How Does a Court-Confirmed Probate Sale Work in Real Estate?

Properties sold in probate court can be a good deal, as they’re sometimes priced lower than other homes. It is worth mentioning that there are risks, and probate sales often take longer than traditional real estate transactions to complete. If you’re an active real estate buyer, at some point you’ll likely come across a probate sale. As a result, as with short sales, some buyers keep the probate sales at bay and their real estate agents discourage them from getting their hopes up on actually buying a home through probate courts. I have listed a number of these properties in the Union/Anson county areas, and here’s my take on probate sales in real estate.

Why a home is sold through probate court A home is sold in probate court when someone dies intestate or without bequeathing their property. Bequeath what? Basically, they did not leave an assigned heir to the property outlined in a will.

When that happens, the state takes over and administers the property’s sale. The court wants to be certain the property is marketed and sold at the best possible price. To ensure this, the court requires certain steps, processes and procedures be followed. Probate laws can vary from state to state, but any good real estate agent should be sufficiently knowledgeable about the ins and outs of probate sales.

Marketing a probate sale In a probate sale, the property is marketed just like any other property. The probate attorney or the estate representative will hire a local real estate agent, sign a listing agreement, and show the property, just as they would a traditional listing. Generally, the list price is based upon the listing agent’s suggestions as well as well as the possibility of an independent appraisal ordered and issued by the court.

Making an offer An interested buyer may make an offer on the property at any time. However, in the case of a probate sale, the offer must be accompanied by a 10 percent deposit. The estate representative will then accept or counter the offer, just like any other sale. The offer is subject to the court’s confirmation. Even though the seller may have accepted a buyer’s offer, the seller is not committed to that buyer or their offer. The estate representative, through their probate attorney, will then petition the court to confirm the sale. A future date is chosen for the sale to be confirmed in the court. Playing the waiting game Once the sale date is determined, the parties now must wait a minimum of 30 to 45 days. During this time, the court requires that the property be properly advertised and marketed with the new accepted price. This information is accessible at the local Anson/Union county courthouse. The total becomes the new probate price to be marketed during the "upset bid" period.If the property is sold to one of the bidders, they must immediately hand over a deposit of 10 percent.

The deposit may not be refundable There are some things for buyers to be aware of when moving forward on a probate sale. Many times, the 10 percent deposit that’s required with the offer is not refundable unless the original buyer isn’t the final court confirmed buyer. Also, since the seller is most likely deceased, there usually isn’t anyone to disclose a previously leaky window, illegal work done on the property, plans for a major change to the neighborhood, or anything else that may negatively affect the property’s value. That’s why probate sales can be risky. While there is risk, you do have an inspection period to perform your own due diligence.

An early inspection is your best defense Any serious buyer should have the property inspected from top to bottom before writing an offer. However, time may not permit you to do so. Yes, you’re gambling the price of the home inspection without knowing if your offer will even be accepted, or if you’ll be outbid by someone else in probate court. But would you rather gamble the cost of an inspection — or the cost of a house?

While this is not legal advice, I can certainly partner you with the right folks, so that you have the right people in your corner if this is something that interests you.

Want to learn more? Interested in Union, Anson, Mecklenburg or Stanly county homes? Let's chat! Thinking of shopping elsewhere, that's okay too! Give me a call, and we will get you in touch with a great agent in your area. I have connections all over the US.

Hope it's a great week, y'all.

Real Estate buying and selling service areas for Amanda Evans, Realtor/Broker include (but are not limited to: Mecklenburg, Union, Anson, Stanly, and surrounding counties. Amanda services sellers/buyers with their residential, land, commercial, farm and estate needs. With offices in Monroe and Marshville, North Carolina, Amanda can meet you on site for an appointment at your convenience.

Amanda's Hot Areas for purchase/sale 2022: Matthews, Mint Hill, Indian Trail, Monroe, Wingate, Marshville, New Salem, Unionville, Fairview, Waxhaw, Weddington, Wesley Chapel, Peachland, Polkton, Locust, Midland, Oakboro, Norwood, and Stanfield North Carolina.