The Pros and Cons of Probate investment
Thursday, February 19, 2015
The pros of buying probate properties
With the cost of maintenance, tax and other costs the executor may wish to sell the property as quickly as possible; if this is the case, then it may be possible to get the property at a good price as a result.
The prospect of lengthy court proceedings means that investors tend to avoid probate properties. This means there is less demand for them as a whole, and true to the notion of supply and demand, it then makes the properties more affordable.
The cons of buying probate properties
A property is unlikely to go through probate court too quickly; however, it is possible to speed up the process by offering to pay for the house in cash. However, due to the complicated processes involved in probate law, it can still take some time, even with such an offer on the table.
The sale of the house could be further complicated by the possibility of debt being attached, fortunately though two thirds of houses in probate court are not affected by such a problem.
Slow sales can also be a source of real frustration , especially during the winter months when the potential for repairs increases.
Although there are definite cons of buying a property under probate, they’re far outweighed by the pros. With less demand for such properties, the financial benefits make probate properties an ideal investment.
AV Surveyors and Valuers can assist with any probate valuation with understanding and professionalism. If you need assistance in this area please give us a call