Buying a House in Probate: What’s Involved?

by Rebbeca Binder on October 25, 2013

  • Sumo

(U. S. Property Law and generally) There aren’t many people who don’t dream of owning their own home one day. Even those who like to travel the world enjoy having their own humble abode to return to after an exciting getaway. Unfortunately, several nicer homes are out of many individual’s price range, and this often ends with perpetual rental agreements. It’s important to note, however, that not all homes have to be expensive. If a person can find the right house in probate, they will likely get a great deal at a low price.

What is a Probate Sale?

A probate home sale occurs when an individual dies without specifying anyone who should receive their estate in the event of their death. In these instances, the courts will take over the property and assign someone – generally a government trustee – to sell the home. At this point, interested individuals are allowed to make offers on the property, but in many cases, they’ll need to provide a deposit on the property at that time.

After the courts accept an offer, a waiting period will take place in which the property is marketed at a price higher than the accepted offer. When the sale date comes around, there could be several individuals at the courthouse seeking to purchase the property. This often takes place as an auction-style sale, but since the bidding starts around a person’s initial offer, the home often goes for much less than it’s actually worth.

Considerations when Buying Probate Homes

There are a variety of considerations that a person should take into account before buying a house in probate. The first is the fact that there is no guarantee that the person who made the initial offer will walk away with ownership of the home. This means that if an individual is on a time constraint to purchase a home, they may not do well with a probate purchase.

In addition, probate buyers should recognize that there aren’t usually contingencies placed on these home sales. This means that, unlike other real estate transactions, the seller of the home doesn’t have to wait for a person to sell their existing home or wait for a loan. In other words, buyers should have preapproval from whomever their lender will be.

Finally, every potential probate buyer needs to know that these homes are sold as-is. This means that a seller has no requirement to handle repairs or lower the home’s price due to defects. Because of this, an individual should always work with a probate expert, which could be an attorney or a real estate agent, when buying in probate. This will minimize a person’s risk of purchasing a home that has more problems than the low price was worth.

Buying a home in probate is undoubtedly a complex process, but the amount of money that a person will save is often well worth the additional troubles. In fact, with the help of an expert home flipping company, like, an individual may find the process downright simple. While a sale isn’t guaranteed to a person when they’re buying in probate, the mere chance of getting a home at such a great price should be enough to make them try.

Rebbeca Binder

Rebbeca Binder

Rebecca Binder is a stay-at-home mom to two daughters. She has been a freelance writer for five years and enjoys writing on topics relating to law and consumer information. Aside from her writing and family, her hobbies include playing piano and fitness.
Rebbeca Binder

Latest posts by Rebbeca Binder (see all)

Previous post:

Next post: