Guide on How to Buy Probate Property
The Beneficiaries of the Estate
Once you know how to buy probate property, you’ll know that you’re often helping the family members and other beneficiaries of the estate. The beneficiaries may have to pay off a significant amount of debt with certain assets, and the greater the debt, the larger the asset a beneficiary might put up for sale. There are multiple steps you should follow when learning how to buy probate property, and there are certain facts you should know before even considering to buy probate property.
Laws Surrounding Probate Sales
Different states have different laws concentrating on the sale and buying of probate property. In order to know how to buy probate property, you should be aware of the following procedures:
1) When making an offer on probate property, you must include your intentions for financing options if you can’t pay the amount in full. You should also submit requests for inspections if the estate property is old enough.
2) When submitting an offer for an item of the estate, you must deposit at least 10 percent of the final purchase price as a down payment. If you are outbid in court, you’ll have the deposit returned. However, if you obtain rights to the property and default on payments, the original beneficiaries can take back the property and keep the down payment you offered.
3) Once you have filed a petition with the probate court, you normally have to wait three to six weeks. Within the waiting period, you must generally wait for an advertisement of the sale and purchase price to run through the local newspaper or similar type of media for a certain amount of time depending on the state’s laws.
4) Once your petition is filed and you go to the court hearing, you may be faced with overbids on the property. There are regulations to making an overbid, but if you make the highest bid, you receive the property and immediately make a payment of 10 percent of the value unless you were the original bidder.
Tips on How to Buy Probate Property
Apart from the laws that vary from state to state listed above, you should also consider some tips on how to buy probate property. There are numerous tips for buying estate, and some of the tips may result in a better price.
If you’re looking for a really good deal on probate property, you should contact the executor or the estate directly. If the property has already been disbursed to the heirs, you should consider contacting them directly too. If the executor or heirs are considering to sell the property directly, they are often looking for a quick sale in order to pay back debt.
More Expensive Options
Estate property isn’t always easy to come by, but you can usually find probate property at a public sale or property auction. These options are often much more expensive, and if the sale occurs in a property auction, the estate item may even sell for more than the market price.