Making an offer for Probate Sale in Califronia

[Gaurav Mehta]

Hi,

I came across a Probate Sale that I want to purchase so planning to make an offer. Some questions though about the sale based on the bid process document that I received from my agent

Property Background: The property is fixer upper and is currently not livable (because kitchen is not functional) so I cannot get a conventional loan so planning to make an all cash offer. The sale is "Conservatorship"

1. One requirement is that my offer has to be within 90% of appraisal price. The probate's referee's appraisal for the property is not yet available. In such a scenario, how do I make an offer so that it falls within 90% of the appraisal price. My listing agent gave me 1 comp for a property that was also fixer upper but was zoned R2 and was on a lot twice the size. So How should I come up with an offer that is within 90% appraisal value given the unknowns. Would the list price be a good proxy for appraisal price? Is it possible that the appraisal price may be available before the offer due date?

2. What happens if my offer is not within 90% of appraisal value and if there are no other buyers to counter my offer?

3. The document says "Your checks will be returned to you should your bid not be accepted. Accepted deposit checks will be held by the state". In case my offer is accepted and there is a counter offer in court and that gets accepted, do I lose my deposit?

4. The document says that in court if someone has to overbid an offer, they have to overbid by 10% of first $10,000 and 5% of the balance of your bid. Assuming someone make an offer for $500,000. Does that mean that I have to overbid by $34,500 (10% of $10,000 + 5% of $490,000)?

Thanks