California Probate Sale Overbid Process
Articles,  Blog

California Probate Sale Overbid Process

You want to buy a property that’s a
probate property but you just found out that there’s an accepted offer and you’d
like to know if in California there is a process for over bidding. Well yes there
is and that’s what I’m going to be talking about today. Hi my name is Linda
Urbick with RealtyOne Group. The over bid process only
applies to any real estate that’s in probate which requires court confirmation.
Not all probate is going to require that some of them have full authority which
means when somebody receives an offer they’re going to sell it. But if it needs
court confirmation then what’s gonna happen is the offer will come in the PR or
administrator whoever is ever handling the probate. They’ll accept the offer and then
they will petition the court to set a hearing date so that the offer can be
presented to the court. At this point if anybody else is interested
in making an offer they can do that right there at the hearing. So what you
want to do is you’re going to have to find out what it was what the original
offer so that you will know the starting point. The formula in California
for over bidding on a probate piece of real estate is 10% on the first
$10,000 and then 5% of remaining 90 percent of the offer . So let’s just
say for example it’s a $500,000 You’ve got 10%
percent on the first $10,000 which is $1,000 then$490,000 times
5% you’ve got $24,500 so your total offer is going to be $525,
500 and that’s what you’re going to present. Keep in mind you
are going to need to bring with you to court a cashier’s check, 10% of what your offer is which is $52,500. Also you may
not be the only one over bidding. The original offer
can also step up and bid or someone else can come to the court.
as well. At this point you’re basically in an auction type of procedure. The
judge is going to then start to set more minimums that everybody’s going to have
to go up in increments and typically the increment is $5,000 so if you know that
you’re going to possibly have to go higher than your offer and you are willing
to do that be sure and be prepared. Because what you’re going to need to do
is bring cashier’s checks suggestion is because the judge will typically go up
at a $5,000 increment that you have how many you need to cover what your
final offer is going to be and do it in increments of 10% of $5,000 which is $500 Oce the offer is accepted there
will be no more, and it’s all based on price and there’s not going to be any
more negotiation. So in addition to understanding what the price is going to
be make sure you understand all of the terms in the original offer that was
accepted by the admin. Those terms are what you’re going to have to accept no
negotiations. The other thing to keep in mind is on probate sales they’re sold in
as is condition. There will be no repairs. The person who is administering the
probate knows very little unless they’ve lived in the house.
They will have to disclose everything that they know and give you certain
documents that are required by California law but you’re going to have to
buy it in as is condition. So be sure that you do your inspections prior to
making an offer and that you know exactly what you’re buying. So there
it is the formula and the process for over bidding on a home
that’s in probate in California.Any questions feel free to reach out I’m
just a few keystrokes away telephone email or text. Thank you so much for
watching I’ll see you next time you

Leave a Reply

Your email address will not be published. Required fields are marked *