Are you thinking about investing in real estate in Texas? This is an area that has plenty of unique pros and cons. You may be interested in picking up a new property via a probate sale. Although risky, this may prove to be a beneficial move. Here are a few details for you to keep in mind if you consider this step.
What is the purpose of a probate sale?
A probate sale can be an integral part of the process of probate & estate administration/planning. If a person should die without preparing a will, this is known as dying intestate. At this point, their estate will enter into the condition of probate. This process is overseen by an official probate court.
The court has a number of duties to perform during the probate process. One of them will be to oversee the sale of real estate property that was owned by the deceased. The point of doing so will be to realize the maximum level of profit. Real estate property will thus be sold with the value of the estate in mind.
What makes a probate sale different?
There are certain key elements that make a probate sale different than a regular real estate sale. The most important one is that the entire process of a probate sale is controlled by a probate court. The proceeds from the sale will go toward the value of the estate rather than to a private individual.
The listing price of the property is set by the probate court. At this point, you can make an offer backed up by a 10 percent down payment. The court can then decide whether or not to accept the highest bid. This will be done at a specially appointed confirmation hearing.