I am a Certified Probate Real Estate Specialist (CPRES) This is accomplished by attending seminars and passing a certification test.
Knowing probate process, time lines, and laws in the state in which you are licensed.
12 years ago I created a company and said we would be the one company who would be the champion or advocate for the estate. Rather than the buyer making the profit I would devise a system that would allow the family to sell their home for a top top fair market price letting the family pocket the equity rather than the buyer. I came up with our â€œFix & Sellâ€ strategy. At NO upfront cost to the estate we would fix up these properties.
Itâ€™s embarrassing, the fact is, that most real estate agents are LAZY. They just want to put that For Sale sign in the lawn and collect a check. I decided to break that mold and carve out a niche that would be a WIN,WIN for all the people involved. The family would win, the attorney involved would win, the Realtor would win, the neighborhood would win and the new family who would buy the home to live in would win.
I had already been in real estate for 9 years when I listed a home for sale in probate. I got every book I could find and read all the current information and was astonished to find that there wasnâ€™t one company, book or website that gave a plan for estates to maximize their equity. In fact what I discovered is that there was a whole continuum of needs that went way beyond just putting a FOR SALE sign in the front lawn. Families had to deal with the sale, the donation or disposal of all the personal property, the clothing, the furniture, the abandoned cars. Then there was the gardening, the utilities and the pool service. In addition there was the issue of eviction with rogue caregivers and hostile family members. On top of it the home generally had not been touched in 20 years. The homes needed to be re-roofed, carpeted, painted, inside & out, hardwood floors needed refinishing, appliances, were broken and worn and baths and kitchens needed updating. The list was HUGE!!
The list was HUGE but I had a ace up my sleeve. I had already done a number or renovations and I could marry that to my skills as a bit of a computer nerd so that I could organize the entire process.
There is another reason why the vast vast majority of homes in probate & trust sell in rundown condition. Not only is there a giant list of things that need to be done but there is a substantial monetary cost involved. To renovate these homes it can cost on average of $20-25 thousand dollars. So if you have other siblings involved and you put up all the money, all the time dealing with the personal property, evicting the occupants, hiring the contractors, and gardners etc., when the times comes to dividing the proceeds of estate are you only going to get the same equal share as your siblings???
That was the final piece of the puzzle. What if I could do all of this at NO upfront cost to the family. Not charge any interest, Not charge any points and not even file a lien against the property? In fact the ONLY fee we make is the same fee youâ€™d pay any regular Realtor without all of our specialized services.
The result. I have sold over 200 Probate & Trust estates! I invite you to visit our website, to see the many successful Before & After estates and read the dozens of letters from families who attest to the professional manner in which we have Fixed & Sold our estates. We truly are the familyâ€™s â€œOne Call Solutionâ€
For any questions you have you can visit our website http://www.TrustPropertiesUSA.com or call us at 800.579.4380
Paul A. Hargraves
The other way is without court confirmation and no over bid.
Probates are like most sales except that there are no seller disclosures, and it's always sold AS-IS.
If you need more info, I would be happy to send it to you.
Dave Tap Tapper
To answer you questions:
(1) I am a real estate broker and have been licensed for over 27 years. Additionally, I am a practicing probate attorney licensed by the State Bar of California, and have been in private practice for 10 years.
(2) Please feel free to visit my website at: http://www.probatebrokersocal.com or contact my office at (800) 440-5294.
Sam Mamola, J.D.
"THE PROBATE BROKER"
Should you want to pursue probates, dealing with an agent who can navigate the process and provide you with valuable information about the property and the process is a must.
Feel free to call me at 415-200-7202.
1.) Consultation on home repairs and upgrades. Ensure the home sells for the most amount of money in the shortest amount of time, with the highest return on investment.
2.) A list of contractors to help facilitate any upgrades or home repairs. In the case of a home going through probate proceedings, Realtors that specialize in probate, typically have contractors in place that don't get paid until the home closes. This is very convenient to the executor/admin of the estate.
3.) Property going through probate proceedings sometimes follow a different set of rules under state and local ordinances. Cruth - I'm located in Austin Texas so I can only give you this example, if you inherit a property through probate proceedings in Austin Texas, you're exempt from having to get the local City of Austin Energy Audit performed. Reference: http://www.austinenergy.com/about%20us/environmental%20initi
4.) Help the family assess whether they should sell the home quickly via wholesale markets; or follow the steps mentioned above and sell it for retail.
These are some the most important services I think an agent can offer a client, going through probate. An experienced "Probate Realtor" will help prepare a client for the unexpected and ensure the client reaps desirable results based off their needs.
Christopher Watters, Realtor/Broker
Watters International Realty - Austin, Texas
IN CALIFORNIA, when real estate of a deceased person goes into probate, the sale of that real estate becomes subject to certain legal requirements and regulations.
In the majority of cases in our area today, the estate representative (an executor or administrator of the estate) has the authority to sell the property through powers granted by the Independent Administration of Estates Act (IAEA). When the estate representative has full powers under this act, he/she may elect to sell the property without the need for a court confirmation hearing. Unless there are objections by interested parties to the estate, which could require the sale to be confirmed in a hearing, the sale can usually be completed with a minimum of additional requirements. Most estate sales sold under the IAEA are completed very smoothly and differ very little from most other sales.
In some cases, the estate representative sale of property in probate may be granted only limited powers through IAEA, in which case a confirmation hearing is required. Even if the estate representative has full powers, he/she may elect to have the sale confirmed in court.
When court confirmation is either chosen or required, certain procedures are generally followed, as required by law and/or custom:
An offer is presented and conditionally â€œacceptedâ€ by the estate representative. This purchase agreement is not binding on the estate.
After all buyer contingencies are removed from the accepted offer, a petition for the court hearing is made. The date of the court hearing depends upon the court calendar at the time, but is generally 20-40 days from the date of the petition.
The buyer needs to deposit 10% of the purchase price prior to or on the date of the court confirmation hearing.
The sale, together with the accepted offering price, is advertised for a statutory period in a local newspaper.
There is open, competitive bidding at the court hearing. The minimum first overbid price shall be an amount equal to the accepted purchase price of the accepted offer, plus five percent of that amount, plus $500. In the event of such an overbid, the court shall determine any further incremental overbidding amounts - for example, $1,000 or $2,000. The bidding stops with the final bid.
Any person who bids in court must make an unconditional offer (i.e., obtaining financing and approving inspections should not be a condition of the offer) and if confirmed must present a cashierâ€™s check deposit for 10% of the purchase price as described above, or as determined by the court.
In the event a buyer defaults after a court confirmed sale, the buyer may lose his/her deposit.
If the court confirms the sale to an overbidder rather than the original buyer, the original buyerâ€™s deposit shall be refunded. If the sale is confirmed to the original buyer, the deposit shall apply to the purchase price.
The purchase price accepted must be at least 90% of the probate refereeâ€™s appraised or re-appraised value of the property.
Real estate commissions are subject to approval of the court.
(borrowed from: http://www.bobblumberg.com/PROBATE.htm)
Often times the sale of real estate in an estate creates additional transactions for real estate professionals because many times estate beneficiaries; buy a bigger house, become real estate investors or buy their vacation "dream home"y when the inherit money.
The best resource in the industry for real estate agents to build their niche practice in on the EstateSettlement.com web site (and support sites). This marketing platform has over 20 web sites to help agents find and service estate executors. Also they have a long list of attorneys which provides networking opportunities for agents.
Exclusive niche marketing like this technique eliminates competition and builds a strong business franchise.
TRI Coldwell Banker, SF's #1 Office
PROBATE, LIVING TRUST, SHORT SALE, REO & BPO