Losing a loved one in California is a painful experience. It becomes even more traumatic if the person didn’t have a will. You’re faced with wondering what to do with their cash, property and other belongings. The court might even order a probate sale and decide how to distribute the money.
What is real estate probate?
You’ll likely deal with real estate probate if the deceased person owned a home. This is called a probate sale. It occurs when a person doesn’t leave a will but has a significant amount of debt. The home is sold to repay the debts, and anything left goes to the heirs.
Selling a home during probate is different from the traditional way of selling a home. You’ll still have a real estate agent who markets the home and attempts to attract potential buyers. But that’s where the similarities end.
What you see is what you get
A house sold during probate is sold as is. The shape it was in when the previous owner passed away is how it’s presented to possible buyers. This is one reason homes sold during probate often require significant repairs.
Any potential buyer can get a home inspection before making the deal. A home inspection gives the buyer insight into the condition of the home. The inspection can also reveal if the home needs renovations as well as how much repairs will cost.
It takes longer to make the sale
Purchasing a home during a probate sale can take longer compared to a traditional sale. According to Money Geek, a probate sale typically takes 6 to 12 months. A regular property sale generally takes less than three months.
The process is generally longer because the probate court supervises the sale. Involvement by the court can make the process complicated. Estate administrators and heirs are also involved in the process.
One way to keep your heirs from being subjected to a probate sale is to have a will that states who receives your property upon your passing. If you have not begun the estate planning process, now is a good time to start.
