You have been looking for a property in Florida for a long time, and once finally you find something that you like, your agent tells you that it is in probate. What are the advantages and disadvantages of buying that property?
What is a probate sale?
If someone dies with or without a will in place, probate administration will oversee the management and distribution of their assets. If that person happened to have debts, the Florida court would organize for their property to be sold at the best price possible so as to clear their debts. As a buyer, you will appear in court with other interested individuals to bid on that property.
Pros of buying property in probate
The main advantage of buying such property is that you can enjoy a lower price for a property. The judge orders an appraiser to find the exact value of the property and then sets a reasonable price to encourage buyers. If you are an investor, you can resell the same property for profit after buying it.
People also like probate sales because of less competition as compared to other properties. Since court involvement might take some time, most people stay away from probate sales, leaving you with very few individuals to bid against.
Cons of the probate sale
The pronounced disadvantage of a probate sale is the time it takes to complete the process. The court can drag probate for months, even years, as more buyers come in with higher bids. If you don’t have the patience, then it can be a challenging process for you.
Property in probate also lacks flexibility; the court doesn’t include contingencies. The executor isn’t bound to fix the house beforehand, so once the house is appraised and the value determined, you will get it like that.
Buying probate property isn’t right for everyone. However, if you have the patience and are looking to buy at a lower price and sell higher, you may want to consider it.