Tips before Buying a Los Angeles House in Probate

Probate properties are real property, such as a home or investment property, that is in the legal process called probate, which is meant to carry out the estate of the deceased, including the settling of their assets. Properties in probate are sent through the probate court even if the deceased left a will, which eventually passes the inherited house onto the beneficiaries of the property.

If you are active in the real estate market in Los Angeles, you must have seen many probate deals and have probably gotten offers to buy houses in Los Angeles with a probate sale. In fact, at Inhouse Offer, we buy houses Los Angeles in probate. We are a reckless cash home buyer that is always ready to buy houses irrespective of their conditions.

However, a major part of a successful real estate investing business are being able to find and buy houses at a discount. One great way for investors to achieve this is by buying a house in probate. Although you can buy probate houses at a lower price, there are some things you should know.
Unlike the traditional means of buying real estate properties, the processes involved in buying probate houses are different and challenging. Hence, we have come up with this article to enlighten you on the tips to know before buying a Los Angeles house in probate. Let’s explore more.

Tips before Buying a Los Angeles House in Probate

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Understand what it is a probate sale

In general, a probate sale is the sale of assets left by a deceased person, and that must pass through probate court. This includes assets that are either distributed by a will or left by a person who has died intestate without bequeathing their property. When that happens, the state takes over and administers the property sale. The probate sale usually involves a court working with a probate attorney. The court will want to be certain the property is marketed and sold at the best possible price. However, probate laws can vary from state to state. Hence, it is advisable that you understand the ins and outs of probate sales. This will help you make smart, quick decisions when it matters the most.
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Know how to make your offer

Making an offer on a probate property is also the same as other properties. However, in the case of a probate sale, the offer must be accompanied by a 10% deposit. The estate representative from the court will then accept or counter the offer. If the offer is accepted, you will still have to wait for the court’s confirmation. And the estate representative, through their probate attorney, will petition the court to confirm the sale. A future date is then chosen for the sale to be confirmed in the court.
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Wait and bid for other offers

After you have made your bid, your offer needs to be confirmed by the court. This process usually takes a minimum of 30-45 days to accommodate other interested buyers. If you offer a certain amount, the court will take your offer and look for other buyers to match it. If there are no other offers, you will be given the property. Once other buyers show interest, you need to match their prices to get your fair share. However, if any of the other buyers outbid you, you should collect back the 10% deposit you paid for the estate representative, and the buyer pays their 10%. Probate sale is not an easy process to go through, but you can scale through it if you are financially capable.
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An early inspection is your best shot

It is advisable that you inspect the property from top to bottom before writing an offer. Yes, you are gambling the price of the home inspection without knowing if your offer will even be accepted or if someone else will outbid you in probate court. But it is worth it. It is better to gamble the cost of an inspection than to risk the cost of a house. Irrespective of who is selling the property—the court, the executor, or the beneficiaries, it is in your best interest to ensure the home is insured throughout the process. Although it is most likely that the homeowner’s insurance policy would have expired when the deceased passed away. You must purchase new insurance in the name of the current owner. This is to ensure that the property is protected against fire and other damage.

Wrapping Up

Meanwhile, real estate properties sold in a probate sale can be a very good bargain for investors or potential homeowners. It is worthy to note that the processes involved in closing the sale are different from that of a traditional process of acquiring a home as it involves the court and legal proceedings. Hence, it is advisable that you have an understanding of the process before going for a probate sale. We highlighted the tips you need before buying a house in probate in this article. Adhering to these tips will keep you one step ahead of others, and the probate sale will become easier for you.

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