The Worst Mistake You Can Make in Probate Real Estate (Part I)

Over my 19 years in the real estate and finance business, I have heard it said over and over…”I don’t want to deal with that probate situation.”  Or worse than that “I don’t want to deal with that probate because it requires court confirmation”. 

This avoidance of dealing with a probate situation has caused more loss of capital, increased expenses, waste of money and reduced assets being passed to the beneficiaries than any other factor.  When you dig into the details of probate real estate transactions I think you will find that it really isn’t so bad.  In today's market, many probate sales close significantly faster than Short Sales!

Whether you are the personal representative of an estate, a real estate agent, buyer of property, heir or beneficiary, it will help to have a little better understanding of the process. 
PROBATE PROPERTY SALES
Court Confirmation v. Private Sale

Although probate property is often sold in open court (in a “confirmation hearing”), estate representatives may also elect to sell without a confirmation hearing!

The decision to sell with or without confirmation is generally made by the estate representative in consultation with her lawyer, and is usually based upon the facts of the case, the attitudes of the beneficiaries, and the state of the sales market. In every case, estate representatives and their brokers are faced with the following pros and cons.  First let’s cover Court Confirmation Sales:

COURT CONFIRMATION

Pros:

1. Process is well-documented and held in open court, reducing beneficiary objections

2. Selling agent is “rewarded” for bringing higher offers with extra Commission

3. Sellers often obtain higher prices through competitive bidding

Cons:

1. Process takes longer (as much as 120 days from offer to close of escrow

2. Buyer must be “confirmed” by court before buying, and may have to compete with other offerors at court hearing

3. Process can be difficult to explain to anxious buyers

So as not to overload you with too much information at one time, I will end here.  Stay tuned for my next article that will cover the pro’s and cons of Non-Confirmation Sales!  For more info on this topic, check out www.probatetitle.com and request the free e-books.

“Kevin has been a ‘life saver' for me and my business so many things that I don't know where to start.  I have always felt that he is not only a professional but extremely knowledgeable in real estate matters and the related industries. I feel confident in referring Kevin to anyone that has any type of real estate needs.”
Beverly Tagger, Real Estate Agent
Century 21 Universal

My job is to help you close more and close faster! I solve real estate problems before they happen!  So try me on your next title order to see the difference!
“My 19 years experience in sales, real estate, lending, title, escrow, and investing provide you with the most comprehensive, proactive solutions to your real estate issues!  If there is a problem in your business, together we can solve it.” 

Kevin Sayles
Your Probate Specialist
VP, Advantage Title
213-364-3810
www.ProbateTitle.com
Informational purposes only.  Consult your own tax, estate planning and legal professional for advice.