Tiffany - I will go to the property tomorrow and measure the 'one' bedroom, and check the closet space as well. I see that there is only one picture available. I am happy to take a few more for you as well.
Until then, I have included some information of how a Probate Sale that requires court confirmation works.
TIP: FFIVE THINGS YOU NEED TO KNOW WHEN BUYING A PROPERTY IN PROBATE
Probate properties are sold â€œas isâ€ so donâ€™t expect the owner to make repairs or improvementsâ€”or to lower the price because of existing problems.
Read the disclosures! There are special disclosure documents governing probate sales, so be sure you understand the terms before you make an offer.
Be prepared in court. If a probate sale requires court confirmation, the timing and amount of your offer and the form in which you make your deposit are closely regulated.
There are usually no contingencies on probate sales. In other words, the seller does not have to wait for you to find a loan or to sell your existing home. Get advance approval from your lender.
Work with a probate expert. When you are selecting a real estate agent to assist you with your purchase, ask for details of their recent probate experience in your marketplace. While any agent can represent you, only a probate expert can assure that your transaction is managed correctly so you get the property and the terms you want.
Tips for Overbidding in court
Tips for Overbidding in Court: Keep Your Poker Face and Donâ€™t Over-Pay
A probate property that requires court confirmation allows for interested buyers to come to court and over-bid the initial offer.
There are important terms and conditions for probate salesâ€”terms that make them different from other real estate transactions. While you should always check the terms prior to making an offer, in general, the terms of the sale are as follows:
The property is sold â€œAs-isâ€
No repairs, including no termite or retrofitting
Seller pays for the escrow fees and title insurance fees
As an overbidder in court, if you are the successful buyer, you will purchase the property under the same terms and conditions as the party who made the original offer. Unlike other real estate deals, you canâ€™t ask for different terms in the hope of improving your chances of getting the property.
Once an initial offer has been accepted by the court, the minimum overbid in court is established according to a set formula dictated by the Probate Code: the accepted offer plus 10% of the first $10,000 plus 5% of the balance.
A property is listed at $200,000.
The accepted offer is $175,000.
The minimum overbid is calculated as follows:
.10 x $10,000 = $1,000
+ .05 x $165,000 = $8,250
+ Accepted offer $175,000
Minimum overbid $184,250
x .10 of minimum overbid
Cashierâ€™s check amount = $18,425
For the probate attorney and the court to allow you to overbid on the property, you must have in hand a cashier's check for at least 10% of the opening bid. Personal checks are not accepted. The cashierâ€™s check must be made payable to either the estate, the trust or the conservatorship. This information is available from the listing agent before you come to court.
When the judge calls the sale and you stand up to overbid, the judge will state what the opening bid is and set the increments for increases.
Here are some tips to increase your chances of being the successful purchaser:
Be prepared. Make sure your agent has reviewed the sale comparables with you in advance so you know you are purchasing the property for what you feel itâ€™s worth.
Be aware in advance and understand the terms of the sale. These terms are not negotiable.
Bring your poker face. Donâ€™t let the opposing bidder know what you are willing to pay.
Although the judge may say that the next bid is $5,000 more, you can always offer more than that to show your competition that you are serious. When a bidder jumps the bid higher than the judge dictates, the other bidder may back off.
Know your top dollar and at what price you are going to walk away from the property. Donâ€™t get caught up in the competition of bidding.
Again, make sure you have a cashierâ€™s check, that it is payable to the right party and that it is for at least 10 percent of the minimum overbid. If the check does not meet those standards, you wonâ€™t be able to play, no matter how much you want the property.
Feel free to call or email with any other questions.
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Studio City, Ca 91604
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