Probate Sale Properties: Are They Investment Worthy?

General

Probate sale properties are absolutely investment worthy and can be lucrative for real estate investors. Whether they decide to buy & hold, rent out, or flip, the chances of profit-making are high in the case of probate properties. If you’ve been an avid investor or real estate agent, you must be familiar with the history of probate properties and what makes them a potential lead for buyers.

However, locating and closing such deals is a hectic task as these property sales require court approval which can be time-taking. While the court’s involvement can delay the sale process, it also brings plenty of advantages such as ownership security and zero chances of fraud. Duping and fraud activities are fairly common in the real estate industry and investors often fall prey to them. But in the case of probate properties, the ownership is monitored by the probate court, assuring the legality and genuineness of the property.

Are All Probate Properties Profitable?

Mind it, real estate investments are tricky and can turn into a blunder if one doesn’t assess or think it through well. Although a property may be genuine and undergoing probate sale, it doesn’t always make it profit-yielding. Other than the legalities, there are other considerations that should be made before making the final investment decision.

For instance, the location of the property plays a vital role in determining whether or not it will be profitable in the future. Similarly, the present condition of the property should also be inspected before agreeing to its sale price. Analyzing all these important factors will help you understand if the property under probate is worth investing in or not, no matter whether you intend to flip this house in Texas or rent it to tenants.

Where To Find Credible Probate Sale Leads?

Closing a successful probate property deal starts with finding credible leads. Finding probate property lists is not as easy as looking at local real estate listings. While these lists may have some probate properties included, they are not always advertised enough to get noticed by potential investors and agents.

So, to get credible probate sale leads, you’ll need to dig deeper. The following listed are some of the top ways to find the best probate properties worth investment.

  • Connect with your local real estate agent that has experience in dealing with probate properties
  • Subscribe to probate property lists online offered by reliable websites right from the comfort of your house
  • Contact a probate court clerk to get a list of recently filed probate cases
  • Build strong connections in the market to get updated leads

Other than these, one can also check obituaries to find out about people who have deceased and find out about their beneficiaries.

Benefits Of Investing In Probate Sale Properties

The following discussed are the top benefits of buying probate sale properties that make them a valuable investment.

  • Motivated sellers – In most cases, the owners of properties undergoing a probate sale are dead and there’s no bequeathed heir or have beneficiaries that are reluctant to take care of the property. As a result, the court or beneficiaries are motivated sellers wanting to get rid of the property ownership at the earliest. This comes as an advantage for the buyers who can get the property ownership at the earliest.
  • Less room for bargaining – Again, since the property owners are motivated sellers, they are in a weaker position of bargaining. In most cases, the probate property sale prices are less than the market rates. Hence, buyers can make a reasonable buying offer and have higher chances of closing the deal.
  • Great for flipping – Probate properties are ideal for flipping and one can make significant profits out of it. However, it is important to note that one should assess the property conditions and calculate the repair costs before negotiating the buying price. In some cases, the property may require heavy maintenance charges, making them unworthy of your money and time.

Final Note

Enough discussion on the pros of investing in probate properties, now let’s come to the challenges that come along. Especially for beginners, it’s important for them to consider all the risks before beginning with probate investments. Since the owner doesn’t have to disclose anything about the property during a probate sale, you could be investing in a property that needs heavy maintenance and turn out to be a bad investment. In case such a situation arises, you should walk away from the deal despite losing the 10% deposit amount.

Much like any real estate investment, probate sale investments come with their set of pros and cons. To make a successful deal, you need to be mindful and judge the leads well before making an investment. So, don’t hesitate! Make the most out of this lucrative opportunity, start investing today!

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