Buy some of the properties that are left after the death of an individual.
The properties are often sold below market value to property investors and potential homebuyers.The process of purchasing these properties can take a long time.The process of court approval for your purchase, as well as where to find these properties, should be understood before buying a probate property.
Step 1: Call local real estate agents.
Local real estate agents may have listings for probate property sales.The person in charge of disbursing a person's goods after they die will hire a real estate agency to handle the marketing and sale of the property.Explain to your real estate agents that you are interested in buying a property.Do you know if they handle probate properties?A good real estate agent will be able to guide you through the process of buying and selling probate properties.Tell your agent how much you are willing to spend and the type of property you want to buy.
Step 2: Call your local court.
If you go directly to the court, you can speak with the clerk.If there isn't a specific clerk assigned to the court, ask to speak with a staff person who handles the cases.You can request a list of individual cases.You can check the court's online docket or ask the staff person if any of the cases remain open.The staff person can show you how to check the docket electronically.Request the inventories for the open estates after identifying them.When an estate goes through a court-supervised process, the executor is required to take a complete inventory of the property and file it with the court.If you want to buy property in an area that you like, contact the attorney for the estate.The case docket sheet has their contact information on it.If you want to know the status of the property, how they are handling the sale, and whether an asking price has been established, you should contact each representative directly.If the court approves the asking price, they may negotiate with you directly.
Step 3: A public auction is a good place to buy property.
Farm properties are more likely to be sold at an auction.A number of buyers may show up to bid on one or more properties at a public auction.If you are interested in buying a property that can be acquired at a lower price, you should not go to an auction.Property that is sold at an auction usually sells for more than the fair market value.
Step 4: Local newspapers to review.
A variety of information can be found in local newspapers.Obituary notices, published notices to creditor, and Notices of petition to administer an estate to be probate are included in the local newspaper.Real estate is included in some of the documents that direct you to current estates.You can request an inventory of the estate by following up on the notices in the local paper.
Step 5: There is a lengthy sales process.
You should be prepared for a lengthy process after you identify a property you are interested in.It can take at least six months to purchase a probate property.If you have a hard time moving into a property, it may be better not to purchase a probate property.
Step 6: An offer should be made.
You can make an offer on the property at any time.There are specific requirements for probate properties that are not typically required for regular real estate.You have to deposit 10% of the offer price in order to make an offer.A counter offer may be given by the representative of the estate.The offer is only a partial acceptance until the court confirms it.If the court does not confirm you as the buyer, you should be able to get your 10% deposit back.You will lose your 10% deposit if you don't move forward with the purchase on your own.Your deposit will go towards the purchase of the property if you are approved as the buyer.
Step 7: Ask for an inspection
If your offer is accepted, you should have a home inspection.Family members selling a property don't always know about the problems with the property.If you have the home inspected, you will get a better idea of the problems with the house and whether the value is less than you thought.It is important to note that some sellers may refuse an inspection and that you are purchasing a home without any warranty from the seller.You will have to decide what is in your best interest if the home is found to be in dire need of a significant investment.You will lose your deposit if you withdraw your offer.
Step 8: You should move forward after the offer is accepted.
The sale can be confirmed if the attorney for the estate applies for a court date.The court date is usually between 30 to 45 days after the application is submitted.The court requires that the property be advertised with a new price.California requires that the new price be marketed to the public as 5% higher than the offer.Real estate agents can still show the property to potential buyers even after the court date has been set.
Step 9: Attend a court hearing
To confirm the sale, you must attend a court hearing along with any other buyers interested in the property.The court will identify the property you made an offer on and then conduct an auction style bidding process.The court will most likely confirm your offer if there are no other bidders.
Step 10: They outbid other buyers.
The court will raise the price of the property at anIncremental rate until a final bidder is left.The process is referred to as overbidding.If a final bidder outbids everyone else, you have the right to continue bidding on the property.The court can either raise the price of the house by $5,000 or use a more complicated formula.The minimum overbid may be set by the courts as 10% of the first $10,000 plus 5%.In order for an overbid to be successful, the overbidder must give the court a cashier's check for at least 10% of the price.Before attending the court hearing, those who intend to engage in overbidding must set a top amount that they are willing to pay and have a cashier's check in that amount.If you placed the initial bid on the property, you should bring a cashier's check with you to the court hearing so that you can engage in the bidding process if necessary.The court will not confirm the purchase of the property if an overbidder fails to have the correct payment.
Step 11: Make sure the purchase is final.
Once a bidder is confirmed as the purchaser, they need to demonstrate that they have the financing to purchase the property.The buyer would sign a contract with the estate court.All funds would be transferred to the estate and the buyer would become the new owner of the property.The process may take about 30 days.