Opportunities, Risks, and What to Expect When Buying a Home Through Probate

In a competitive real estate market like Los Angeles, buyers are always looking for ways to get a deal. One path that sometimes comes up? Probate sales. These homes can be priced below market value—but they come with added complexity.

If you’re considering purchasing a probate property, here’s what you need to know before making an offer.

What Is a Probate Sale?

A probate sale happens when a homeowner dies without a living trust, and the court must step in to manage and distribute the estate—including any real estate. The property is often sold to help pay debts or distribute proceeds to heirs.

Why Buyers Consider Probate Sales

• Potential discounts: Probate homes can be priced below market, especially if heirs are motivated to sell quickly.
• Less competition: Some buyers avoid probate sales due to the extra red tape, which can create an opportunity for savvy or patient buyers.
• Unique inventory: Many probate homes haven’t been updated in decades—perfect for investors or those looking to customize.

What Buyers Need to Watch Out For

1. Court Confirmation May Be Required

If the probate sale requires court confirmation, the timeline can stretch out by several months. You’ll submit an offer and wait for the court to approve it, which opens the door for overbids from other buyers in court.

Pro tip: Some probate sales are independent administration of estates (IAE), which means no court confirmation is needed. Ask the listing agent up front.

2. "As-Is" Sales Are Standard

Probate homes are typically sold as-is, with no repairs or seller credits. The estate often has limited information about the property, especially if the deceased lived alone.

• Always get a thorough home inspection
• Budget for repairs or upgrades
• Don’t expect disclosures or repair negotiations the way you would in a traditional sale

3. 10% Deposit May Be Required

Unlike typical home purchases that use 3% earnest money, probate sales often require a 10% good faith deposit with the offer. Be prepared to have that liquidity available up front.

4. You Could Be Outbid in Court

If court confirmation is required, your accepted offer is not the end of the story. At the confirmation hearing, other buyers can show up and bid above your offer in a live court auction setting.

• Overbidding starts at your offer + 5% + $500
• You must attend court to stay in the game

5. Timelines Can Be Longer

Even in IAE probate sales, the process often takes longer than a traditional deal. You may wait weeks for court dates, attorney sign-offs, or procedural steps.

Plan accordingly—if you have a strict moving timeline or loan rate lock, a probate purchase may be too unpredictable.

What to Expect From the Paperwork

• Offer form: Typically written on a Probate Purchase Agreement (PPA), not a standard Residential Purchase Agreement (RPA)
• Court confirmation: If needed, the listing agent or estate attorney will guide you on the court date and bidding procedure
• Title and escrow: Work with experienced professionals familiar with probate to avoid delays

Who Should Buy a Probate Home?

Probate properties are ideal for:

• Investors and flippers
• Buyers with flexible timelines
• Renovators looking for long-term homes
• Cash buyers who can meet stricter deposit requirements

Final Thoughts

Buying a probate property in Los Angeles can offer a great opportunity—but it’s not for the faint of heart. You’ll need to navigate a legal process, be comfortable with risk, and be prepared for a few surprises along the way.

At the Stephanie Younger Group, we’ve helped buyers navigate probate sales with confidence. If you’re curious about pursuing this path, we can walk you through what to expect and connect you with probate-experienced lenders, inspectors, and attorneys.