If you’re reading this article, chances are you are dealing with the probate process. A probate sale can seem like a daunting process as it involves attorneys, the court system, and other scary sounding things. The truth is that a probate sale can actually be a relatively easy process when you partner with a professional home buyer. In fact, at LEDGE Real Estate Solutions, LLC, we have even covered client’s attorney fees during the probate process.
In this brief article, a real estate investor with LEDGE will walk you through the probate selling process and explain how we buy houses.
What’s Probate?
When the owner of a home passes away and they did not leave a will or appoint an heir, the property gets tied up in the court process known as probate. The court will select an executor (either appointed through the will or the closest relative to the deceased) who takes on the responsibility of selling the property. After the home is sold, the court will take the proceeds from the sale and essentially divide those assets between all of the beneficiaries.
How Do You Sell the Property?
The executor must have the property appraised before they can sell. After the appraisal, they will need to sell the property for at least 90 percent of the value of the appraisal. The property can be either listed for sale through an agent or broker or be purchased directly by a real estate investor. The downside of listing the home through an agent is that there will need to be capital invested into marketing the house, the executor will then need to wait for a buyer, and the agent that works with the executor will then collect their commission on the sale. When you work with a professional home buyer, they can speed up the selling process by making an offer in as little as 24 hours.
What Happens When You Find the Right Offer?
When an executor accepts the offer, the investor puts down a 10 percent deposit on the total price they offered. A Notice of Proposed Action is then sent to the beneficiaries stating the terms of the proposed sale. The heirs have up to 15 days to review the sale and make any objections. If there are no objections, the attorney of the estate applies for a court date and the sale is executed. At the court hearing, the accepted bid is presented and any interested party has the opportunity to outbid the previously accepted offer. If there are no bidders during the hearing, the accepted offer is finalized and the beneficiaries divide the proceeds. If another party does outbid the original bid, the original investor will have their deposit refunded and the new bidder will close on the home.
Speeding Up Probate
The formal probate administration typically takes a minimum of six to nine months to sort out the estate, select an executor, appraise the property, find a buyer, apply for a hearing date, finalize the sale, and divide the proceeds between the interested parties. The good news is that when you partner with a professional home buyer, they can accelerate this process, as you already handled the most challenging part of the process: finding a buyer. At LEDGE, we help navigate the bereaved through this process and may even cover the cost of the attorney’s fees to finalize the deal. If you’re dealing with probate court, call us at 407-377-5515
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