Do you want to get a great deal on an investment property by purchasing probate real estate? If so, you can open yourself up to properties that you may never have access to otherwise. But to be a successful probate real estate investor, you need to know a few things in advance. What are some of these key things? Here are some to learn about.
1. The Probate System
First and foremost, learn how the probate process actually works. Most Americans are unfamiliar with this legal process, which can create confusion and leave people unprepared or impatient. Probate can take some time, and it has many steps which must be done correctly before assets can be sold. Because you want one of those assets, you should know when and how it will become available.
2. The Probate List
Probate properties aren't generally advertised or handled in the same ways as regular property that's for sale. You often need to access records of properties that are in probate and work with a realty that specializes in this type of real estate.
3. The Bidding Process
While some parts of the bidding method for probate real estate are similar to traditional real estate sales, other aspects are very different. One of these is the overbidding process that can happen even after a bid was accepted. To be successful as an overbidder, you may need to go to court, and you will need to have the correct amount of money in hand and in the right form. Many bidders aren't prepared, so you can be one step ahead of them.
4. The Approval Process
Everything that happens during probate generally needs the approval of either the executor (or personal representative) or the probate court. This is an added complication that can slow down most things and can surprise unwary buyers. When you know what needs approval and how it happens, you can help facilitate this and act during the right windows of opportunity.
5. The Goals of Heirs
The best way to find the right deal is to gauge the goals of the heirs and executors of the particular property. Do they want to just clean it up and sell it fast? Or are they making repairs during probate? Are they sentimentally attached to the house? Is there family drama that may interfere with a quick sale? Your real estate agent should be able to help you assess these and other seller factors to guide you to a property that will cause you the least amount of trouble and meet your own goals.
Want to know more about getting into the probate real estate market? Start by meeting with an experienced probate realty firm, such as Maher Probate Realty, in your area today. Together, you can crack this potential gold mine of homes and grow your investment business even more.