Probate sales with court confirmation can be a stricter process compared to regular sales. Here are some of the "stiff rules" you should be aware of:
Minimum Offer: Your offer needs to be substantial. In many cases, it has to be at least 90% of the appraised value set by a court-appointed referee. This ensures the estate gets a fair price.
Deposit Upfront: Be prepared to put down a significant deposit, often around 10% of the offered amount. This deposit is typically in the form of a cashier's check.
Unconditional Offers Only: Forget about making an offer with contingencies like financing approval or inspections. Probate sales require bids that are firm and ready to go.
Court Confirmation Hearing: Even if your offer is accepted by the estate's representative, it's not final until a judge approves it at a court hearing. This adds another layer of time and uncertainty.
Overbidding: During the court hearing, there's a chance for others to "overbid" on the property. If someone offers a higher price (with a minimum increase set by the court), you could lose out on the sale despite your initial agreement.
Fast Timeline: Probate sales often have tight deadlines. You may need to move quickly with submitting your offer and finalizing the purchase after court approval.
These rules can make probate sales a less flexible option compared to traditional home buying. However, they also offer some benefits, like potentially finding a property below market value due to the court oversight.