We’re guessing that you’ve heard of people selling inherited homes. You’ve likely heard of people selling foreclosed homes. And we’re guessing you’ve heard of short sales. But have you ever heard of probate houses for sale? It’s worth knowing what a house sold in probate means and what the process looks like, especially in Wisconsin. A lot of buyers are keeping an eye out for properties sold in probate court as they can seem like attractive deals, though there are pros and cons for those involved. Let’s take a closer look at what exactly is probate and how to sell a house in probate in Milwaukee.
Probate Houses And How To Sell Them In Milwaukee
What Is Probate?
The first thing to understand is what, exactly, is probate? When a homeowner dies without making a will (a situation also known as intestate) or without bequeathing the house to another person, the house enters probate court and is then sold. When this happens, the state becomes the administrator of the house or property sale and makes decisions about the process.
The probate court’s main focus in a probate sale is to make sure that the property is promoted well and sold at the best possible price. To ensure this happens, the court will require certain steps and procedures that are put in place and followed.
In Wisconsin, any estate that is over $50,000 value has to go through probate, though there are exemptions. They include assets titled jointly with another individual, life insurance proceeds, retirement funds where a beneficiary other than the deceased person’s estate was picked, and if the assets are placed in a revocable living trust.
What Makes A House in Probate Attractive To Buyers?
Why would someone want to buy a house in probate in Milwaukee? The main reason would likely be the price the house is available at. Typically, a house in probate will sell for way less than it would otherwise and way less than other homes in the neighborhood. Buyers will look for probate listings in order to find a deal, especially since the situation likely means many of these homes are for sale as-is.
How Is A Probate Sale Marketed?
When a house is sold in probate in Milwaukee, it is marketed roughly the same as a regular home sale on the open market might be marketed. A probate attorney or estate representative will hire a real estate agent who then lists the property on the MLS. They will, in turn, show the property to potential buyers and handle negotiations until a sale is reached.
The listing price for the house is usually suggested by the real estate agent or via an independent appraisal ordered by the probate court. When a potential buyer makes an offer, the representative will then petition the court for a license that allows them to sell the house. The heirs of the deceased owner will be notified of these intentions and the sale will move forward, presuming that there no objections or legal challenges.
The court will then hold a session in which all interested buyers need to attend and submit their bids. If only one buyer shows up and makes a bid, they automatically get the sale, presuming they reach the minimum price set. Otherwise, the highest bid wins. That winner must then provide at least ten percent of the offer price right away in the form of a cashier’s check or their winning bid is void.
What Are Buyer Concerns About A Probate Sale?
What do buyers need to be concerned about when it comes to a probate sale in Milwaukee? One thing that buyers often have to consider is that the ten percent deposit usually isn’t refundable unless the court decides their winning bid is not, in fact, valid for reasons beyond their control. In that case, the buyer gets their money back. Otherwise, you should know that while a buyer can back out, but they won’t get any of that earnest money back.
What kind of reasons would a buyer have for backing out of a probate sale? Well, because the owner of the house is deceased, it’s likely that there will be little to no disclosures about unseen issues with the house. This also means that those issues will not be repaired until the potential buyer is able to do an inspection. If the buyer finds out after the fact that there are problems within the house or on the property that were not properly disclosed, they’ll be stuck with the house they’ve paid for. They do not have any recourse at that point, other than to walk away and lose their deposit. So it can be something of a gamble for buyers.
Sell Your House in Probate To A Real Estate Investor
If you’ve inherited a Milwaukee house in probate, that can present a whole slew of potential problems. Being stuck with a house you had no intention of managing, especially if it’s not located where you live, can make for a stressful situation. That goes double if the real estate agent hired by the court isn’t able to sell the house fast on the open market, where there are no guarantees.
Cream City Home Buyers can help you solve this issue by buying your house in probate and working with you on the best outcome possible. We can make sure you don’t have to worry about the house any longer and deal with it as soon as you receive probate, potentially even prior to it happening. Also, instead of waiting months for a deal to finalize, we can get it done in a matter of days without any hassles.
You might be wondering how we can buy a Milwaukee house when it goes into probate. Technically, you do need to wait for probate before selling a house you’ve inherited. However, as cash home buyers and investors, we can get a head start by taking a look at the property before you receive probate. And you can even reach out to us before you receive probate or meet with the court in order to put together a mutually beneficial gameplan.
The benefit of working with a cash buyer like Cream City Home Buyers is that we don’t need to wait on lenders or mortgages to buy the property. We don’t have to worry about third parties and we can buy the house much quicker than traditional home buyers on the open market. We don’t involve real estate agents so there are no commission fees. And we don’t make you pay any fees. A sale to us can be over in a matter of days compared to a sale on the open market that will take, on average, at least a couple of months.
The process starts when you reach out to Cream City Home Buyers and let us know more about your house and your situation. We can put you in touch with legal experts we’ve worked with in order to help guide you down the path to probate. And once there, we can work with you to make sure we can make a fair offer that succeeds and also works to get you the cash you deserve.