A discussion of the more unusual real estate investments must include probate sale or sales of properties in estates. Also, auctions are becoming a more popular way to dispose of real estate, particularly because of the continued expansion of the Internet. In this post we will focus on the discussion of estate sales. Probate sales, even more reliable than taxes, death creates opportunities for the purchase of good real estate at attractive prices. Every day someone in your area dies and leaves behind real estate that his heirs may not have any desire to retain. These properties are sold in probate sales by executors of the estate with the assistance of probate attorneys (or by the public administrator if the owner dies without a trust or will).visit Pdx Renovations.
Know the laws and rules regarding probate sales in your area, because waiting periods and even court confirmation may be required before the sale is finalized. Also, these sales are often subject to overbids. A potential buyer can use the overbid process to appeal directly to the court (before the court issues the order approving the estate sale) to outbid you and purchase the property for more than the current offer under consideration. Generally, the right to overbid requires an offer that exceeds the existing offer by at least 5 percent. Be aware that this possibility exists, and be prepared to raise your bid. Just be careful not to get caught up in a bidding war and overpay for a property. Set a maximum price for yourself before you begin bidding.
Before we dive into this, I want to caution you not to try to analyze the complete probate process. It will only impede your progress as a Probate Agent. Just try to understand how to find the properties, and as you do your research, you will become more familiar with the probate system. I still learn something new with every probate real estate transaction I buy, sell, or list. You will earn as you learn. Try to keep this in perspective.
When I first started tracking probates, I targeted an area, which included 4 cities, about 8 square miles, and a population of about 400,000. I had been selling properties in this area for the previous 14 years, so I knew the prices. I advise you to start in an area you know; otherwise, on top of working this new system, you will also have to educate yourself on the property values in order to determine the right prices to pay for your client. Stay in your area of expertise to start.