Probate properties are properties that are going through the probate process after the owner passes away. During this process the validity of the person’s will is examined and verified by a probate judge. After the will is deemed valid, the property can be disposed of as the heirs see fit. If you are looking for a great real estate investment deal that can save you up to 40 per cent off the market value of a real estate property then consider buying and selling probate properties.
- Skill level:
Build your investment team. You will need a real estate agent, a financier and a contractor or real estate professional.
Find probate properties by talking with your real estate agent. Tell them exactly what you are looking for--the size, type and location of the probate properties that you are interested in. They will be able to scan their listings and pull properties that meet your criteria.
Read through the obituaries in your local newspaper. Create a list of names of everyone that has passed and then check your local property ownership records to see if the deceased owned real estate in your area, and if so where the property is located. Drive by the property and talk to the family about the possible purchase of the property.
Visit your local courthouse and browse through the probate records. Since these are public record they can be accessed by anyone. Make notes about the properties that you are interested in, as well as the name of the will’s executor and their contact information. Contact them and see if the property will be put up for sale, and if so you can put in a bid.
Drop in on estate sales. Chances are you can talk to the family or the executor of the will about buying the property.
Fix up the properties that you bought, by freshening up the cosmetics and fixing major problems.
Have your real estate agent market the property for you. They will be in charge of pricing the property, staging it, placing ads, holding open houses and showing the house.
Make adjustments to the price of the property to ensure a quick sale. After you sell a home, pay your real estate agent their commission and deposit the balance in your bank account.