Probate sale

[Andy Chu]

I have a property locked up and in escrow for the past 3 months and the court date is on Friday. The real estate was signed off by the heirs in December, and prices have since become a feeding frenzy, and moved upwards. The listing agent stated that it may be in our best interest to attend the probate court sale, since people have the right to bid at the court.

I thought probate court was a formality because all contingencies must be removed prior to submitting for court approval. Any ideas? I would hate to have done everything just to be bid up on the date of court.

[Account Closed]

This kind of "probate deal" isn't a probate deal at all. It's a court supervised open market period and then final auction possibility before confirming the sale.

This is what I call a full blown probate case: where there are estate debts and there are assets that need be sold in order to pay them before closing the estate. If you make an offer on such a property, there is always a risk you won't get it. On the day of the hearing to confirm your purchase contract, the court will ask if there are any bidders in the room. If your agent is advising you to attend the hearing, and you're are willing to pay more for the property, you should probably go. Some courts have rules regarding the % amount necessary to submit overbids. So, it can't be $1.

Overbids are not that common where I am because most buyers feel they had a chance to make their best and highest offer during the offer period. It's the courts job to get the best offer and thus they allow for overbids on the day of the hearing.