How the Right Agent Can Get You a Cash Offer on Your As-Is Home
Managing the estate of a loved one who has passed can be hard, especially while grieving the loss. There can be a lot of paperwork and many details to decipher. Adding to the confusion, the remaining assets are often reviewed by a probate court.
What Is Probate?
Probate is defined as the “analysis and transfer administration of estate assets previously owned by a deceased person” (Investopedia).
Probate begins with determining whether the deceased had a valid, legal will. This document will often contain explicit instructions about how all assets, including real estate, should be distributed.
Probate law does vary significantly from state to state, so it’s important to be informed about the laws that affect you. These laws dictate things such as the following:
- Timeframe to file the will with the probate court after the death.
- Minimum property value to require probate.
- Amount of required taxes to be paid (probate, state, and federal).
(For more information about Virginia probate law specifically, check out this high-level overview.)
I Received a Home after Probate. What Do I Do Now?
If a property went through probate and you ended up with that home, you are legally allowed to sell. That piece of real estate has officially transferred to you, and you can do with it as you see fit.
That sounds great, but in reality, many of these homes do have lots of problems. The previous homeowner might have lived there for fifty or more years, doing fewer updates and less maintenance as he or she got older or sicker.
“Some of these homes in probate aren’t capable of being financed in a traditional sense,” says Ray Gernhart, real estate agent with Ray Gernhart and Associates. “The house isn’t in decent enough shape for a bank to consider it collateral. It needs to be sold for cash or to a person willing to put in a lot of money to fix it up, which isn’t always feasible.”
Work with a Real Estate Agent Who Knows Probate
If this is the situation you find yourself in, don’t worry! You are, by no means, “stuck” with this property. You just need the right real estate agent.
“If you don’t want to deal with a real estate contract that will never go to settlement, work with an agent who has a network of investors,” says Gernhart. “Even if the home has waist-high trash throughout, an agent who knows and works with investors can easily get your property sold in two weeks—cash, as is.”
What are the benefits of working with an agent and selling to investors?
- Selling “as is” truly means “as is.” You don’t have to put any time, money, or effort into improving the home.
- It’s cheaper for you because you avoid expensive repairs, carrying costs on the home, and closing costs.
- You can take what you want from the home and leave the rest. That means everything from appliances to anything of sentimental value.
- Investors will give you a fair market value for what the property is worth.
- You don’t have to deal with conditional appraisals.
- You don’t have to deal with a home inspection.
- You avoid having a cattle call of strangers coming through your home.
- You have more flexibility and time, potentially even staying in the home for several months after the investors take possession. This allows you to deal with all logistical details with less stress.
Why would investors do this? Many of them are looking to put a significant amount of money into the home in order to flip it or to rent it out for profit. It’s a win for everyone involved. Investors have the up-front cash and means to finance this, meaning they can make a lot of money off the home. You avoid the expense, stress, and time of fixing up the property, and you receive fair market value for its current state.
Because these homes are often older and were purchased a long time ago for a small sum of money (by today’s standards), many people who take possession of a home after probate are surprised at the offers investors are willing to make.
Properties out of probate are an equally great opportunity for anyone looking to invest in property. This applies to those looking for short-term gains (flipping) or those looking to invest in the home over years while living in it.
Whether you’re selling or buying properties out of probate, make sure you work with an agent that specializes in this subcategory of real estate. There are a lot of rules and regulations the agent must be aware of, and they also need an experienced, reliable core of investors to facilitate these deals.
Ray Gernhart and Associates has been in real estate for almost forty years, and we’ve helped people buy and sell just about every type of property! If you’re currently trying to navigate probate and you feel in over your head, reach out today. We have the experience and connections to make this a great experience for you!
