Considering a Probate Sale? Here’s What You Should Know as a Buyer

Angela Johnson
Jun 10
3 min read

Let’s face it, buying a home is a big decision, and when you hear the words "probate sale," it can sound a little intimidating. But if you’re open to opportunity, probate sales might actually be a smart move, especially if you’re looking for a home with potential and a competitive price.

As your real estate agents, we're here to walk you through exactly what probate means, how the process works, and why a probate sale might just be the hidden gem you've been looking for.

What Is Probate, Anyway?

When someone passes away and leaves property behind, that property usually goes through a legal process called probate. It’s how the estate gets settled; debts paid, taxes handled, and what’s left distributed to the heirs.

If that estate includes real estate, and it needs to be sold to pay off expenses or divide the proceeds among beneficiaries, we’re looking at what’s called a probate sale.

So, Can You Buy a Probate Property?

Yes, absolutely! The property will need to be appraised and listed, just like any other home. But since the court oversees the transaction, it follows a slightly different path.

Here’s a simplified step-by-step of how the probate sale process usually works:

The executor files a petition to sell the home.
The property is appraised to determine fair market value.
The home is listed by an agent: The agent markets and shows the property to interested buyers like yourself.
An offer is made and reviewed by the executor. Counteroffers are possible.
Court confirmation happens. If accepted, the offer goes to probate court for final approval. This court date must be published publicly, and this is the point in time where other buyers could put in overbids. In California the minimum overbid price must be an amount equal to the accepted purchase price, plus five percent of that amount, plus $500. The court itself determines any further incremental overbidding amounts. Overbids must be presented at the court hearing and in the form of a cashier's check. As the buyer, it's recommended you be present at this court confirmation to defend your purchasing position.
Once confirmed, the deal closes, proceeds go to pay off debts or taxes, and any remaining funds are distributed to the heirs.

Why Buyers Like You Might Consider a Probate Sale

A few pros that make probate sales worth a closer look:

Lower Prices: These homes are often priced below market value, especially if they need a little TLC.
Clear Title: Probate helps clear any liens or title issues before you close.
Less Competition: Many people don't know much about probate sales, which causes them to steer clear of them, so you’re less likely to get caught in a bidding war.
Court Oversight: It adds a layer of transparency and protection for all parties involved.

Be Aware of the Trade-Offs

All that being said, probate sales aren’t for everyone, and it’s important to know what you’re getting into:

Longer Timelines: The court approval process can stretch out closing timelines.
Sold As-Is: Most probate homes are sold in their current condition, which may require additional repairs or updates.
Upfront Costs: You’ll likely need to provide a 10% earnest money cash deposit with your offer (due upon acceptance of your offer, held in escrow until closing), and court/legal fees may come into play.

Tips for Finding Probate Properties

If you're interested in exploring this niche, here’s how we can find available probate listings:

Check public records: Local probate courts list active cases.
Keep an eye on auctions: Some probate properties are sold this way.
Ask your agent for help: Communicating your needs to your agent is always the quickest way to get what you need.

FAQs We Hear from Buyers Like You

1. Can I finance a probate home? Yes, you can use a mortgage, but because probate homes often don’t include contingencies, you’ll need to be pre-approved and act quickly. A clean title is essential.

2. Are probate sales cash-only? No, but many executors prefer cash or quick-close offers. You’ll almost always need a deposit to be considered.

3. Can you avoid probate with a will? Sometimes, depending on the estate and local laws. But most estates—willed or not—go through some level of probate. It’s worth speaking to an estate attorney if you’re unsure.

Final Thoughts

Probate sales might not be as straightforward as a typical home purchase, but they can be an incredible opportunity if you’re patient, informed, and working with the right team.

If you’re curious about buying a home through probate—or want to know if this strategy could work for your budget and timeline—let’s connect! We’d be happy to help you explore what’s out there and determine if a probate property is a good fit for you.