E291 What is a Strong Offer on Probate Real Estate?

<p>Is the highest offer the strongest offer? Not necessarily, especially in probate. Sometimes an heir or a co-executor believes they can get a higher offer. Then, all things being equal, we should take that offer. However, it’s unusual that two offers are identical. There are other factors to take into account besides the price.</p> <h2>3 Fs of probate homebuyers</h2> <p><img class="aligncenter size-medium wp-image-42956" src= "https://anthonyspark.com/wp-content/uploads/2022/11/3-Fs-of-probate-homebuyers-300x169.jpg" alt="3 Fs of probate homebuyers" width="300" height="169" /></p> <p>We use the 3 Fs to make sure the buyer is a good fit for a probate real estate sale.</p> <ol> <li>Financials</li> </ol> <p>An all-cash offer is the best offer. There is always the risk of a mortgage getting denied. However, some probate properties are well-suited for a traditional mortgage situation.</p> <p>We also want to see a good, healthy down payment, as well as substantial post-closing funds. In other words, the buyer should have uber financial strength.</p> <ol start="2"> <li>Fast</li> </ol> <p>We need to sell fast in probate, but we won’t acquiesce to a bad offer just for speed.</p> <p>A normal seller who doesn’t like a deal can reject an offer and continue to live in the home. But for an estate, the property is vacant. So, the estate is bleeding cash every month to pay maintenance, utilities, and existing mortgage.</p> <p>Also, any vacant property will fall into greater disrepair, especially over the winter. One bad winter can lead to much wear and tear. If the owner is alive and living in the home, they would know about a problem and take care of it. Whereas, in a probate property, the executor will have to keep checking in and find time to deal with issues that arise. Long-sitting vacant properties will have less value due to less upkeep.</p> <ol start="3"> <li>Flexible</li> </ol> <p>An executor cannot afford the time to handhold a first-time home buyer. The buyer needs to know what they are doing throughout the process.