If you want to buy a relatively safe property in Minnesota at a discounted price, a probate sale may be what you are looking for. Most investors are keen on discovering where these sales occur because it gives them a good chance to make substantial profits. However, it also comes with its unique challenges.
How probate sales come about
When someone dies without a will in Minnesota, the court must appoint a personal representative to manage their estate. In most cases, a family member or close friend of the deceased will fill this role. If the decedent leaves behind any assets, the personal representative is responsible for distributing them and also paying all their debts and taxes.
Since there are no provisions in a will on how the deceased assets are to be divided among their heirs, most of them will need to be sold and the proceeds distributed following Minnesota’s intestacy laws. Usually, the spouse gets the greater share, and the rest is split evenly among any living children or descendants.
This process of selling the deceased assets in Minnesota is called a probate sale. It is overseen by the court and usually takes around six to nine months.
Reasons why probate sales are hotspots for investors
Probate sales are a great opportunity for investors to get their hands on some good deals. The court is usually very keen on having the deceased’s assets sold as soon as possible so that the heirs can start receiving their share of the proceeds.
This means that in most cases, the prices offered during a probate sale are lower than what you would find on the open market. And since these sales are often made quickly, you also don’t have to worry about getting into a bidding war with so many people like in an auction.
It’s worth noting that most probate sales are made “as-is,” which means that any repairs or renovations will be your responsibility. If the property has so many hidden problems, you could end up buying a money pit without even knowing it.
Anything that involves investing your hard-earned money requires a long hard look at its pros and cons. While probate sales are one of the best places to get items at a good price, they may also come with problems that could even cost more.