Chapter One- Probate; Why It's Not What You Think

INTRODUCTION 

            Every real estate agent or broker (depending on the state in which you practice) all have one challenge in common; where will they get their next sale? Traditional methods of finding buyers and sellers such as contacting FSBO owners, "farming" specific neighborhoods, hosting open houses, and pursuing "Expired" listings can be successful; however, they are often very competitive and leave agents weary. One avenue that remains constant and viable is estaterelated properties in probate, many of which are sold in the first 6-12 months after the owner passes.  

            As of this writing, probate will be the next hot market segment for real estate brokers, agents, and agencies. A few years ago, foreclosures, bank-owned properties, and short sales were all the rage because the housing market hit in 2006. Most available inventories came with a stigma related to the market's collapse. Now that the housing market is on the mend and short sales are not nearly as plentiful as they once were, the intelligent real estate agent is looking for the next big thing. 

            Congratulations! By acquiring this book, you have made your competitors appear to be less knowledgeable, less prepared, and less experienced. The result will be more listing agreements, buyer representation agreements, and closings. 

            Usually, if you say probate to a real estate agent, they tend to turn and run very quickly.  For some reason, real estate agents have this preconceived notion that the word probate equals legal hassles, costly closings that drag on forever, and properties that have been neglected and are ready for demolition. Although this could be the case with a probate property, the percentages of problem closings are no more than a traditional closing. 

            Most legal criteria have already been satisfied once a real estate agent becomes involved with a probate property. You won't have to go to court or meet with a team of attorneys unless you do something illegal, but your actions would have been illegal for a traditional closing. Negligent 

Misrepresentation or Omission is still wrong regardless of the type of property being represented. Since the Executor usually has the authority to sell the property within the estate and may not have handled an estate before, they often welcome any assistance in navigating the process through probate, particularly with regards to liquidating assets. 

             This book will educate you on how to find probate properties, market to the estate's Executor, represent a buyer interested in a probate property, etc. The most challenging part of securing any listing is finding a willing and able seller. Wouldn't it be great to drive down a street and know that the owner of the third house from the corner was going to be listing his home for sale within the next 30-60 days? This probably sounds too good to be true, but this is precisely how it can be with a probate property if you know what to do. This book teaches you what to do and when to do it. 

Chapter One 

Probate; Why It's Not What You Think 

 

            We touched upon the misconceptions about probate properties in the introduction of this book but let's take just a few more minutes to put your fears to rest when it comes to representing or purchasing a probate property. 

      Here are a few simple definitions of the critical areas of the probate process. 

            Decedent – A person who is no longer living and has died. Just as a taxpayer's possessions become his or her estate upon death, so d