Q. Probate sales list an overbid amount. What is an overbid and how is it determined?
A. Before a court date is set, there must be an accepted bid on the property. But the accepted bid is not necessarily the final bid. Once there is an accepted bid, additional overbidding at the court confirmation follows a specific formula. The opening bid must exceed the initial bid on the property, as follows:
- The amount of the original bid, plus
- At least 10 percent of the first $10,000, plus
- At least 5 percent of the amount of the original bid in excess of $10,000
At the court confirmation, bidding proceeds much like an auction and the property gets sold to the highest bidder in court. However, bidders must be prepared with a cashier’s check in the right amount payable to the right party.
For additional information on this process, have a look at the How to Buy Probate Real Estate page or contact The Sanborn Team: 310-777-2858 or [email protected].
No excuses. Just great service.
