Talk to UsBuying a probate property
Probate and trust sales in California can be some of the best opportunities on the market, and some of the most confusing. Here's how they work from the buyer's side, and how to write an offer that holds up.
Why probate
A probate sale is the sale of a house owned by someone who has passed away, handled by the estate's executor or administrator. Most buyers skip them because they look complicated. That's the opening.
Families usually want a clean, timely sale, not a long renovation. That can mean a realistic price on a house with potential.
Many buyers pass on probate because they don't understand it. Know the process and you're competing against fewer people.
What you see is what you get. Disclosures still apply, so read them and inspect before you offer.
Notices, and sometimes a court hearing. Once you know them, they're just part of the timeline.
Ask the listing agent which one you're looking at. It changes how you write your offer.
A representative with full authority under the Independent Administration of Estates Act can generally sell without court confirmation. When required, a Notice of Proposed Action must be given to those entitled to notice at least 15 days before the proposed action.
Faster, and simpler for buyers.
Your accepted offer goes to a court confirmation hearing, where qualified buyers may overbid. The price must be at least 90% of the probate referee's appraisal.
Do all your homework before you offer.
If you have the right guidance, probate is not a problem. It's a hidden lane full of opportunities.
Matias Baker Masucci, on EveryLA Talks
ACTUAL SALE BY MATIASBefore you offer
On our court sales, offers come without contingencies, so all of the checking happens before you write. Six steps:
Review the title report, available reports, permits and any HOA documents. Ask about missing information and acknowledge receipt of the disclosures with your offer.
Never make a blind offer. We give buyers access to bring inspectors and specialists before they write.
A loan is fine, but there's no loan or appraisal contingency. Check your lender's condition rules, whether you can insure the house, and how you'd cover an appraisal gap.
Due within 24 hours of acceptance, by cashier's check or wire, to escrow or an estate trust account. Always confirm wire instructions by phone at a number you trust.
Confirm who occupies the property, any tenancy or possession terms, and what belongings remain. Do not assume a property will be vacant at closing.
Include the requested offer packet, signatures and disclosure acknowledgments. Complete the Probate Agreement Purchase Addendum (PA-PA), including buyer vesting, and the Probate Advisory (PA). Missing documents delay review.
With no contingencies, inspection, appraisal and loan problems are not a way out. If you can't close, your deposit may be at risk. Have your agent explain your contract before you sign.
ACTUAL SALE BY MATIASIf the sale goes to court
In a court sale, an accepted offer still has to make it through the hearing. Here's what to expect from acceptance to the courtroom.
The seller's side files the Report of Sale and Petition for Order Confirming Sale (form DE-260). We allow about 4 to 6 weeks from filing to the hearing; court schedules vary.
The listing agent keeps marketing and invites other buyers to the hearing. Expect it.
At the court confirmation hearing, the court reviews the sale and takes any overbids. Most Los Angeles probate hearings are at the Stanley Mosk Courthouse downtown.
For an accepted price of $10,000 or more, the minimum first overbid is the price × 1.05 + $500. On $1,000,000, that is $1,050,500. You can bid again, and the court sets the increments. Try the calculator below.
It depends on your price. An offer below market value may attract more interest from overbidders. A stronger price may reduce that incentive, but no one can guarantee whether another buyer will appear.
If another buyer wins, your deposit is returned, but your inspection and other due-diligence costs generally are not reimbursed.
Listings marked "court confirmation required" will go to a hearing. Call the listing agent before the hearing date.
COURT CONFIRMATION
Thinking about bidding?
Have questions about one of our listings? Ask about access, disclosures and offer requirements before you bid. Matias never represents both sides of his own listings.
Discuss the PropertyPrefer to talk? Call (310) 776-5145