Selling Probate Property
Your Los Angeles Probate Real Estate Agent
Navigating the Los Angeles real estate market can be tough, especially when it comes to probate real estate. To truly succeed, you need a dedicated, experienced probate real estate broker on your side – and that’s where Mike Millea Probate Real Estate can help. Mike Millea is a real estate broker in Los Angeles with years of experience. Our office regularly handles residential, commercial, investment, and probate real estate transactions for our clients. If you’re considering selling probate real estate property, the law offices of Mike Millea are here to help you do it.
When Is a Home Sold in Probate?
The probate sales process is how the state deals with distributing the possessions of a deceased person in the absence of a will or a legitimate heir. Real estate properties go into the probate sales process when their owner passes away without completing a last will and testament, or without bequeathing their property to an heir. In these cases, the court must intervene using a probate sale. Probate sales can be a complicated process, but with the right real estate broker, you can secure great terms for our probate property.
How Property Is Sold in Probate Court
In a certain sense, probate property sales work the same way as any other real estate sale. The only difference is that because the original owner of the property is deceased, the court administers the sale and requires a more complex process to ensure the property sells for the best price possible. But just like any other home for sale, the process starts by choosing an asking price and marketing the property.
Marketing a Probate Property
The first step of the probate process is for the representative or executor of the estate to hire a real estate agent and sign a listing agreement. The real estate agent will work with a court-appointed independent appraiser to decide on an asking price, then list the home as for sale under that price. The real estate agent then markets the home, showing it to prospective buyers just like any other property for sale.
How Offers Work on Probate Properties
If a buyer is interested in buying the home, they must make a minimum deposit of 10% of the asking price. The executor can then either accept the offer outright or make a counteroffer, similar to any other real estate transaction. Once the buyer and seller agree on a price, they need to get the court’s approval – this is an added step to prevent collusion between the two properties.
The Probate Court Waiting Period
Here’s where the probate process diverges from normal real estate. After a price is agreed upon, the property must then be relisted at the new price. The parties must leave the listing up for 30 to 45 days and market it at the new price.
Probate Sale Auctions
After the waiting period is over, the sale begins – and here’s where probate sales differ from normal real estate. Probate properties are sold auction-style, with the original interested buyer and any other interested parties able to bid on the property. The re-listed price is used as the starting price for the property, and interested buyers will usually bid on the property in increments of $5,000 until a final price and buyer is agreed upon. Once the auction ends, the highest bigger must put down a 10% deposit immediately – and if no one bids on the property, it goes the original interested buyer.
Tips for Selling Probate Real Estate
- Hire a Probate Real Estate Agent: The probate process can be remarkably complex, and it takes an experienced real estate broker to navigate it successfully. Mike Millea specializes in probate properties and will work to make the entire process streamlined, efficient, and profitable.
- Know the Law: Every state has unique probate laws, and California is no exception. It’s important to study up on your local probate regulations or to hire a probate real estate agent with an intimate knowledge of them.
- Learn Probate Legal Jargon: While having an experienced broker is vital, it also helps to be familiar with common probate real estate terms and the process in general. Take a look at this Glossary of Probate Terms created by the California Supreme Court for help.
Contact Your Los Angeles Probate Real Estate Broker
The probate process can help you sell properties you couldn’t otherwise, but it’s also highly complex. At the law offices of Mike Millea, we’ve been helping our clients score great deals on probate real estate for years, and we work to keep the process as easy as possible. Contact us today to learn more about how we can help you sell your probate real estate today!