Estate property is property that belonged to a deceased person. Probate is the legal process used to validate the testator’s last will, settle outstanding debts, and distribute remaining estates to heirs. The process can be extended if heirs contest the will or if the testator died without a will.
Estate properties must be purchased through the executor. If the administrator has received a court order, he can sell the house without court approval. Otherwise, a judge must approve the sale.
If there are several heirs to the property, they must all agree to the sale. Once court approval is obtained, investors can negotiate the purchase price with the executor.
To locate estate properties, investors must visit local courthouses to view public records. When a person dies, their last will is presented to the court. The will then becomes public and available to anyone who wishes to consult it.
Wills contain information about estate property and provide the name and contact information of the executor. Property ownership is documented in the will and contains the property address.
After reviewing the will, investors must locate title documents to determine if the home has a clear title or if there is a mortgage attached. Experts recommend looking for estate properties with clear titles or those with significant equity.
After receiving a list of potential properties, investors must contact the estate executors to discuss purchasing the home. There will be cases when admins don’t want to sell. Offer sincere condolences for their loss and move on to the next property on the list.
Selling estate properties can be a huge financial drain on properties that do not have sufficient funds to cover the expenses associated with the home. During the probate process, the estate is responsible for all expenses, including mortgage payments, property taxes and insurance, homeowners association fees, and general upkeep. These expenses can quickly bankrupt the estate, leaving the heirs nothing.
Many managers need to liquidate real estate holdings quickly to eliminate financial stress. Offering to buy these properties can provide the relief they want and allow them to expedite the process of completing the estate.
Investing in estate properties can offer an exceptional return on investment. Although finding estate real estate requires more research than other types of real estate, it’s usually worth the time and effort.
Estate houses are often in good to very good condition. Most are selling for 20 to 30 percent below market value to speed up a quick sale and reduce costs for heirs and beneficiaries.
Investing in estate property is virtually an untapped market. Investors who take the time to learn about the right protocol can reap tremendous rewards. To better understand this niche, look for investors who specialize in buying and selling estate properties or do some research online.