Navigating Cash Investors in Probate Sales: A Thoughtful Approach

Dear Reader,

I hope this message finds you well during what must be a challenging time. Managing the sale of a loved one's home, especially in the context of probate or through a trust, is undoubtedly a complex undertaking, further compounded by the emotions tied to recent loss. Today, I'd like to delve into a topic often encountered in these situations – navigating cash investors in probate sales and provide you with a thoughtful approach

Understanding the Investor Landscape:

Investors, by nature, seek profitability. While various types of investors exist, they share a common objective – acquiring properties below market value to yield a profit.

1. Quick Transactions, Modest Enhancements:

   Companies offering swift cash transactions, often associated with big tech, tend to acquire homes below market value without substantial improvements before resale.

2. Fix and Flip Investors:

   Another category, known as fix and flippers, purchases properties below market value, invests in renovations, and subsequently sells at an increased price. Their risk is elevated, and they seek significant profit margins.

3. Buy and Hold Investors:

   This group focuses on long-term returns and cash flow. To achieve this, they, too, aim to purchase properties below market value.

The Consistent Factor: Below Market Value Acquisition:

Regardless of the investor type, the shared strategy involves acquiring properties below market value. However, a critical insight emerges – the more exposure a home receives on the open market, the more showings it attracts, leading to increased offers and, subsequently, a higher sales price.

Significance of Open Market Sales:

Opting for an open market sale initiates competition, typically resulting in a superior sales price and increased profitability for the seller. Although investors may promise swift transactions, in the context of the 8-12 month probate process, immediate gains may be limited as estate proceeds remain inaccessible until probate concludes.

No Repairs? Open Market Facilitates That Too:

The notion of avoiding repairs is not exclusive to investor transactions. An open market sale, exposed to a diverse pool of potential buyers, often yields offers from those willing to purchase without necessitating repairs. I have successfully facilitated numerous such transactions, even when properties required some attention.

Final Considerations:

In this intricate period, my intention is to assist you in making well-informed decisions for the estate left behind. While cash investors may offer expediency, the advantages of an open market sale, including heightened competition and potentially greater profitability, should not be understated. Should you wish to explore this topic further or if there are other matters on your mind, please feel free to reach out.

Wishing you strength and clarity,

Jeremy Higgins, Certified Probate and Estate Specialist

Jeremy Higgins has been serving probate and trust administrators and executors for 18 years. 80% of his business in 2023 involved in Probate and Trusts sales. He is a licensed Realtor eXp Realty and has been certified through the California Association of Realtors as a Probate and Trust Specialist. He and his team serve the following areas:

Sacramento County: Sacramento, Elk Grove, Citrus Heights, Folsom, Rancho Cordova, Galt, Isleton

Yolo County: Davis, West Sacramento, Woodland, Winters

Solano County: Fairfield, Vallejo, Vacaville, Dixon, Suisun City, Benicia

Placer County: Auburn, Roseville, Rocklin, Lincoln

El Dorado County: Placerville, South Lake Tahoe, El Dorado Hills

Sutter County: Yuba City

Yuba County: Marysville, Wheatland

Sonoma County: Santa Rosa, Petaluma, Rohnert Park, Sebastopol, Windsor, Healdsburg

Napa County: Napa, American Canyon, Calistoga, St. Helena, Yountville

San Mateo County: Redwood City, San Mateo, Daly City, South San Francisco, Menlo Park, Palo Alto

San Joaquin County: Stockton, Lodi, Manteca, Tracy