Residents of Louisville and other parts of Kentucky may want to learn more about the probate sale, what it is and how it works. This type of sale may work for you when it comes to buying a house.
What is probate?
This type of sale happens when a homeowner dies. They may owe significant debts and not have the cash to settle with creditors. In this case, the estate administrator will sell the home to pay off the creditors, and money left over will be distributed to heirs.
Probate homes are sold through listings like a normal home sale. The administrator oversees the selling of the estate property and identifying the proper creditors of the deceased.
Most likely, the administrator will hire a real estate agent to list and sell the home. Buyers may need to appear in court, if there are several bids. The winner, with the highest bid, hands over a cashier’s check, for at least 10 percent of the offer price, to the administrator.
What are some pros of buying a house through probate?
Homes may sometimes sell for reduced prices. Investors who are looking to save money may find these properties a good option. Scooping up a deal might attract some buyers.
What are some cons of buying a house through probate?
There might be unknown defects in the property. The closing period might be lengthy. Appraisal fees and extra legal fees may apply to the sale. Additionally, a specialized real estate agent may need to be involved.