I have an attorney holding 3 properties in a probate situation. I have an investor interested in purchasing all of these properties at once and wants me to get them under contract. The attorney will not agree on a contract until an appraisal is done and says that he will not agree for anything less than 100% of the appraised value. Is this normal? Who should pay for the appraisal and when should I get a contract?
I meant to say contract in the title.
The attorney wants the highest and best price for the properties. The estates are appraised by the probate referee to determine the fair market value of the assets. The value of the asset(s) does not take into consideration the amount of debts or liens on the properties.
The attorney represents the PR (Personnel Representative) and the PR represents the estate. The attorney is looking out for the best interests for the estate.
Thank you for the info. So for my situation, would you recommend I personally pay for an appraisal and is an offer of 100% appraisal value really necessary in order for the court to approve the sell?
The lawyer has a duty to get the most for the estate as possible. The best way to do that is to market it to the widest available group of buyers and then take the highest and best bid. Sliding it across the table for less is not in their best interest. My guess is that your investor also has zero interest in paying full appraised value plus your fee on these properties. As an agent I run CMA's on properties to give the lawyer an idea of market value, but they generally get me a listing. If thats the case I then have the same goal as they do, get the owner (probate) the most money as I can.
Thanks for your help. Do you think suggesting an offer price based off of the appraised value through the county records? Or should I just suck it up and buy a legitimate apprasal on all three properties?
You're wasting your time. If the properties are selling for 100% of appraised value, there is no equity there for the investor. How can this investor be interested in purchasing a property without knowing the price first? Does he like the paint color?? Price is the only thing that matters in this arena, every property is appealing at the right price. Unfortunately the attorney has already told you there is no deal to be had here.
Probate is a fun real estate buzz word, but it does not mean the property is a good deal.