How to Finance a Probate Property Purchase
When an individual passes away and leaves their home to beneficiaries, the home may need to be sold to divide the proceeds among those beneficiaries. This is known as a probate sale.
If you’re thinking about buying a probate property, there are certain things you need to know about how to finance this type of purchase. Here’s what you need to know as a potential homebuyer for a probate property.
How Does Purchasing a Probate Property Differ From Other Real Estate?
Buying a probate property may be a bit more challenging than a traditional home purchase, but it can be a worthwhile process. It differs from other types of real estate purchases in the following ways:
- Probate court – When a property is in probate, a probate court must oversee the sales process to ensure that the distribution of proceeds is handled properly. The probate court will also need to confirm the sale to ensure it’s fair for all parties involved, including creditors and beneficiaries.
- “As-is” condition – Probate properties are typically sold in “as-is” condition, which means that the buyer will be responsible for any repairs. This can help reduce competition for the property and result in lower prices, but it can also make it more challenging to secure a traditional mortgage.
- Costs and timelines – With the involvement of probate court, there are additional costs involved, and the timeline will likely be longer than a traditional home sale. You’ll need to be patient and flexible when purchasing a probate property.
Financing the Purchase of a Probate Property
Because of the differences in probate sales, financing a probate property purchase also involves special considerations. In a standard home sale, the most common way to finance the purchase is through a traditional mortgage. However, this may not be an option for a probate property purchase, given the “as-is” condition of the home as well as uncertainties in the final price. Some of your options for purchasing a probate property include:
- Cash-only deals – These are an attractive option in probate sales as they reduce some of the uncertainty in the process, but it requires having enough cash on hand upfront.
- Probate loans and advances – If you’re one of the beneficiaries of a probate property, a probate loan or advance is a specific type of loan borrowed against your future inheritance that can allow you to buy out the property from other heirs or to help with estate expenses.
- Traditional mortgages – While a traditional mortgage may be more difficult to secure, it’s still possible. You may need to be willing to put a larger amount of cash down to get this type of loan for a probate property purchase.
Get Professional Assistance for Your Probate Property Purchase
With the additional steps, approvals, and challenges involved in financing and purchasing a probate property, it helps to partner with an experienced professional to assist you through the process. The Lyons Law Group, P.A. is pleased to be the probate attorney you can rely on in Pasco County, Hernando County, and the surrounding areas of Florida. We can provide you with the legal services you need for going through probate, handle a real estate transaction, and everything in between. Contact us today to learn more about the services we can provide as your probate attorney.
