Probate sale is one option which many people tend to overlook in their process of searching for an affordable property. It is the legal process that involves the settling of a property or an estate of a person who has passed away and when the person has not specified where to and whom to the assets that he possesses should go. In such cases, the sellers are not very keen to put the property in the market and wait for a better deal. Instead, they are looking to dispose of it at the earliest. This presents a golden chance for those investors looking for an affordable investment.
This type of sales is on the rise in both the UK and US market. It is said that in the US alone, there are three million deals at any given time in the process of probate. In the UK, no inheritance tax is payable for probate sales in most cases.
Quite often, the probate sales are done with 30% to 60% discount; however, one should have enough patience for probate investments, as it would take up to 3 years for a probate deal to get completed. There could be battles within families that may take time to resolve. There are probate courts that will hear the disputes that originate and settle the problem in a short time. If there is a will in place, then the executor of the will can disburse the wills accordingly so that the disputes can be settled in accordance with the will.
Probate sales offer an excellent opportunity for the buyer because, as a general trend, it has been observed that many of the heirs are not interested in the inherited property. They also do not want to take the additional burden of paying taxes, renovation, paying the mortgage, etc. Hence, they try to dispose of them quickly and convert into liquid cash. This gives a good bargain to any potential buyer.
So how should one search for probate sales? Probate sales are generally not advertised. It would be a good idea to go through the obituary column of your newspaper and identify whether any of the recently deceased person was the owner of real estate. Then you can approach them directly or otherwise and start with the proceedings. However, this may be a time consuming process for people who are really busy and for such people, hiring the services of a professional real estate agent would be the best idea. Additionally, skimming through the websites can also give you valuable information about probate sales.
There may be different kind of probate issues with every deal. Try to settle the issues amicably before moving to the court. It may take some time to settle, but in most of the cases, the deals are profitable to the investors. Probate sales are one of the best options for the ones who are looking for genuine investment options and are willing to be a little adventurous. If the person has the right awareness, this is a great option for the investor.