When real estate is part of a decedent’s assets, heirs and beneficiaries often choose to sell the home and split the proceeds. However, realtors involved in the buying or selling of homes in probate should know the potential risks involved with property in probate.
1. Negotiations Include More Parties
Negotiating the price of a probate property isn’t nearly as straightforward as a conventional home sale. Not only must the seller and buyer agree on a price, the price sometimes must be confirmed by the court overseeing the probate process.
The process is even more complicated if there are multiple beneficiaries who have to come to a consensus or there are beneficiaries who disagree about selling the property.
2. The Waiting Period Is Longer
In a conventional home sale, the buyer and seller can choose a mutually beneficial closing date and write it into the contract. California probate properties have a mandated waiting period. Parties should plan on waiting at least 30-45 days, and even then, the sale isn’t guaranteed.
The property must still be marketed during this time with the new accepted price. After waiting, the buyer interested in the property must still go to court and participate in an auction.
3. Buyers May Be Reluctant About the Deposit
There’s a lot of uncertainty involved when buying a probate property. The buyer has to wait a substantial amount of time before they can take ownership, and during that time, they do not know whether or not the property will be theirs or if they’ll end up in a bidding war.
4. Home Safety Isn’t Guaranteed
If the property in question is a family home, the safety could be questionable. A buyer is just as likely to end up with a top-of-the line freshly remodeled home as they are to end up with a home that hasn’t seen updates in half a century.
An inspection is essential. The buyer may lose out on the money they pay for an inspection, but taking this step can save them from buying a home that is beyond repair or needs expensive repairs.
If you’re interested in probate property, it’s important to work with an experienced probate attorney. Contact The Werner Law Firm at 866-265-4467 to schedule a consultation now.