Things To Know When Buying A PROBATE Property
Have you ever considered buying a probate property, or does the idea seem daunting to you? In this video you will learn all the things to know when buying a probate property. I have experience in Probate sales and have obtained the Probate Specialist Certification from the Residential Real Estate Council. I’m here to offer advice, insights, and updates to help you make informed decisions, when it comes to purchasing real estate in Las Vegas.
Understanding Probate Property
• Probate approval is not needed if the home title is held in a Trust. If title is not in a trust, the court may need to appoint an administrator for the estate to legally sell the home.
The Pros and Cons
• One of the benefits of purchasing a probate property is that there is likely less demand from other buyers that don’t understand the process. This could bring a reduced price for the you.
• Some of cons is that Probate Court approval may be required for the sale, the approval may be a lengthy process and the Seller may be exempt from competing disclosures about the home.
The Legal Process
• Once the probate court has appointed an administrator the paperwork can be signed and the home listed for sale with a real estate agent and the administrator can accept offers. Please keep in mind that the attorney and heirs may want to review offers before acceptance. Response times on offers and during the transaction can take longer. Plan on at least 24 hours to a week for a response!
• Accepted offer will likely require Court approval. At the court hearing, the court will ask for open bids. Probate court is held on Friday mornings and there are generally investors at the hearing who will bid on these properties. It is recommended that you as the buyer be present to bid as well!
Financing and Cash Requirements
• You can write an offer contingent upon a home inspection, financing and appraisal. Please keep in mind that everything is still negotiable so the Seller may counter terms.
Assessing Property Value
• When determining value on these types of homes you will want to first take into consideration what market conditions are for the area. How many months of inventory are there? Once you have a general idea of value for the home then take into consideration the additional time, risk and unknowns with condition.
Working with Real Estate Professionals
• Probate sales are more complicated than the typical real estate sale. It is important that you use an agent who like myself is experienced with these types of transactions and specializes in probate sales.
• If you are involved in a probate sale, it is best to find a probate real estate agent or Realtor who fully understands the probate home sale process. Having handled these types of transaction over the years, I understand the importance of communicating with the Sellers of probate properties and helping walk buyers through the process. I am happy to work with you also!
Potential Risks and How to Mitigate Them
• The administrator of the estate may never have lived in the home and may not be aware of the history or condition. Also, the administrator may be exempt from completion of disclosures. I have dealt with Administrators that have never seen the home.
• I recommend making the inspection contingency begin upon acceptance of the offer. Completing inspections right away will allow you to negotiate a credit or repairs prior to court approval.
• Write all other contingencies such as financing and appraisal to begin upon court approval. This way you are not paying for the appraisal or other items prior to approval.
