Hi everyone. Question about title/probate: A gentleman responded to my mail campaign stating that he was the executor for the property owner and that she had passed away a number of years ago. The way he worded the email it sounds like it was his wife but it wasn’t titled to them jointly. He said that it was impractical for him to transfer title since he was out of state and he told the taxing authorities that he was just going to let it go to auction.
The property is only worth about $5,700. Is this something I could potentially help him work through or would it be too cumbersome for what the property is worth? I’m assuming probate would have to be opened/reopened in the state the property is in (Arizona) and it could take some time (not to mention lots of legal fees)? Does anyone have experience with this type of situation? Thank you all so much in advance!
If that’s truly the value, it sounds like it wouldn’t be worth the trouble, unless he will give you the property for basically nothing.
There may be some value in learning how to hand this process on a cheap property. You never know, the same problem could come up with a property that will yield you $100K, and it’s always good to be prepared when those situations come up, but looking at this property on its own, I probably wouldn’t mess with it.
Thanks a bunch Don! That’s what I’m leaning towards. Similarly sized parcels nearby have sold for about that so I’m confident it’s not worth more.
Out of curiosity, do you know what would have to be done for something like this? I’m assuming that if I’m offering much lower this guy won’t do it - he sounds like he’s just done with the hassle - but I’d definitely like to figure out what’s involved for higher stakes situations in the future.
@mmehring96 If you’re looking to buy a property going through probate, the process is a bit more involved than a straight up cash purchase.
You’ll need to work with the executor or administrator of the estate (depending on whether there’s a will). If the seller you’re talking to isn’t the executor, find that person and talk with them.
Make sure the property is being probated and that the executor has the legal authority to sell it. Once you’ve confirmed that, conduct your usual due diligence, like inspecting the property and checking for liens or other title issues.
After that, you can submit an offer to the executor, but keep in mind that the sale usually has to be approved by the probate court. Sometimes the court will require the property to be publicly listed to make sure it’s being sold at a fair price, and even after your offer is accepted, other buyers might be able to make competing bids.
Once the court approves the sale and any required waiting periods are over, you’ll proceed with the closing and transfer of title just like any other property transaction.
It’s a good idea to consult with a real estate attorney who’s experienced in probate to make sure everything goes smoothly.
Thanks again Don! Interestingly enough, same campaign, I got a response with a similar, but more complex situation. I actually ended up reaching out to an attorney for a quote since it involved a small portfolio, but the legal fees alone would have been 1/3rd to 1/2 of the total property market value - so probably not worth it.
Good to know what’s required though. Admittedly, this was a first small-scale mailing campaign, but 2 hits with a probate situation would seem to imply it’s a fairly common situation.