Probate Property Sales
Court Supervised or Independant Representative
A probate is a type of real estate sale where a "higher entity", namely the Court, will be involved in the process of the sale which is governed by the California Probate Code.
Buyers may feel they are getting a "deal" when bidding on such a property, however, there is an "overbid" process in Court confirmation transactions, and like any property if listed at a very advantageous price, it may attract other buyers.
Offers are submitted, when using a Realtor, on specific forms for probate properties, and require by law at least 10% down payment for court-confirmation properties, with no contingencies to sell other property first. Court confirmation properties require offers to be 90% of the appraised value, so buyers should really forget about making lowball offers in these circumstances. However, a seller with full authority to sell without court supervision ('Independant Administration of Estates Act" administrator, or IAEA) has more freedom to accept terms and conditions, so knowing the circumstances concerning probate sellers are important for a buyer to understand prior to making an offer. The IAEA personal representative with full authority to act, given by the Court, generally can respond more to the prevailing market forces when negotiating with a buyer.