Buying a house in probate is not a walk in the park. But if you are deadset on taking advantage of low purchase prices that most probate houses go for, it is best to do this with your eyes open. Here are 3 tips for probate house buyers that can help you make the right decisions if you are planning on buying a house on probate.
Expect a long buying process.
Buying a property under probate can take you 6 months or even longer, especially if there is more than one executor, if the property is under litigation, or if there are multiple parties with interests on the property. Executors are expected to consult not only with lawyers but also with surviving family members and beneficiaries before they
can deny or approve your offer. On top of that, you have to wait until the property is put under probate to make an offer. It is therefore important that you know how much time you may need to wait before you can get your hands on the property. Probate processes may also require additional requirements than traditional property purchase. The length of time may affect your decision to go through this route, especially if you are looking for a residential property that you can move into as soon as possible.
Be creative with your offer.
You can expect other people to be looking at the same property as well so craft a good offer beforehand to gain some advantage. It could be an above-market offer, multiple deposits, non-refundable pass through deposits, or even a sufficient explanation why selling to you would be in the best interest of the seller.
Never take as-is properties at face value.
While most probate properties are sold as is, most states still require the executor to disclose issues with the property that is within their knowledge, such as major structural defects or the presence of any pending litigation. Buyers are also allowed to request for full inspections, so set aside an amount for that in case you are given the green light to have the property inspected by professionals before you make an offer.
The entire process of buying a probate property can be intimidating especially for first time probate house buyers. It is best to work with someone who has ample experience in this area so you can be sure that you can cover all bases. A good real estate broker can help make sure that all required documents are ready, help you craft a good offer, and help you with inspection and other aspects of the buying process.