How Does Probate Real Estate Work for Real Estate Agents?
Jonathan Khorsandi on Apr 19, 2022 posted in Probate Real Estate
It is a sad fact of life that almost 10,000 people die every day in America for all sorts of reasons. Many of them are homeowners, and the family members of those late homeowners are likely to want someone else to deal with the estate. Are you ready to get involved with these probate real estate leads?
Read on to learn more about how to make use of some of the best opportunities in real estate. By the time you reach the bottom of the page, you should understand more about what probate real estate leads are and how to handle them. Get started now and boost your potential earnings.
What Is a Probate Sale in Real Estate?
The short version of this is selling the homes of the recently deceased. The definition from the American Bar Association is:
"Probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries."
This process will be different depending on which state you are working in, so you should investigate how it works in your area. Although, in all cases, you will be working through the official contact for the deceased party. This is often called the executor (or sometimes executrix) of the estate, but it can also have a different name.
The executor will be attempting to take stock of the deceased person's inventory and then dispose of it. This also includes the late individual's land or home. Thus it can also lead to probate in real estate as the executor goes through the process of transferring its ownership.
How Does It Work?
Probate itself is the legal process that settles the debts of the deceased. It also means the process by which any heirs receive property, usually via the breakdown listed in a will.
If there is no will or no living trust, the person responsible is called the administrator and this can be a family member or friend.
The investor or agent will aim to either buy the property for a profitable price or ask to take over the sale for a fee. As the inheritors are often handling other parts of the deceased's estate, this is often done to free them up to handle other areas.
Also, the inheritors are usually in an emotional state. This will mean they want as much work taken away from them as possible.
Sometimes, more than one inheritor will receive a part of the property. In that case, any joint executors will need to resolve any issues they have about the property's legal status before they can move forward. This will generally involve coming to an agreement, or one executor applying to remove the other executors from the will.
Because these deals involve large amounts of money, they can become lengthy processes. After the property sells, the proceeds get split up between the executors as per any predetermined agreements. This could leave all parties with equal portions, or different amounts for everyone.
For a full breakdown of how this process works, we recommend that you speak to a certified probate real estate specialist or try out a FREE 7-Day Trial. Either will be able to give you more information on the process.
What Are Some Probate Real Estate Tips?
Finding Probate Listings
It may seem a bit like ambulance chasing, but you need to be quick on the draw to get involved with probate real estate. Your first port of call should be your local courthouse.
The courts will have records of any probate issues with real estate in the local area. You can use this to pick up probate real estate at a low price that you can invest in and sell later.
You can even focus your search. By talking to a courthouse clerk, you might be able to find specific probate homes that are within a set price or location.
As a probate real estate agent, you can also ask for any probate real estate that appeared after a specific date. This will prevent you from picking up the same information as the last time you visited.
You can also buy these lists of properties online. There are several dedicated places to find such lists, and many have options for focused searches. Make sure to work with a trusted and high-quality probate listing service to find what you need.
Remember the State You Work In
Every state has different laws on probate real estate leads and how they work. Make sure that you are working to the rules of your location.
It Takes as Long as It Takes
Courts have their own time frames. Sometimes it takes between one and two months for a sale to go through. You need patience if you are going to succeed at a probate real estate sale.
More on Probate Real Estate
You should now have a much better idea of what probate real estate leads are and how to gather them. Lucky for you, though, there are easier ways to do this than to look in the obituaries.
ProbateData collates all the information you need on leads in probate real estate across the country. These results have helped many people across the country. So, sign up today and earn a free trial to get ahead of the game.