Specialty Sales

A probate sale is when a homeowner dies without specifying in a will who inherits their home or how it will be disposed of. Whether the next of kin to the decedent decides on a beneficiary to the home or decides to sell it, these cases are overseen entirely by the probate court, making the process fairly lengthy. If the heir(s) decide to sell, the proceeds from the sale will be distributed among them after closing. 

An experienced real estate agent should be chosen to handle a probate sale because they not only know how to work with estate attornies and the court, but they can also make recommendations on smart, quick updates that will maximize the sale value of the home. They can also help with navigating liens attached to the house on the buying and/or selling end.

On the buying end of a probate sale, it is important to know that most of these homes do not undergo any improvements prior to the sale, and some come with debts attached; they are typically sold as-is. There are additional deposits to consider and given the length of time, these cases take, probate sales are best reserved for those with the time and financial resources to fix up a home without time restraints.

A short sale, also known as a pre-foreclosure sale, is when a home is sold for a price less than the amount due on the current owner's mortgage. All proceeds from an approved sale go directly to the lender, and the remaining mortgage balance is either forgiven or a plan to pay off the difference is formulated. Short sales are typically the result of a sale rushed in order to avoid foreclosure, but can also stem from poor real estate market performance.

A short sale is the better option when compared to the usual alternative - foreclosure. The negative marks on the lendee's credit score are not as severe and the process is not as long, but there is still a heavy paperwork load that comes with a short sale. A real estate agent with short sale experience and market knowledge is crucial when deciding to take this route.

A bankruptcy sale is exactly that - the sale of a bankrupt property. There are three types of bankruptcy sales: 1) Chapter 7 (AKA: Liquidation); 2) Chapter 11 (AKA: Reorganization); and 3) Chapter 13. Bankrupt properties going to auction are posted by the local court rather than on traditional listing websites, and a primarily overeen by the court and anappointed trustee rather than the homeowner/debtor.

These sales are structured to be primarily in favor of the creditor rather than the buyer, meaning the same safeguards to protect buyers against future property-related problems are not implemented. They also tend to take a long time to close and can lead to contractual complications. Because of the significantly higher risk that comes with buying and selling bankruptcy properties, it is vital to speak with a knowledgeable real estate agent to decide if it is the right move for you.