If you get your contact information to an agent, they’ll let you know when they have new properties that are about to go on the market. You might have a better chance at a good deal if you can be the first to make an offer. You might also want to hire an agent to represent you. Probate courts don’t require it, but having someone with experience on your side can help the process go a little more smoothly.
When you look for homes this way, pay attention to the date they were listed. Homes that were listed more recently are less likely to already have offers.
The homes listed on the website are likely being auctioned off very soon—potentially within the week. This doesn’t give you a lot of time to research the property before you put a bid in on it, so be careful. The court might also post public notices about probate sales in local newspapers or on bulletin boards at the courthouse itself. [5] X Research source
Sometimes walkthroughs aren’t allowed for probate properties. If you can’t get a walkthrough, ask for plenty of pictures of the inside and outside of the house. You can use those to look for problems as well. [6] X Research source Most properties have been appraised, so ask if you can look at the appraisal. [7] X Research source If you’re applying for financing, keep in mind that most lenders won’t cover more than the appraised value of the home. This is a long shot, since sometimes you can’t even get a walkthrough, but you might also try to bring an inspector along. Their take on the property can help lower some of the risks you face buying the house “as is” with no contingencies or conditions on the sale.
If the estate representative accepts your offer, they’ll file a petition with the court to approve the sale. The hearing will typically be set 30-45 days after the petition is filed. Even if the estate representative turns down your offer, you still might be able to buy the property. Watch the probate court website to see when the hearing is scheduled, and you can go and place a bid.
You might also enter into a contract with the estate representative to purchase the property at this time. But keep in mind that even if you have a contract, the probate judge will still have to approve the sale, and other people will still be able to bid on the property. [10] X Research source
This is called the “overbid” process, and it typically proceeds like an auction, with the judge raising the price for the property incrementally until there’s only one buyer left standing. Even if you didn’t make an offer to the estate representative (or if you made an offer but it wasn’t accepted), you can still attend the hearing and bid on the property. If you don’t have a currently accepted offer, you might need to file a petition with the probate court to participate in the overbid process. Contact the clerk of the probate court—they’ll have a form you can use if this is required. [12] X Research source
Judges raise the price of the property by specific increments set by probate law. Sometimes it’s simple, such as raising the price by increments of $5,000 with each round of bidding, but some probate laws call for more complicated formulas. To win a round, you have to match the price called by the judge. You can’t simply raise the previous price by a different amount and win, like you might in an open auction setting. If you’re outbid, you will get back any deposit you’ve made. This is usually the only way you’re going to get that money back. So if you’ve changed your mind and don’t want the house anymore, cross your fingers that someone else shows up at the hearing to overbid.
The judge will tell you exactly how much you owe, and probably give you some time to go to the bank if you need to get a cashier’s check to finalize everything.
If your mortgage lender backs out and you can’t find other financing, the deal will fall through and you’ll lose your deposit. This is why it’s so important to make sure you have funds in place before you start bidding on a property.
The contract sets the terms in place so that the judge can approve the sale. But even after the judge approves the sale, it remains subject to regular probate proceedings, which can drag on for quite some time depending on the size and complexity of the estate.
Expect the entire process to take a minimum of 6 to 12 months—although it often takes even longer.
