Probates with real estate in Georgia are nothing new. It is the legal process following the death of a homeowner, where the property changes hands (a transfer of ownership) or is sold. But why would investors be willing to buy a dead man’s property? Well, because there’s profit to be made. Not everyone wants to inherit the property of a deceased relative. Moreover, most of the time, the recipient may not be able to afford the maintenance costs of another property and thus, may be willing to part with the home. This is where probate properties shine.
Pros and cons of a probate property
- Probate properties often sell for reduced prices, and thus investors find it hard to resist. It offers a tremendous opportunity to make money.
- Probates with real estate in Georgia can be particularly enticing for newbies who want to invest in real estate and, at the same time, don’t have a big budget. That said, it’s pretty hard to find the whereabouts of such probate properties.
- A probate sell is particularly suited for an investor who’s looking to scoop up the premises at a discount, either for himself or simply as an investment opportunity.
- Probate properties often have a lengthy closing process. It may not be sold unless it’s proven that the estate owes no taxes.
- The condition of the houses may not be too well. The home may require extensive repairs, thus diluting the profit that you may be hoping to get out of it.
- The deal may include extra legal fees, appraisal fees, or other forms of expenses.
How do probates with real estate in Georgia work?
- Are you willing to handle the estate? In that case, you would have to be named the executor by the court. This is only when there’s no will regarding the property. However, if there’s a will, the executor may be mentioned in the deceased individual’s choice.
- Once you are declared the executor, you would have to rope in a probate attorney to guide you through the probate process. Your lawyer would represent you, and you may confer with them as needed.
- When you take inventory of the property, gather all essential documents. This includes the will, the power of attorney, stocks, bonds, cars, debt, life insurance, and anything and everything.
- If you are planning to sell the property, it would be better to discuss the same with a real estate agent, particularly someone who has experience in handling probate properties. The agent will pull up the pricing of other similar properties in the area to determine the property’s asking price.
- Once you have the inventory of the requisite documents, you’d have a better understanding of the financial liabilities of the deceased homeowner. You’d have to notify the creditors to whom the deceased owed money and pay out their claims. Once you are done doing so, you would have to file the income tax returns for the deceased homeowner.
- The final step of the probate real estate process is to wait for the property to change ownership. If the house is not being sold in court, the property would be legally transferred to the beneficiary once all the bills and creditors are paid. However, if it is being sold in court, it needs to be listed and put on the market. Once an offer is made and the terms are discussed, a notice will be mailed to all concerned parties to get a 15-day time to object to it. If no one intervenes, the sale would be processed in court.
While probate properties do seem like a lucrative option to make profits, it has a complex process – one that doesn’t often sit well with real estate investors – particularly those looking for quick deals. Probate sales require unique contracts and documents that are not needed in the sale of other real estate properties, which makes it so complicated. This is why you should tread with caution while opting for probate properties and find an excellent real estate company or agent to guide you through the process.