You may be wondering what is the difference between a probate sale and trust sale? Well, today, we will go into detail the differences and how Trusted House Buyers can better serve you.
There are many questions surrounding a probate sale vs. a trust sale in San Diego. When dealing with a probate or trust sale, it is evident the owner of the property has passed and the estate is now selling their home. The major difference is if and when the court will be involved.
Let’s jump into what a probate sale is in the first place? According to Fridley Law, “A probate sale is what happens when a person dies without a will or estate plan. The state is then in charge of essentially offloading all the assets, which in many cases can include the person’s house.” Basically a probate sale is a court supervised administration of a descendent’s will (if there is a will). In a probate sale, the court will usually have a real estate sell the home, but the court will still have control over the process. Such decisions like the home price or when to list the home will be subject to the court’s approval, but there is usually advice taken from the real estate professionals.
The buying journey when dealing with a probate sale is very different than a traditional sale and usually follows these steps:
- Step 1: Submit an Offer
- Step 2: Executor Reviews the Offer
- Step 3: Court Hearing is Scheduled
- Step 4: Inspection and Appraisal
- Step 5: Offer Confirmation Hearing
- Step 6: Heirs are Notified
- Step 7: Closing on the Property
If this list seems overwhelming, well it is. Berkshire Hathaway Home Services explains, “Unsurprisingly, the cons list is longer than the list of pros. Probate sales are more complex, more time-consuming, and with more points of risk than standard real estate transactions. ” Going through a probate sale can be time consuming, stressful, and holds a high rate of uncertainty. Especially if you are dealing with a home that has not been updated for years, the sale of a house in “as-is” condition can be quite tricky to navigate. Realtor.com adds fuel to the fire, “If you decide to make an offer, that must be accompanied by a deposit totaling 10% of the price of the home. That’s in addition to your down payment, although this deposit can be folded into your down payment if the deal goes through. Once your offer is accepted by the estate’s representative, that’s not where the negotiations end. From there, the estate attorney has to petition the court to approve the sale. And as you might expect, courts move at their own pace; expect to wait 30 to 45 days (or even longer) for your day in court when you can claim your home.”
Not only is the financial investment significant, but the waiting game involved is very challenging for those trying to sell the property. During the 30-45 days or longer that heirs will be waiting to see if the sale was approved, in certain states the home can remain listed for sale which means there may be offers that can come in and outbid you.
A trust sale is much simpler than a probate sale, but it requires that the the homeowner that has passed to have put their home in a trust prior to the death. This The Crem Group expains, “A trust real estate sale is the process of selling real estate that is within a trust. It is much like a typical real estate transaction in that there is a listing process, a real estate broker involved, negotiations, and closing. Yet it also has the added level of specialized knowledge of conducting the whole process within the constructs of the trust, the specific players involved, the extended time frame of the transaction, and the increased legal jargon and documentation required.” When you have inherited a home, a trust can help you bypass the court system, but what if there is no trust in place? Well that is when the probate process that we explained above, comes into play. Now, if there are more than 1 trustee, for example, a group of siblings, it makes the trust sale that much more complicated. You have to deal with differing opinons on what to do with the property, not to mention dealing with heirs that do not all live in the same place.
Trusted House Buyers
When a loved one has passed, managing the sale of their home is clearly a complicated one. It can be a stressful and daunting experience for those whom the property was passed down to. To alleviate the headache of a trust sale or probate sale, the simplest solution is to sell the property to a reputable cash buyer in San Diego, like Trusted House Buyers. At Trusted House Buyers, we have the ability to provide a fair and honest cash offer for your home in the condition that it is in today. We can close usually within as little as 10 days so you and your family can move on from this headache with cash in your bank accounts. You will avoid the court process, dealing with real estate agents, and the uncertainties involved in dealing with a probate or trust sale. What sets us apart, is that we are a family run business here in San Diego and do not treat our clients in a one size fits all approach. To the contrary, we are able to tailor and customize the sales experience to meet the unique needs of our sellers and can work within your timeline. Give us a call today at 619-786-0973 to see how we can help you navigate the selling process and make it easier for your family.