A probate sale is the sale of the home of someone who has passed and does not have a living trust. When looking to purchase a probate listing, the first question to ask is whether or not the sale requires court confirmation.
Those requiring court confirmation
In this instance, the seller accepts an offer “subject to court confirmation.” By the court hearing, the buyer has removed their contingencies and is prepared to close escrow. At the hearing, other bidders are invited and can outbid the original buyer. The first overbid is a complicated calculation. Approximately 5% over the current “in escrow price”. Click here to read more about the overbidding process and formula used to calculate the first overbid
At the hearing, four things can happen:
1) No other bidders appear in court; the original buyer closes at the already agreed-upon offered price. 2) There are other bidders, but the original buyer outbids them. 3) Other bidders appear, and the original buyer decides not to compete (increase his offered price). 4) Other bidders outbid the original buyer, and this successful bidder purchases the property.
Those that don’t require court confirmation
A probate attorney may need to review the contracts, which can cause a slight delay. Otherwise, the escrow process will be very similar to a standard real estate sale.
The Harb & Co. Team has decades of experience representing both buyers and executors in probate sales. They can be quite complicated, and an experienced Realtor is a must.
