Offering on a probate property - Better deal?

EndlessStruggle

The property I was going to buy still hadn't had probate granted when I pulled out due to issues with the house.

It was 4 months at that point and supposedly a simple probate case.

If it isn't granted you may be in for a longer wait than you expect as there seems no rhyme or reason to it.

badger09

MobileSaver said:

fackers_2 said:

Is there scope that a lower offer tends to be accepted since there is no onward chain?

All other things being equal, you are less likely to get a lower offer accepted on a probate property than on a normal owner-occupier property.

Firstly it's more likely the asking price was determined by a professional RICS surveyor rather than a vested-interest estate agent and/or emotionally invested home-owner.

Secondly the executor or administrator has a legal obligation to act in the best interests of the beneficiaries so it's more likely they'll be looking for the fair market value as determined by the aforementioned RICS surveyor.

Thirdly the "no onward chain" makes it more attractive to buyers so more likely there will be competitive offers pushing the price up.

Of course, more or less likely doesn't mean you won't get lucky so just offer what it's worth to you. If your main criteria is a "good deal" then your best bet is a run-down property in a less-than-ideal location being sold by a private motivated seller...

^^^^^ This^^^^^

movilogo

Firstly, make sure your seller has got probate granted. Otherwise it may be waste of time as delay could be quite long.

Often probate property has multiple parties whom the EA need to speak with for accepting at a price. It may turn out that one brother is happy with price but one sister is not. Try to extract this info from EA on how many people are in decision making.

As nobody is living in the probate property, often the vendor/s are willing to get rid of it quickly, so they may accept a chain free buyer with a lower offer. 

I recently bought such a property and my chain free status certainly managed to get a good price. Remember, an empty property still require some upkeep. Many probate properties have very old decor and hence often not attractive to general buyers. But be aware that some developers may want to snap them up. 

There is no magic formula as every property price negotiation is somewhat unique - it all depends on market, your situation and vendor's situation. 

I do not agree with other poster who said a probate is less likely to accept a lower offer. By all means make and offer and see what they say. Then increase your offer accordingly. 

CruisingSaver

Hopefully nearing completion on my late Mum’s house. It was priced to sell and does need updating so we were willing to consider reasonable offers. The interest we had was unbelievable so many viewings and offers, including some that were ridiculously low.

For the low offers I took the view that they either weren’t serious or were trying to profit from my grief so they were refused very quickly and I refused to engage with them any further.

Others may take a different stance but this is mine.

cymruchris

I'm about to sell a probate property - although the executor is a solicitor, so they have the final say I'm sure - but I'll be wanting the best price possible, as whatever monies are raised will be invested into my own future. I'm in no rush, and the executor will be wanting best value for the estate, so I don't see it going 'cheap'. Particularly as it's in good decorative order with a modern bathroom, kitchen, garden and decent sized garage. I'm sure it'll appeal to a range of potential buyers - but in your case it'll depend on the property, location, condition and demand. I'm sure there will be a few bargains out there - but I don't think that generally you'll find them cheaper as you're hoping.

Flugelhorn

I sold a probate property for over asking, it was a good time to sell and a popular property (bungalow) - I only had to satisfy myself about the price, have come across many families where one beneficiary / exec is absolutely determined the property is worth X when others say they want to sell it for Y - ultimately they have to agree

mi-key

You are often less likely to get a probate property cheaper. Often the people who have inherited are not desperate for the money as it is just a bonus for them, so they are happy to hang on for the best price.

youth_leader

A few older friends of mine have sold their late parent's properties at auction because of the condition/distance etc, and most said they got more than the auctioneer had recommended as a reserve price. 

p00hsticks

mi-key said:

You are often less likely to get a probate property cheaper. Often the people who have inherited are not desperate for the money as it is just a bonus for them, so they are happy to hang on for the best price.

That argument works both ways though. Unlike owner-occupiers who many need to achieve a particular price in order to repay the mortgage and fund their next purchase, beneficiaries viewing their inheritance as a bonus may be happier with whatever they can get.

They'll also soon find out that maintaining an empty property while awaiting a sale can be both worrying and costly (council tax kicks in again six months after probate and unoccupied property insurance is pricy) which eats into their inheritance as each month passes, and is an incentive to try to get a quick sale.

silvercar

p00hsticks said:

mi-key said:

You are often less likely to get a probate property cheaper. Often the people who have inherited are not desperate for the money as it is just a bonus for them, so they are happy to hang on for the best price.

That argument works both ways though. Unlike owner-occupiers who many need to achieve a particular price in order to repay the mortgage and fund their next purchase, beneficiaries viewing their inheritance as a bonus may be happier with whatever they can get.

They'll also soon find out that maintaining an empty property while awaiting a sale can be both worrying and costly (council tax kicks in again six months after probate and unoccupied property insurance is pricy) which eats into their inheritance as each month passes, and is an incentive to try to get a quick sale.

Depends, I have friends in the age group to in all likelihood receive inheritances soon and (a) the estate will be split between siblings so ALL would have to agree to accept a low offer.
(b) I am the generation that were able to get interest only or endowment mortgages and some are relying on inheritance to either clear their mortgage or fund their retirement or help the grandchildren with a house deposit.

I wouldn’t automatically assume they will settle for a low price.