How to Buy Probate Assets
Probate assets are assets that are not designated in a decedent's will and are left to the courts to decide their distribution. Buying probate assets can be a source of supplemental income if you choose to restore and sell the property, or a convenient way to acquire real estate or other assets at a price less than market value. Often, selling a probate asset is a better choice for beneficiaries and family members who may not have the resources to cover the debts, expenses and taxes that may be associated with a probate asset such as real estate.
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Instructions
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Find available probate assets in your area. Search for probate notices in the Public Notices section of your local newspaper. Ask your real estate agent whether they know of any probate properties. Ask the county tax assessor whether they know of any probate properties in the area. Search public real estate records at the office of the county to clerk for probate properties. Most public real estate records include the name of the will's executor, estate executor and the contact information for any other representatives of the property. Probate assets must be court-approved for sale.
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Call the property representative or estate executor to discuss the probate estate. Address the sensitivity of their situation by expressing your condolences and state your intention to purchase the property in as-is condition. Do not insult the estate executor with a low-ball price, but make a fair offer that is between 20 and 30 percent beneath market value for the property. The estate executor may give you what they feel is a fair price for the property.
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Arrange an appointment to meet the estate executor in person and to view the property. Inspect the property yourself, or hire a professional inspector to assess the property, including the condition of electrical, plumbing and structural aspects of the house. Discuss and negotiate a fair price with the estate executor.
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Negotiate and execute a sales contract for the probate asset with the estate executor.
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Submit the sales contract to the probate court for review of the proposed sale. The probate process may last from several months to over a year before the court approves the contract.
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Tips & Warnings
Consider attorney fees, escrow fees, closing costs, real estate commissions and the cost of restoring the property when purchasing probate assets for resale.
Buying probate assets involves an investment on your part in order to pay for the property, as well as tact toward the decedent's family and clear communication of your goals. Do not believe websites or infomercials that promise "easy cash" from the buying and selling of probate assets.
