Whether you’re buying a home for yourself or as part of a property management business, there are many homes for sale in California. With that in mind, you might think about buying a new property through a probate sale. Before you make any offers, it’s good to learn how buying a probate home works.
Listing a property
At first, there doesn’t seem to be much of a difference between probate and non-probate homes. Typically, an agent lists both types of properties. The difference is that the money from probate home sales go to the original property owner’s estate.
The bid submission phase
After listing a home in probate, it’s now time for the successor to begin accepting bids on this property. If this person receives an attractive offer, they’ll need to receive permission from the court to accept it. During this time, the court typically contacts the property owner’s beneficiaries to receive additional acceptance of a buyer’s offer.
Finalizing the home’s sale
Prepare yourself for a considerable wait after buying a probate home. In most cases, it takes six months to a year for this process to come to a close. If you remain the highest bidder and the court accepts your offer, you’re almost done with buying a probate home. Before this process is complete, you’ll typically also need to pay the estate’s executor. This fee is typically about 10% of a probate home’s price.
It’s good to be careful when it comes to buying probate homes. These types of homes are sometimes bargains. However, not having a seller to speak with about a property’s condition can be something buyers aren’t willing to deal with.