Buying a home is often the biggest financial venture you’ll embark upon. While being a home or property owner can be a rewarding experience, this investment also comes with significant risk. If you decide to hold a probate sale in California, the purchase risk is higher, but you could stand to save a significant amount of money. Here are some important estate administration & probate principles you need to know if you’re having an estate sale.
The reason for a probate sale
There are times in the estate administration & probate process when the family of the deceased decides to conduct a probate sale. When someone passes away without a will, the person is said to have died intestate. This means that all the property of the deceased goes into probate. The local legal system oversees the process and loved ones of the deceased may have to attend probate court hearings. The decedent’s real estate and other valuable items are sold at the most affordable price to make the most of the estate’s value.
How are probate sales different from regular property sales?
There are a few distinct differences between regular and estate sales. Perhaps the most noticeable thing is that probate sales are monitored and determined by state probate courts.
The first step in the sale occurs when the California probate court allows a real estate agent to list the property. However, the court will monitor the progress of the sale from start to finish. The court will also establish a listing price that will often come with a home appraisal. In most instances, the courts will work with the estate representative and real estate agent to determine the listing price.
At this point, individuals who are interested in the estate can make their offers, along with a down payment of 10%. This is usually paid via cashier’s check. The estate representative will accept the most acceptable bid, but the court must accept the offer in order for the sale to be official. A confirmation hearing is necessary for the court to approve the offer.