Probate homes are properties sold by the probate court to settle the deceased owner's debts.
These properties typically sell for below market rates at a court hearing and have less competition. However, they come with drawbacks, like being sold “as-is” and on a slower timeline than other homes.
If you want the best deal on a probate home in your area, this guide will help you understand how to find probate properties and what to expect when buying one.
What are probate homes?
Homes go into probate if the owner dies without having a living trust or joint ownership of the property. When this happens, the closest living relative is appointed as the executor to administer the sale.
Executors can elect the state probate court to oversee the sale and use the sale to:
- Pay off outstanding debt
- Divide assets between beneficiaries
In many cases, heirs who don’t want to take over possession of their late relative’s property want to sell as soon as possible without making improvements. And while that means more repairs after purchase, probate properties can sell for as little as 40% of the market price.
But what you save in cost, you often lose in time. The probate process is a lengthy one, and some buyers wait up to three years before closing on their discounted property.
7 ways to find probate homes for sale
There’s more than one way to find probate properties and score a discounted home. Whether you prefer a DIY approach or opt for a professional, here are some options to consider.
1. Work with a real estate agent experienced in probate sales
Working with an agent can be invaluable in helping you find the latest probate properties.
Agents have access to the most recent probate listings in the MLS, insider knowledge, and can help you navigate red tape to streamline the process as much as possible.
Need to find a real estate agent who can help you find and buy probate properties? Clever Real Estate can introduce you to agents experienced in these sales for free, with no obligation. Get started with a quick quiz.
2. Check local probate court records
Once probate cases go public, you can check on the case status in person at the county courthouse to determine if a home is part of the case.
Courts often index probate cases by name and may also include a copy of the will or an inventory to help you understand what property is available in each case.
3. Browse online probate listings
Websites, such as Foreclosure.com or Auction.com, as well as local county government websites, often feature probate-specific listings.
These sites make it more convenient to find properties, but the list may not be as thorough as speaking with a clerk at a local courthouse.
4. Look in local newspapers and legal notices
Some executors publish probate home listings in the newspaper to spread the word about the upcoming sale. Checking the legal section may provide insight into upcoming and current probate sales.
5. Attend local probate auctions
Probate auctions typically begin when the executor lists the property for sale. If someone makes an offer on the house, it becomes the initial bid for the probate auction.
Once the offer is made, the probate court schedules a hearing date to approve the home’s sale. During this time, other interested parties can “overbid” on the property — the highest bidder before the hearing ends wins the house.
6. Network with probate attorneys and estate executors
Networking with probate lawyers and estate executors is a great way to have an “in” to local probate real estate.
Forming these connections may help you get an early look at upcoming probate properties or help you make an off-market deal on a probate home.
7. Search obituaries for leads
While it may seem morbid, searching the obituaries is a good place to start looking for a probate house. Obituaries that mention no next of kin or living relatives may have a higher probability of a probate house attached.
Knowing the deceased's last name can help you look up the probate case with the local court and determine if property is for sale.
How to buy a probate property
After you find a probate home, the probate buying process begins when you submit an offer on the property.
From there, the court schedules a confirmation hearing (typically 30-45 days later) to allow a judge to approve the purchase.
You should expect to outbid other interested buyers during the “overbid” portion of the hearing. If you win, you typically need to be prepared to put down a 10% deposit to ensure you’re a serious buyer.
It’s essential to plan for the following if you want to purchase a probate home:
- Delays during the purchase process
- A non-contingent offer
- An “as-is” sale needing repairs
Why get an inspection when purchasing a probate home
As with any as-is sale, most probate homes are fixer-uppers. It’s good to hire an inspector to give the house a thorough once-over — even if you can’t back out of the deal.
A thorough inspection report will help you understand which repairs need to happen right away and which ones you can address later.
Pros and cons of buying probate homes
Purchasing a probate property can be great if you’re looking to keep the sale price low, but it comes with its fair share of drawbacks as well.
Consider these pros and cons before deciding on a probate sale.
Pros
- Below-market pricing
- Less competition
- Decent investment potential
Cons
- Long closing timelines
- Limited disclosures
- Major repairs
Work with a top agent to find probate homes
Choosing to work with a trusted agent is the best way to know you’re getting a great deal on a probate home.
Real estate agents who are familiar with probate sales can help you streamline your search and facilitate a smooth transaction on your probate home purchase.
Learn how Clever can help you find the best agent to meet your needs today!
FAQ
Can a house be sold before probate is granted?
If a surviving spouse or partner of the deceased is a joint owner, then they can sell without going through the probate process. However, the property can’t be sold before probate is granted if the deceased was the sole owner on the deed.
How long does it take to buy a probate property?
Buying a probate property takes a minimum of six months, generally speaking. However, buyers should expect delays in the process. It’s not uncommon for probate cases to drag out for 18-36 months.
Are probate homes always cheaper?
Probate homes typically sell as-is, meaning they often require work after the sale and are priced accordingly. But this doesn’t mean that a probate property will always be cheaper.
Probate homes in good condition (or those that wind up in a bidding war during the hearing) may sell closer to market value.
Do I need a lawyer to buy a probate home?
It’s not necessary to have a lawyer when purchasing a probate home, but you may want to hire one if you run into issues like a contested sale or if you choose not to use a real estate agent.
Can I finance a probate home purchase?
Yes, you can finance a probate home purchase. However, it may be more challenging to secure funding because the sale price isn’t set right away, estates typically favor cash deals, and the financing often depends on the court’s approval.