In the past few months I’ve spoken with several Executors and administrators who are responsible for a property in probate and they were confused about whether the best decision is to sell the estate home directly to a cash investor or not.
Part of the probate process is for notice to be placed in a local newspaper. This gives notice to interested parties (such as creditors). Because it is a public notice, the investors and real estate agents now know that a probate is in process. Those investors and real estate agents will research if the estate has a property. Then, their marketing begins!
Executors and Administrators tell me that they receive a lot of mail and phone calls from people wanting to purchase or list the property. They tell me that it is very overwhelming. Many of the mail pieces they receive will offer a purchase price for the estate property. This can prove to be problematic because the interior of the property has not been viewed, and experience shows once the investor views the interior, the price is adjusted. And, I’m not telling you it gets adjusted higher.
In my experienced opinion, selling a piece of property to an investor is not the best idea. And these are the top three reasons why:
- There are many people in the market ready to buy real estate and willing to pay much more than a cash investor.
- It’s very important that the California Association of REALTOR documents that need to be part of the transaction to protect the financial and legal rights of the estate and you as the Executor or Administrator need to be completed accurately. All the t’s need to be crossed and all the i’s dotted.
- The person that is purchasing the probate property is naturally looking out for their best interest, not the best interest of the estate.
Before you decide to sell the real estate, call me for a free no-obligation consultation at 760-912-8905. We can discuss your exact circumstances so you can make an informed decision.