? The Risks of Buying an In-One Home

Real estate purchased in probate carries more risk than many people think.

The legal process of probate is used to transfer ownership after a person dies. The court will usually appoint an executor of the estate to supervise the transfer of the property.

The sale of property by an executor in probate is called a probate sale.

Investors and buyers who are looking for a good deal frequent probate sales because property in the probate process is usually cheaper than conventional property. The cheaper price comes with some trade-offs.

The court is often involved in probate sales, which can take a long time. The home may also need to be repaired, as estate administrators usually sell probate property “as-is.”

Before you make an offer, carefully weigh the advantages and disadvantages. It is best to work with an agent who has knowledge of probate property. The sale may not be successful if you do not follow the probate rules.

What is a probate sale?

A probate sale in real estate is the sale of the home under the supervision and control of the probate court. This usually happens when the homeowner has died without a will or beneficiary deed to direct how their property should be transferred to the heirs.

Probate property can be sold with restrictions on real estate .

What is the difference between a probate sale and a typical real estate sale?

The main difference between an estate sale and a real estate transaction that is typical is the court involvement. This can cause additional steps to be taken and delays in closing.

What happens when property ends up in probate?

A will is usually left behind by a deceased person, which specifies how to dispose of their possessions and property. Sometimes, though, the terms in a will can be unclear, or the deceased person may have died without one. In such cases, the court will get involved and the property is placed in probate.

Should You Purchase a House that is in Probate Court?

Pros	You can also find out more about Cons
Prices are usually lower There is less competition as fewer buyers are interested	Legal rules that must be followed Longer closing period As-is homes are sold as is and may require repairs

The probate sale can be an excellent way to save money in a highly competitive market. However, they can also take longer due to the specific rules of law. The court might need to hold an hearing and review your offer before approving the sale.

Expect a longer timeframe

It may take several weeks longer than a regular sale for the court approval, or even years if there is a long-running court battle. The length of a probate auction depends on a number of factors.

Supervision:If probate is not supervised, the court has less oversight. A supervised procedure can be slower because it requires more court involvement.
A unclear will:A messy estate may also be caused by a will that is unclear or absent.
Disagreement between heirs The sale can be delayed If the property has several beneficiaries , and they cannot agree whether to sell it.
Liens on property: You can expect that the sale of the property will be delayed until the liens are removed.

There’s less competition

There are typically fewer buyers interested in buying probate homes, which means you will have less competition if you find one that you like.

Although prices are lower, don’t underestimate the cost of repairs

Probate homes are usually (but not always) cheaper than other houses, because they’re sold “as-is” and may need repair. You may have less competition if fewer buyers are willing take on these projects.

However, don’t expect a significant price drop. Some states require that homes in probate be sold for at least 90 percent of their appraised value.

What is Probate Property?

Find Probate Real Estate

Search Multiple Listing Services. Find probate properties in your local multiple listing services (MLS) as well as listing sites such Zillow and Realtor.com. You can still search for specific keywords, such as “probate”, within listings.

Word-of-mouth. It’s worthwhile to have a realtor on your side, if you are specifically searching for probate estates.

Check the obituaries. You may find it morbid but online obituaries in the area where you are interested in purchasing property can help you locate probate sales. Check local newspapers to see if there are any notices of creditors. This will give you an early start in finding property before it is listed for sale.

Working with an agent to navigate the sale in compliance with local law

It’s risky for you to buy a probate home on your own if you haven’t done it before. You can get help from an experienced agent in probate sales.

Search for the perfect property
Be aware of any restrictions on sales or additional legal steps
Offers must comply with all restrictions
Close the sale at a price and terms that you are comfortable with

You can offer to buy a property that is in probate, just as you would if you were buying a house on the open market. However, there are some circumstances you may need to be aware of before purchasing a home. You should work with an experienced real-estate agent and the executor of the estate to ensure you cover all bases.

An agent will know, for example, if the property has a higher earnest money deposit requirement or does not allow contingencies. If contingencies are not included, you may be obligated to purchase the home even if the inspection reveals termite damage.