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Probate Real Estate - Truth About Deposits

Truth About Probate Deposits

trusts - One of many questions which comes up often from my probate clients, potential probate agents, and investors to become may be the Probate Deposit. For the most part, the 10% deposit rule is just for that probate sales which can be going through the court confirmation process. If you were reading my blogs you have to know right now this will be the last place we look for investment probate deals once we utilize the newer probate law that allows us to put anywhere of deposit we would like. Sounds better huh?

wills - Being a Probate Agent if you're working with clients (clients who are looking to relocate) and you have the old probate court confirmation process compared to the buyer should convey a 10% deposit in escrow making use of their offer. So let's break this down. You've got a FHA buyer, pre-approved, gold plated who has their 3.5% down but needs some closing help which is typical these days. While we are investing in a home at $300K their down is approx. $10K plus closing of about $14K for total needed of approx $24K. Most buyers have the down although not the closing which means you could possibly be coping with buyer who only has $10K and should possess the seller closing cost credit.

wills - When we have to place a 10% deposit track of their offer of $300K they'll need $30K. You must as well think this might be an issue? Without a doubt it is so what goes on, this typical buyer doesn't look at a probate listing or yours or make an offer due to you since they just do not have the money. So what recently happened is all about 80% of the FHA buyers on the market who does will need to go from the court confirmation way to buy a probate home has just been wiped out and a smaller buyers pie is left to get your probate listing or else you as a Probate Agent making a sale just cannot have great results.

For all those agents who view the probate law we use (this is exactly what I teach) than for these FHA buyers just the 3.5% down, we might still make the offer for 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. This also means in initial deposit making sense. I take advantage of 1% to 3% from the offer price so a buyer with only 3.5% (FHA) down can perform this. Probate Real-estate means more sales once you learn what you're doing.

Then when you realize the method and you may take a court confirmation home from that process, streamline it, you think you will have more opportunities to place information buyers into probate homes other agents don't have a clue how you can do. Also, often we are just matching the purchaser and the estate together representing each side so we don't have your competitors you see today on your own local MLS. Almost anything within my market sells the very first week with multiple offers so that you who had been dealing with FHA buyers with limited cash (need closing help) I bet happen to be making many offers without and luck.

For investors this is not as big an arrangement with the 10% deposit because mine place 25% to 50% down plus some deals (a lot more nowadays) are paying all cash to increase their important thing. Being a Probate Agent it's your job to know each one of these rules and short cuts and the way they could increase your clients offer or bring more net dollars towards the estate. Probate Real Estate is a goldmine for individuals who discover how to make this niche benefit them.