A probate sale is the sale of a 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 an offer is accepted “subject to court confirmation”. At the time of the court hearing the buyer’s contingencies have been removed; the buyer is ready to close escrow. At this hearing, other bidders are welcomed and can outbid the original buyer. The first overbid is a complicated calculation. Approximately 5% over the currently “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; 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) There are other bidders who outbid the original buyer and this successful bidder purchases the property.
Those which don’t require court confirmation
A probate attorney is involved and may want to review contracts; this can take a little more time. Other than that, the escrow will be very similar to a standard real estate sale.
The Harb and Co. Team has decades of experience representing both buyers and executors of probate sales. They can be quite complicated and an experienced Realtor is a must.