Why Probate Properties Could Be The Best Deals in Fort Myers

Why Probate Properties Could Be The Best Deals in Fort MyersProbate is the legal process that happens when a person dies and the executor must collect all assets, itemize all remaining debts and then liquidate all property to pay debts and distribute assets. Unlike property in a trust, probate requires court approval and is a lengthy process with attorneys and judges. Despite that, here are why probate properties could be the best deals in Fort Myers.

A Motivated Reason To Sell

The probate process can be lengthy and complex, often taking several months to over a year to complete, depending on the size and complexity of the estate. During this time, the court oversees the administration of the deceased’s estate to ensure all debts are paid and assets are distributed according to the will or state law if no will exists. The necessity for court approval at every significant step can slow down the process, contributing to the extended timeframe. This delay can be particularly burdensome for executors and beneficiaries who are eager to settle the estate and move on.

Given these challenges, executors may have strong incentives to expedite the sale of estate assets, particularly real property. If the estate has few debts and sufficient liquid assets, the executors might prioritize selling property quickly to avoid the ongoing costs associated with maintaining the property, such as upkeep, property taxes, and insurance. Additionally, leaving property vacant can expose it to risks such as vandalism or deterioration. Executors also have to consider market conditions; if the real estate market is volatile or declining, selling sooner rather than later can prevent potential losses. Thus, while the probate process requires careful adherence to legal protocols, executors often balance these requirements with practical considerations to manage the estate efficiently.

This is an opportunity for an investor to present a reasonable offer, often still under fair market price, and engage the seller in negotiations. Understanding the process of probate allows a savvy real estate investor to help an executor quickly complete probate proceedings.

Your leverage as an investor is particularly strong in slow real estate markets where there aren’t a lot of retail buyers. Without a ton of offers coming in, the executor is eventually forced to take an offer to close escrow and distribute remaining assets.

The Lengthy Process Reduces Competition

Anyone who has ever bought a property through the probate process will tell you it requires patience. The process is long; it’s that simple. Because of this, not a lot of buyers want to engage in the process. This means you have reduced competition not just among standard consumer buyers hoping to get a deal, but many other investors who don’t want to be tied up in a lengthy deal. Most investors want to get in and out as quickly as possible.

Even if a property gets listed on the market, the notion of probate can be a significant deterrent, dissuading many potential buyers from even attempting to make a purchase. Probate is often perceived as a cumbersome and prolonged legal process involving the validation of a will and the distribution of a deceased person’s estate. The complexities and uncertainties associated with probate can be off-putting, particularly for buyers looking for quick and straightforward transactions. This aversion creates a unique opportunity for savvy investors who possess the time and patience to navigate the probate process. With fewer buyers willing to engage in probate property sales, the market competition is significantly reduced.

For an investor willing to invest the necessary time and effort, this reduced competition can be highly advantageous. Fewer interested buyers mean there might be little to no competing offers, allowing you to negotiate more favorable terms and potentially secure the property at a lower price. In such scenarios, investors can leverage their position to achieve a better deal, ultimately maximizing their return on investment. Additionally, the reduced competition can provide a less pressured and more strategic negotiation environment, where investors can thoroughly evaluate the property and make informed decisions without the rush typically associated with high-demand markets. This unique dynamic presents a lucrative opportunity for investors who are prepared to tackle the intricacies of probate, ultimately turning what might seem like a daunting process into a rewarding venture.

Being able to structure your deals as cash also gives you a leverage point against a lot of competition. Executors don’t want to go in and out of escrow. Once they accept an offer, they want it to close as quickly as possible without financing hold-ups.

Primed for a Quick Fix and Flip

Most probate sales are completed “as is”, meaning the buyer isn’t requesting any repair or credits during the escrow process. Executors like this because they don’t want to deal with the hassle of making any repairs as they work on all other aspects of closing probate.

Many probate sale homes are distressed to a certain degree but rarely to the level of distress of a foreclosure. The type of distress that a probate property is in often is the result of an aging homeowner unable to ideally maintain the home due to a limited budget or physical conditions. A foreclosure is often distressed because owners losing their home often do intentional damage out of frustration.

Because the probate home usually only needs limited repairs and updating, a fix and flip investor is able to get in and out of the property much faster. Of course, this is once probate approves the transaction. But once it has, investors are poised for a faster return on investment.

Keep an eye out on probate court lists. Use them as a means to find opportunities that other investors aren’t looking at. As you work through several probate properties, you will get a better understanding of how to work with executors and courts and efficiently close escrow to rehab properties and sell them for a profit.

These are not the only reasons why probate properties could be the best deals in Fort Myers but certainly are some of the most important.



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