Real Estate Woes: Selling A House Through Probate
Every active real estate agent will go through selling a house through probate. This happens when a person dies intestate or without leaving a will that indicates how he wants to divide his property. Because there is no executor to entrust the division, the probate court takes on the responsibility of selling the real estate property. The revenue will be used to pay off creditors owed by the deceased individual and the remaining amount will be divided among relatives who believe they are entitled to some of the assets. This can be a good transaction for an agent because most probate houses are priced low and appealing to some buyers. Unfortunately, it has a higher risk and inconvenience compared to a traditional listing.
When selling a house through probate, it is done in the same manner as any other property. The court will employ the services of a real estate agent and it will be put up in the market. Contrary to popular belief, the probate does not just want a quick sale but actually tries to ensure that the house is sold at the best possible price. This is why it also pays for an independent company to appraise the property. Like other houses in the listing, there is no guarantee that the house will be sold as soon as it goes on sale. In worse cases, the sale can take as long as a year despite the house already below the court approved price.
Interested buyers can give an offer for the house but it will not be automatically accepted. A court date must be scheduled to review the offer. Once the court is satisfied with the price, it will then market the probate house under the new price in order to get more potential buyers. After 30 to 45 days, the interested buyer and new potential buyers will come to probate court to bid on the house. The starting bid will be the initial accepted offer. On good days, there will be multiple buyers and the price will go up on every bid. If only the initial interested buyer shows up, he will get the house. If another buyer was able to out-bid the first buyer, then he will get the house after immediately handing the 10% deposit.
Real estate agents who are selling a house through probate are fully aware of the risks it necessitates. Because the owner of the house is deceased, there is usually no one who can disclose the work done on the property, if there are doors, windows or floors that need to be repaired, etc. All of these can negatively affect the value of the whole property in the future. Thus, agents instruct interested buyers to pay for an inspection before placing an offer. If they don’t and they get the property after the auction, they may suffer greater losses that go beyond the price of an inspection.
If you are in Florida and are selling a house through probate, speak with us at Probate Solutions FL. We love to help families find the best and easiest solution for them that are going through such difficult times. We can make you a free, fast, no obligation, cash offer to purchase your property and help guide you through the process. Contact us now.