Probate Real Estate Investing: Guide for Buyers and Sellers in Lagos, Nigeria
Probate real estate has repeatedly demonstrated that it belongs among today’s most remarkable purchase techniques. At the very least, investors who can purchase residences in probate may come upon a tempting deal that is too good to pass up. It’s worth mentioning, though, that the process of obtaining a deal through probate differs from what most investors are used to. Buying property in probate has its own set of rules, and it could be in your best interests to learn them. Understanding the fundamental elements of the probate real estate process, if nothing else, could help you discover your next purchase. What better approach to learning about the procedure than glean as much information as possible from this probate real estate guide?
What Is Probate Real Estate?
After a homeowner’s death, real estate probate is the legal procedure by which the property is transferred to someone else or sold. It’s another way of characterizing the process of a decedent’s will being processed in court – albeit a special court. It refers to the previous owner’s home in the case of real estate.
According to the Branch Banking and Trust Company, “an executor of the estate is appointed to manage the deceased’s business and handle the estate during the probate proceedings.” Properties allocated by a will (or all assets in the absence of a will or even other ownership forms) are subject to probate.”The administration of a deceased person’s will is handled through the process of probate. Typically, said administering would include a home – the same home that probate real estate investors are clamoring for.
You see, not everyone wants to inherit property from a relative who has passed away. Why would investors be interested in probate real estate properties if they aren’t even mentioned in the deceased’s will? The solution is straightforward: there are fantastic bargains to be acquired. The recipient may be unable to afford the costs associated with the property and, as a result, may be more eager to sell the home quickly; this is where investors come in.
Investors may capitalize on the new owner’s lack of desire to acquire a new property. Their loss of interest in the property encourages them to sell it, and patient investors may profit.
- The Executor of the Estate. They will specify whether the property will be passed on to an heir or sold–it must be selected before the probate process can commence. If a decedent’s will does not specify an Executor, the court will appoint an Administrator to carry out the duties.
- Property Appraisal. If the property is to be sold, the Executor will set a listing price. The list price will be established following an appraisal by a real estate agent with competence in probate sales.
- Property Listing. The property will be listed on the market after the listing price has been determined. The property’s real estate agent will advertise it like any other home, utilizing signage, websites, and other methods to entice a high bid.
Approval and Sale. Once an offer has been submitted, the real estate agent will work with both parties to negotiate the terms. All heirs of the estate will receive an official notification stating that they have 15 days to object to the property’s sale. If no objections are raised, a court date will be set for the sale of the residence to be officially completed.
Real Estate Investing: How Long Does it Take to Get a Will?
The probate process takes an average of two years, but it might take longer based on various factors. Because the many legal actions linked with the process take time, probate might take a lengthy period. Furthermore, the state and municipal legislation in the area where the property is located may impact the entire timeline.
Probate can take as short as six months in some circumstances, although this is not always the case. Investors who have worked with probate properties know that the existence of a will can substantially expedite the process. It is the case because a will indicates that the estate has already been designated to a specified beneficiary. After then, the heir can determine how to proceed with the property.
How to Stay Away from Real Estate Probate?
Homeowners can escape probate by putting all of their assets into a revocable living trust. It is a written document that specifies who will inherit a homeowner’s property after they pass away. To do so, a homeowner must first construct a trust document, after which they must transfer any assets into the trust. If you own property or other significant assets, you are not compelled to create a trust, although it may be beneficial in the future. While it may appear depressing, it is typical for people to create a living trust (or will) to plan for the future.
Although legal assistance can be invaluable as you navigate the process, you do not need to hire a lawyer to create trust. A revocable living trust, when done correctly, can help homeowners, or more specifically their trustees, avoid probate court after their death.
Probate Real Estate Investing: How to Purchase Probate Real Estate
Real estate investors interested in probate deals should educate themselves on the process first. If you’re looking for probate real estate deals to invest in, I propose using the following method:
- Learn as much as you can about how it works.
- Obtain a list of properties that are in the process of being probated.
- Make a marketing campaign and see it through.
- The entire procedure is outsourced.
The following section will break down each phase of buying probate real estate and how you should conduct a thorough probate marketing campaign for more information.
If you’ve read this far, you’ve already accomplished what we consider to be the most crucial step in buying probate real estate: educating yourself on the process as a whole. However, we cannot recommend purchasing any property that has been designated as probate unless you are sure you understand what you are doing. So, before you start making offers on every probate property that comes across your path, educate yourself on what to expect. Only then will you discover that the entire process is as profitable as it can be.
Proceed to obtain a probate list once you are confident with your understanding of the process. A probate list is what it sounds like: a list of all the residences in probate in a given area. As probate properties open their doors to the public, you’ll almost always be able to purchase a list. Some communities, however, do not sell lists. If you live in an area where probable lists aren’t available, or if you don’t want to pay for one, all you have to do is go to your local courtroom – probates are public information, after all.
- Marketing to Probate Listings
Create a direct mail marketing campaign with the names and addresses you have. The content should be tailored to those in charge of probate properties and resonate with your target demographic. Postcards, flyers, and even newsletters are examples of excellent direct mail operations. Given the nature of your campaign, more customized messages, such as handwritten letters may be the most effective. The rationale for this is that you want to come out as genuine rather than spammy. Depending on the number of owners you’re trying to contact, writing a letter (even if the message is the same) can go a long way toward reaching out to the right people.
It’s time to automate your hard work now that you’ve established a solid lead generation procedure. Outsourcing comes into play in this situation. Outsourcing is hiring someone from outside your organization to execute work for you. It’s frequently done to free up time in your schedule so you can accomplish more. To save time, many real estate investors turn to outsource for simple work. Consider hiring a virtual assistant to do things like public research documents or prepare email lists. You might also hire someone to send your completed direct mail campaign on time if you outsource it. While outsourcing does entail relinquishing control over all parts of a project, it is also beneficial.
What is the Best Way to Sell a Probate Real Estate Property?
To sell probate property, the seller must first submit a petition to open probate. The seller may compel to have the property inspected and appraised. After that, the seller should connect with a real estate agent who specializes in probate sales. “Once the estate’s representative approves your offer, the negotiations do not finish,” according to Realtor.com. The estate counsel must next ask the court to get the sale approved. Expect to wait for 30 – 45 days (or possibly longer) for your day in court to claim your home.”
While each step is comprehensive, approach it with caution to ensure that nothing slips through the cracks. It means that anyone interested in selling probate real estate can expect lengthy legal proceedings. Keep track of deadlines, and have all the paperwork you’ll need to sell the house. You can get a potentially terrific deal on a property if you are patient and prepared.
Take Advantage of Real Estate Deals Today!
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