A Probate Sale occurs when the homeowner dies owning significant debts. If the estate does not have enough in the way of cash assets to satisfy creditor claims, then the property they own will be sold to pay off their creditors to the extent possible. If there is any money that is left over, that would be distributed to the family members or other beneficiaries, which would depend on whether or not the individual left a will.
Probate Homes are marked and sold just like traditional properties, wherein the real estate agents prepare a Probate Property List and show them to potential buyers. You should note here that anyone is free to make an offer on these homes, but sometimes the process becomes a bit more complicated.
The working of a Probate Sale
The probate process is not the same and varies from state to state. But, the court typically appoints an estate representative, who is popularly known as the Executor, when there is a will or an Administrator when there is no will. This individual has the charge of settling the estate, including it in the Probate Property List,and guiding it through Probate. A part of this process also involves the identification of the legitimate creditors of the deceased.
The executor is then charged with the responsibility of selling the estate property in the event of it being liquidated to pay creditors. The court typically offers an appraisal in order to set a listing price.
When at least one buyer, after going through the Probate Property List has put in an offer, the executor must petition the court seeking permission to sell the home. Then, a notification is sent to the deceased’s heirs and estate beneficiaries. If no one files an objection, the sale can move forward with the court’s permission.
If more than one offer is received, all the interested buyers must typically appear in court and submit their bids. The one who offers the highest bid wins, and the winner must hand over a cashier’s check for at least 10% of the offer price to the estate’s administrator or executor.
The good ones of buying a Probate Property
- Properties mentioned in the Probate Property Listcan sometimes be sold for reduced prices.
- If you are an investor and looking to save, this can be the best fit for you.
Should you buy a Home mentioned in the Probate Property List?
One of the biggest advantages of purchasing a home that is mentioned in the Probate Property List is that they typically sell for less than other homes in the area. If you are planning to scoop up a home at a significant discount, either for yourself or as an investment property, then you can get the best deal if you decide on a Probate Sale.
Best Cities for Flipping Houses in California
As a flipper, you need to definitely avoid some areas of California. For example, if you are looking to flip houses in the Bay Area, that would require a lot of forward planning. Only then you can guarantee a healthy profit from your venture. Here, getting the balance between affordability and desirable locations right becomes quite crucial. And this is the key to a successful flip.
With that in mind, we have curated some of the best places for Flipping Houses in California:
(1) Fresno: Are you looking for the ROI? Then, Fresno is no doubt one of the best cities for Flipping Houses in California. The reason being, the value of homes in Fresno is growing in gargantuan proportions than in other more exorbitant cities in California.
(2) Los Angeles: Los Angeles is a profitable area in California for fix and flips like none other. What’s more? The Orange County Register reported profits that averaged nearly $135,000 per flipped house in Los Angeles County, which is the highest in the State for Flipping Houses in California.
(3) Irvine: Are you hungry for some healthy flipping competition? Then, look no further than the city of Irvine. The Tech Powerhouse status of this master-planned city in Orange County contributed to the city’s immense popularity a few years ago.
(4) Ventura: Ventura is the last city that we would recommend for Flipping Houses in California. According to CNBC, this coastal city moped up a whooping $ 180,000 in gross flipping profits last year, which was among the highest in the US.
Final Thoughts: A huge plus point of Flipping Houses in California is that there is no need of a license. A great location, breathtaking scenery, and opportunities for some serious profit make California an exciting place for flipping. So, all you need to do is to take the plunge and start Flipping Houses in California today.