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Probate Real Estate - Truth About Deposits

Truth About Probate Deposits

trusts - One of the questions which will come up often from my probate clients, potential probate agents, and investors to be may be the Probate Deposit. Typically, the 10% deposit rule is only for the probate sales which are studying the court confirmation process. If you've been reading my blogs you need to know at this point that will be the last place we look for investment probate deals once we make use of the newer probate law allowing us to position any amount of deposit we want. Sounds better huh?

trusts - As a Probate Agent in case you are coping with clients (clients who are looking to move in) and you feel the old probate court confirmation process compared to the buyer will need to convey a 10% deposit in escrow making use of their offer. So let's break this down. There is a FHA buyer, pre-approved, gold plated who has their 3.5% down but needs some closing help that is typical nowadays. If we are buying a home at $300K their down is approx. $10K plus closing of around $14K for total needed of approx $24K. Most buyers possess the down however, not the closing so you could be dealing with a buyer who just has $10K and must hold the seller closing cost credit.

wills - As we need to convey a 10% deposit track of their offer of $300K they will need $30K. You do too think this could be an issue? Without a doubt it is so what are the results, this typical buyer doesn't look at a probate listing or yours or to make a deal due to you as they just don't have the money. Just what exactly just happened is about 80% from the FHA buyers on the market who would have to go with the court confirmation tactic to buy a probate home has just been erased along with a smaller buyers pie is left to purchase your probate listing or else you as a Probate Agent building a sale cannot be successful.

For those agents who view the probate law we use (this is exactly what I teach) than for these FHA buyers just the three.5% down, we might still make the offer to this same house but add language towards the offer which would pull the probate home from the court confirmed sale process and in to a typical sale process with minimum requirements. This also means in initial deposit making sense. I take advantage of 1% to 3% with the offer price so even a buyer with simply 3.5% (FHA) down can perform this. Probate Real-estate equals more sales if you know what you are doing.

Then when you understand the method so you will take a court confirmation home away from that process, streamline it, do you consider you'll have more opportunities to place details buyers into probate homes other agents posess zero clue the way to do. Also, many times we're just matching the buyer and also the estate together representing either side therefore we don't even have your competitors the thing is today on your local MLS. Almost everything within my market sells the very first week with multiple offers so that you who have been working together with FHA buyers with limited cash (need closing help) I bet have been making many offers without and luck.

For investors this is not as big an offer with the 10% deposit because mine place 25% to 50% down and some deals (many more nowadays) are paying all cash to increase their bottom line. Like a Probate Agent it's your job to know each one of these rules and short cuts and how they are able to increase your clients offer or bring more net dollars for the estate. Probate Property is really a goldmine for individuals who discover how to get this niche benefit them.