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Probate Real-estate - Truth About Deposits

Truth About Probate Deposits

wills - One of many questions which will come up often from my probate clients, potential probate agents, and investors to be may be the Probate Deposit. For the most part, the 10% deposit rule is just for the probate sales which can be going through the court confirmation process. If you have been reading my blogs you have to know right now that this may be the last place we glance for investment probate deals as we make use of the newer probate law allowing us to place anywhere of deposit we wish. Sounds better huh?

wills - As a Probate Agent in case you are working with customers (buyers who want to relocate) and you also have the old probate court confirmation process than the buyer should convey a 10% deposit in escrow using their offer. Why don't we break this down. There is a FHA buyer, pre-approved, gold plated who may have their 3.5% down but needs some closing help which is typical these days. While 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 although not the closing so that you could be coping with buyer who only has $10K and must have the seller closing cost credit.

trusts - As we must place a 10% deposit up with their offer of $300K they'll need $30K. So do you think this might be a challenge? You bet it's so what happens, this typical buyer doesn't consider a probate listing or yours in order to make a deal due to you because they just do not have the money. So what just happened is approximately 80% with the FHA buyers available who would will need to go through the court confirmation tactic to purchase a probate home has just been destroyed plus a smaller buyers pie is left to buy your probate listing or else you as a Probate Agent creating a sale just can't make it work.

For those agents who view the probate law we use (this is just what I teach) compared to these FHA buyers with simply the 3.5% down, we would still increase the risk for offer to the same house but add language for the offer which would pull the probate home out of the court confirmed sale process and right into a typical sale process with minimum requirements. And also this means a deposit helping to make sense. I personally use 1% to 3% with the offer price so even a buyer just 3.5% (FHA) down are capable of doing this. Probate Real Estate equals more sales once you learn what you're doing.

So when you realize the procedure so you will take a court confirmation home from that process, streamline it, do you think you'll have more possibilities to place information buyers into probate homes other agents don't have a clue the way to do. Also, often times we're just matching the buyer as well as the estate together representing either side therefore we don't have the competition the truth is today on your own local MLS. Almost anything in my market sells the very first week with multiple offers so that you who have been working with FHA buyers with limited cash (need closing help) I bet have been making many offers without and luck.

For investors this isn't as big a deal with the 10% deposit because mine place 25% to 50% down and a few deals (many more these days) are paying all cash to include in their main point here. As a Probate Agent it's your job to know all these rules and short cuts and just how they can enhance your clients offer or bring more net dollars for the estate. Probate Real Estate can be a goldmine for those who understand how to get this niche benefit them.