What to Expect in a Probate House Sale
A probate house sale is when a property owner dies intestate which means the deceased did not leave a will that indicates what will happen to his property. Here, the probate court takes over and sells the property to the public. The revenue from the sale will be used to pay back the creditors the deceased owed and the rest will be divided equally among his relatives. There are many pitfalls when it comes to selling a probate house but it is a necessary process, especially when none of the relatives want to keep the house, and they do want to disperse the assets.
Before the probate sale, an appraiser appointed by the court will determine the value of the property. A local real estate agent will then be hired to facilitate the sale. The price of the house is determined by the appraisal with consideration to the suggested price of the real estate agent. After setting the price, the probate court will be petitioned to approve the incoming sale of the property. Once it’s approved, the documents that will be presented to interested buyers will be drafted. Finally, the house will be placed in a listing that the public will have access to.
People looking to buy a home are more than happy to look into a probate house sale because it implies a somewhat low price for a property. This is often true because even if the probate court wants to get the best possible price for the house, its value is usually relatively low due to decay and broken parts. Despite finding a buyer with a good bid, the court is not obligated to accept the offer yet. The price is presented to the beneficiaries and if they accept it, an auction will be held and the offer will be used as the starting bid. If not, the real estate agent will continue his search for a good buyer.
The auction is set by the probate court. It is petitioned and announced publicly in order to acquire more possible buyers for the house. The auction is scheduled only after 30 to 45 days to ensure that the property was properly advertised. Before the auction, the initial buyer would have already provided a 10% deposit. If on the day of the auction, he is out-bidden, his deposit will be refunded. If he remained as the highest bidder or the only one present during the auction, the deposit will be deducted from the total property price and the court will set the transfer of ownership as soon as possible.
After the sale is completed, the court will begin to pay the creditors then divide the remaining revenue among the beneficiaries. This is the general process of a probate house sale when administered by the court. It is undeniably long and tedious but the people involved has no choice but to sit through it because the alternative will be to completely disregard the inheritance—inheritance that can be used to pay off the beneficiaries debts.
In you are in Florida, talk to us at Probate Solutions FL and we can give you assistance as to what all of your options are. There is no obligation and we truly want to find the solution that’s best for you.