Probate Real Estate Administrator Incharge of Selling the Estate
Probate real estate is property that belongs to heirs, but cannot be released because it is in the process of probate. Probate occurs when a person dies without a Revocable Living Trust or Last Will and Testament. Even when a person executes a Will and Testament, real estate and other assets can be held in probate for several months or years.
When heirs need or want to sell probate real estate, the Estate Administrator is required to petition the probate court. If multiple heirs are entitled to probate real estate, they must all agree to sell the property and sign consensual contracts.
There are many reasons heirs need to liquidate probate real estate. Many people cannot afford to maintain the property. In addition to mortgage payments, insurance and taxes, heirs must also pay utilities, make necessary repairs and tend to basic upkeep. This can quickly add up to thousands of dollars and hundreds of man hours. Few people have the financial means to maintain two houses.
If an estate is small, maintaining probate real estate can rapidly deplete funds and leave heirs with a heavy financial burden. If heirs are unable to pay the expenses, probate real estate can fall into foreclosure or end up in the hands of the state. From there it is sold at auction to recover expenses owed by the estate.
The solution for heirs holding probate real estate is to liquidate the property in exchange for cash. Unless family disputes or unusual circumstances surround the decedent's estate, the probate judge generally authorizes the sale of probate real estate.
The estate administrator can sell the property to whomever they desire. However, they can achieve significant savings by selling probate real estate to private investors. In turn, real estate investors obtain great deals by buying probate real estate and helping someone in need.
Currently, probate real estate is an untapped market. Investing in probate properties requires a bit more legwork than other types of real estate; however, it can yield a better return on investment. While distressed properties are a hot trend, probate properties are oftentimes a better deal.
For the most part, probate real estate consists of houses people recently lived in. They may need a coat of paint, new carpet and minor repairs, but they aren't ready to fall down to the ground. Numerous foreclosure houses have been neglected for years and in need of serious repair. In many cases, investors can purchase probate property for the same, or less, then bank foreclosure or bank owned houses.
Negotiating deals for probate real estate requires certain skills. Effective communication is at the top of the list. To become successful in this niche market requires investors to offer respectable deals to people dealing with the death of a loved one. If you're going to invest in probate real estate, don't become a vulture like so many others searching probate records.
Probate real estate can yield investors a tidy profit, while providing a solution to people in need. It's a good investment choice for investors involved in house flipping and rental properties. Probate real estate can provide significant savings to first-time homeowners or people looking for a vacation home. Many gold nuggets are hiding in court probate records. Pay a visit to the local courthouse and conduct research on probate properties. You might be surprised by what you find!
Published on August 14, 2008 at 10:48 PM | Comments: 1
| | Printer friendly