Los Angeles Probate Real Estate
Often probate real estate can come with an incredibly discounted price. Probate sales happen when the property owner is deceased and no will is in place. As such the heirs or representatives of the estate may to get rid of it quickly and may be more willing to take a loss.
There are huge opportunities to find amazing deals but there are also many stipulations that, without an expert by your side, could make the sale more expensive than you realize. Here’s what you need to know.
Common Stipulations for Probate Sales
Probate law varies from state to state, but there are certain stipulations that can be applied to probate real estate sales in general. Generally, sellers hand over the duties for listing the property to a probate agent. If you are a buyer, there are several stipulations that make buying probate different than a typical real estate transaction:
1. All probate real estate sales are “as is.” You cannot request repairs or change the deal after your offer or bid is accepted.
2. Additionally, you will not be allowed to put contingencies into the deal. If you cannot get financing or if an inspection turns up some hidden problem, you cannot back out of the deal.
3. You can get a break on some of the fees, as many will fall to the seller. Fees like any liens against the property, escrow fees, or outstanding property taxes are generally paid by the seller.
4. Sellers do not approve offers in a probate sale, a probate judge does. Even if your offer is accepted, the property must still go up for auction where you could get outbid before a final offer is accepted. The sale date is usually a month or two after your initial offer is accepted, and you have to appear in court with cash on hand, plus a deposit of 10% of the purchase price.
5. In any real estate transaction, you have to read the terms with careful detail to make sure that you understand your obligations. When it comes to probate real estate sales, it is crucial that you read the disclosing documents before you make an offer.
Bidding on Probate Real Estate
Making an offer on probate property can be very complex. You can do everything right and still lose out on the property, even after having the money ready and having a judge accept your initial offer. Probate properties still have to be auctioned.
Your accepted offer is just the opening bid on the auction date. Someone else can come in and outbid you if they have cash on hand to cover the increase and you do not. The auction will not be postponed and you cannot try to negotiate the price.
Instead of setting the initial price, you could wait and attend the auction and try to outbid the offer price on the day of the auction. Keep in mind that courts do not accept checks. You’ll have to have a cashier’s check for 10% of the opening bid, usually a 10% deposit, and you’ll have to be prepared to pay the difference if the offer price gets bid up at auction.
View some quick links to search probate properties:
Nothing is guaranteed until the judge closes the bidding and you are the last buyer standing in a probate sale. It’s easy to overbid for a property in the heat of the moment. You may not even agree with the terms. The best way to keep a cool head during a probate sale is to hire a professional agent who can weigh comps, alert you to terms in the agreement, and help you make a winning bid.
Get Help Searching Los Angeles Probate Real Estate from The Sanborn Team
Just finding Los Angeles probate real estate can be overwhelming. There are mayn different ways to find properties, including searching obituaries, newspapers for auctions and listings, or the clerk of courts to search probate records. Or you could get help with your search from The Sanborn Team.
Our search tool makes it easy to find probate real estate in Los Angeles that fits your price range. Search our listings and then talk to our experienced team of probate specialists for more help.