How Buying Probate Real Estate Sale Works
Buying a Probate-Trust Real Estate sale differs in many ways from a traditional real estate transaction.
We here at HistoricPhoenixDistricts.com represent buyers who are interested in purchasing a home for sale that is in the probate courts and may need court approval. Probate properties are usually owned by the estate of a deceased homeowner and are often sold below market value to property investors and potential homebuyers. If you’re needing a licensed real estate agent and for information on selling a probate home, click here.
Why a Home is Sold Through Probate Court
A home is sold in probate court when someone dies intestate or without bequeathing their property. When that happens, the state takes over and administers the property’s sale.
The court wants to be certain the property is marketed and sold at the best possible price. To ensure this, the court requires certain steps, processes and procedures be followed. Probate laws can vary from state to state
While buyers may be drawn in by the budget-friendly price, probate homes are not for everyone, starting with the fact that the homes are typically sold “as is” with no repairs. Usually, the estate doesn’t have an interest in renovating the property, either because of logistics, timing, or available funds. If you’re buying a home that’s a probate sale, it doesn’t mean you should forego a home inspection and appraisal.
Quite often, the probate home for sale is already pre-approved by the courts and the closing can happen very quickly.
If the home does not not have pre-court approval for the sale, which many do, you may have to wait a little longer than your traditional purchase time-frame. If that’s the case, once your offer is accepted by the estate’s representative, the estate attorney has to petition the court to approve the sale. As you might expect, courts move at their own pace and you can expect to wait 30 to 45 days (give or take) for the day you can claim your home.
Playing the waiting game isn’t the only frustrating aspect of probate sales. In certain states, even as your offer is making its way through the courts, the home can possibly remain listed and be open to other bidders who may be allowed to show up at your hearing and outbid your offer.