You may not be familiar with this term and wonder how an inanimate property could be considered “deceased”. A deceased estate is a property that has been sold after the death of its owner. Although it is a difficult process due to the inevitable morbidity, buying a deceased estate can provide a great opportunity for first-time buyers and a strong investment for anyone looking to breathe new life into an asset.
Executors of an Estate
The executors of an estate have a primary motivation to sell the property at the market value. However, they are not motivated by the same profit-based incentives that the average seller. They are legally required to make sure the property is sold reasonably. Selling property is quick and easy, usually at an open auction. Sometimes, the beneficiaries of a will handle the selling process rather than the executors. The majority of times, it is the latter. However, the involvement of the bereaved may make the process less straightforward. While the more financially minded inheritor might have spent more time learning about the market, they will often be more focused on getting affairs in order, particularly if an unexpected death and a quick sale is their preferred option.
A deceased property may have been buried in paperwork for a good part of a year before it goes up for auction. Although it may be more difficult to find all the facts about deceased estates, the odds of you winning are high. You can be sure that a deceased estate will be sold on the first day it goes to market. It may even be at a bargain price.
Many people have preconceived notions about deceased estate property. This can lead to their being reversed. People who expect a bargain will often overbid their competition. You can review my bidding tips for last month to help you be more level-headed.
Grant of Probate
The ‘grant to probate’ is the legal guarantee that the seller can sell the house in their name and pass it on to you. Although the process for acquiring probate varies from one state to another, the risk is minimal. You should ensure the executor of the property or anyone else selling it has the appropriate probate. Make sure that the name on the title is not that of the deceased but that it is the seller. While inheritance disputes may resurface within families or among beneficiaries after the deceased’s death, they will not affect property sales that have been completed. It’s still worth having a lawyer review the contract before you buy.
As with any property investment, it is important to set a goal for what you want to do with the deceased estate before purchasing. The potential for renovation is a popular reason for purchasing deceased estates. Most deceased estates have been owned by older people, many of whom may not have lived in the house for long periods due to prolonged hospital stays.
This helps to lower the property’s market value, but it can also mean that some may need more than a few coats of paint and a little elbow grease. These opportunities are great for first-time property buyers with long-term plans to renovate the property. You don’t want to sell a property that isn’t finished in a favorable market. If the property requires a quick facelift, or a deeper reconstruction, then this information will be helpful to those looking to flip it.