What to Know About St. Louis Probate Sales
In your search to find great cheap investment properties, you might have come across one under a St. Louis probate sale. What is this kind of sale and what does it mean for you?
Here is what to know about St. Louis probate sales.
What is a St. Louis probate sale?
A St. Louis probate sale happens when the owner of a home dies and does not leave a will. When this happens, the home does not pass onto anyone in the family, and it instead goes to a real estate attorney or a representative that needs to sell the property. The money from the sale will then be distributed to members of the family.
This can be a great deal for buyers because the attorney or representative doesn’t want to hang onto the property for very long. Properties are usually priced below the true market value. However, these sales need to be approved and supervised by a court, so the whole process can be much lengthier and difficult than other ones.
How this sale happens
To make this sale happen, the attorney or representative will hire a real estate agent to sell the St. Louis property as is. No repairs will usually be made or offered, so it’s important to have a home inspection done to make sure there aren’t any serious issues with the property. With such a low price, the house usually gets several offers pretty quickly.
The biggest difference with St. Louis probate sales comes with the offer. When you make an offer, you must also make a deposit on the home, which must account for 10 percent of the price you offer. This isn’t a down payment. You’ll have to pay that as well, which will probably be another 20 to 30 percent of your offer. In some cases, that 10 percent will be considered in your down payment, but that’s not always the case.
If the seller accepts your offer, then the real negotiations can begin. The estate attorney selling the St. Louis property will petition a court to start the sale approval, but this can take some time for approval, usually about 30 to 45 days. During this period, the house may still be on the market, and other bidders can put in their own offers. They can come to your hearing and try to outbid you.
Finally if everything goes your way, the court can approve your sale, and you can buy the home. This is a long process, and it may not be for everyone.
Is a St. Louis probate sale right for you?
If you’re looking to purchase property quickly and with as few problems as possible, then St. Louis probate sales won’t work for you. These sales can take months to go through, and you might not have that time to wait on a property. Carefully consider your options and potential profit before making an offer on a probate sale.