Asset Erosion Due to Probate

East Bay Probate Sales

A probate sale erodes the family assets in two ways:

1. Less buyers. Buyers usually don't understand the probate process so they get scared. They are afraid of losing their earnest money deposit if they back out. A buyer usually has to put 10% earnest money up front. (Some people are afraid to go to court.)
2. Legal fees. The lawyer handling the estate has to be paid. The courts have to be paid. The probate appraiser has to be paid too.

These two losses can potentially cost the estate 20% of the the asset.

Something else:

1. Loss of time. A probate sale takes longer to sell than a regular sale, specially if the offer is financed as the buyer has to remove all contingencies before the seller can request a court date.
2. Break Up Loss. Sometimes the best thing to do is to keep the assets whole as they are worth more together than separately.

For these reasons, I'm suggesting to homeowners to prepare a will and a living trust if possible.

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