If you are an active investor in the real estate industry, you must have come across probate properties or flipping houses in California. These properties are often low priced and hence, they turn out to be great deals. However, it’s important to note that these real estate transactions usually take longer than conventional An Ultimate property sales.
Here in this guide, we are going to cover everything you need to know to sell or buy a probate property. So, before plunging into probate sales, read this guide.
Probate Property: Overview
Want to know what exactly is a probate property or probate sale? Probate is a legal term used to describe properties where the homeowner deceased without a will passing on the property to an heir. The entire probate buy or sale process involves much more than just making transactions.
In most probate cases, an estate attorney or representative handles the property and sells it to liquidate the asset. Once the transactions are made, they then distribute the money to the family members. As a result, probate properties leave scopes for major bargains.
As already stated, Probate sales are usually priced lower than market values, much like foreclosures. And that’s what buyers find more lucrative and attractive about such deals. However, the process becomes lengthy and complicated as a probate court has to intervene in the process. It’s only under the court’s supervision and approval that a probate property can be sold.
Purchasing Probate Properties
As a real estate investor, buying a probate property can let you get your hands on a lucrative bargain, but at the same time, you should be very careful about fixing a deal. Buying a probate property from an estate attorney means dealing with an executor and not someone who lived on the property.
It’s more likely that the executor will not have extensive knowledge of the property, and as a result, fail to produce certain vital documents. So, be prepared to do thorough research before taking up the probate sale. Because making a transaction with diligence will help you avoid hidden surprises and charges down the line.
Obtaining a building survey should be your first step An Ultimate toward making a probate deal. Further, you may consider making additional checks on the property such as the building’s central heating and electrical systems. It’s your prime responsibility to dig deeper and unearth all problems associated with the probate property you plan to buy.
Selling Probate Properties
Perhaps, selling a probate property can be pretty challenging unless you have an effective plan of action. As a seller, your first move toward dealing with a probate sale should be determining if you need a Grant of Probate to dispose of the property. The most reliable source to check this is Land Registry records.
Check the title deeds at the Land Registry to find out the exact requirement of documents. However, if you really need a Grant of Probate, look for ways to obtain it as soon as possible. Having the document ensures that the lawful person responsible to handle the deceased’s will have the authority to sign the required paperwork and sell the property.
Getting a Grant of Probate can take around 6-12 weeks, hence, keep this task on the top of your list. Apart from that, get the necessary repairs done on the property if you want a speedy probate sale. Selling or disposing of unwanted furniture, maintaining the lawn, or keeping the heating and electrical systems in good condition can make great differences.
On top of all, always remember to seek professional help while selling a probate property as it falls under the legal process. Also, keeping the property vacant for a long period can turn the asset into a liability. So, it’s strongly advisable to get vacant property insurance handy.
Probate Sales in California
In California, probate properties are generally sold through one of the five mediums – private sale, public auction, real estate agency, private auction, or Trust Department. Selling a probate property through a real estate agency is the most common way to deal with probate sales. Private or public auctions are announced in the newspapers when the seller wants a higher bid. Because bidding on a probate property can lead to competitive results, making the property sale price unpredictable.
Ensure to be well equipped with knowledge before committing to buy or sell a probate property. If you opt for fixing and flipping houses in California, doing extensive research and then buying probate properties can be a great way to make a profit. Besides, some of the probate disclosure laws are very difficult to understand. Hence, it’s always better to consult an experienced attorney, law representative, or real estate agent. Lastly, staying updated with your real estate plan can help you protect your property properly.