Is A Probate Home Right For You?
In the hunt for your next home, it is important to consider a wide range of houses for sale. One type of home is usually overlooked by buyers, and for many, this could mean a missed opportunity. Probate properties offer a chance to buy the home of your dreams. Before buying a probate property, here is what you need to know.
What Is a Probate Property?
Ideally, when a person dies, he or she has an estate plan that lays out how his or her property should be distributed. When a person fails to do this, the state can take over the property and decide what happens with it. In some instances, the state places the home on the market.
The home is placed on the market just as any other home would be. A realtor is contracted to sale the home and he or she will be responsible for showing the property to interested buyers.
Why Should You Bid on a Probate Property?
One of the benefits of buying a probate property is you can possibly save money. If the heirs to the estate are interested in closing the deal quickly, they might not want a drawn bidding price. As a result, if you are able to make an acceptable offer on a property soon after it comes to market, the heirs and court might be willing to accept it and you can score a deal on the property.
There is a downside to buying a probate property though. The process can sometimes be extremely slow. Not only do you have to submit your proposal to the court, you have to wait on the approval from a judge and other interested parties. You also have to make an appearance in court to complete the purchase of the home.
How Can You Start the Process?
If you have found a probate home on which you want to bid, you might be required to provide a deposit in addition to your down payment. The amount of the deposit required can vary by state. Check the state laws before making your bid to ensure you have the funds available.
Once you have submitted your offer, it is a waiting game. It could be weeks or longer before the court approves your application to buy the home. Depending on the state in which you live, the home might stay listed and open for bids while you are waiting for a final approval. If that happens, you could be forced to raise your bid to beat out a competing bidder.
To determine if a probate home is right for you, consult with an experienced real estate agent or company such as Roger Deines Real Estate Group ReeceNichols.