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Probate Real-estate - Truth About Deposits

Truth About Probate Deposits

trusts - One of the questions which comes 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 merely for your probate sales which are checking court confirmation process. If you have been reading my blogs you need to know at this point this will be the last place we glance for investment probate deals as we utilize the newer probate law that allows us to put any amount of deposit we want. Sounds better huh?

probate - Like a Probate Agent if you are working with end users (clients who are looking to relocate) and you also go through the old probate court confirmation process compared to the buyer should place a 10% deposit in escrow with 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 in today's market. 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 however, not the closing so that you might be handling a buyer who only has $10K and must hold the seller closing cost credit.

trusts - If we have to convey a 10% deposit on top of their offer of $300K they are going to need $30K. You must as well think this may be a challenge? You bet it's very what are the results, this typical buyer doesn't look at a probate listing or yours or to make a proposal due to you as they just do not have the money. What exactly just happened is approximately 80% of the FHA buyers available who does will need to go through the court confirmation process to purchase a probate home recently been erased and a smaller buyers pie stays to purchase your probate listing or you as a Probate Agent building a sale cannot have great results.

For those agents who comprehend the probate law we use (this is just what I teach) compared to these FHA buyers with simply the 3.5% down, we might still result in the offer to this same house but add language to the offer which would pull the probate home out from the court confirmed sale process and into a typical sale process with minimum requirements. And also this means a first deposit helping to make sense. I take advantage of 1% to 3% with the offer price so a good buyer with simply 3.5% (FHA) down are capable of doing this. Probate Real-estate means more sales knowing your work.

When you recognize the process and you will take a court confirmation home out of that process, streamline it, you think you'll have more the possiblility to place information buyers into probate homes other agents don't have a clue how you can do. Also, many times we're just matching the buyer as well as the estate together representing both sides so we don't have even the competition you see today on your own local MLS. Just about everything in my market sells the very first week with multiple offers so you who've been working with FHA buyers with limited cash (need closing help) I bet are already making many offers without and luck.

For investors this isn't as big an offer with all the 10% deposit because mine place 25% to 50% down and some deals (additional nowadays) are paying all cash to add to their important thing. Being a Probate Agent it's your job to understand all these rules and short cuts and just how they can increase your clients offer or bring more net dollars to the estate. Probate Real Estate is really a goldmine for those who learn how to get this to niche work with them.