Buying a Probate House at a Court Overbid in Los Angeles: What Your Realtor Does and What Your Attorney Does
Bidding on a Los Angeles probate house at a court confirmation hearing? Here is what a probate-experienced realtor handles, what needs an attorney, and how to walk in ready to bid.
If you want to overbid on a probate house in Los Angeles, you need a realtor who has actually stood in a confirmation hearing, and you need an attorney only if you have a legal question about the estate, the title or your own contract. The realtor gets you the numbers, the paperwork and the plan. The judge runs the bidding. Your job is to walk in knowing your top number and never move off it.
I have been licensed since 1989 and a broker since 2005, and for years I sat in Los Angeles probate court nearly every day watching confirmation sales. Here is how the work splits up.
Can this probate sale even be overbid in court?
Only if the sale needs court confirmation. Most estates have full authority under the Independent Administration of Estates Act, and those sales usually close after a 15-day notice of proposed action (Probate Code §10586) with no hearing. On my show I've estimated that roughly 90% of estates I see have full authority and about 10% have limited authority, where the sale has to be confirmed by the judge and anyone can come in and overbid.
The MLS should say "court confirmation required," but agents often fill that field in wrong. A good realtor pulls the actual court case and tells you whether there will be a hearing at all.
How much do I have to bid to overbid?
Probate Code §10311 sets the first overbid: 10% more on the first $10,000 of the accepted bid and 5% more on the rest. In plain English that is the accepted price plus 5%, plus $500.
| Accepted bid | Minimum first overbid |
|---|---|
| $500,000 | $525,500 |
| $700,000 | $735,500 |
| $900,000 | $945,500 |
| $1,200,000 | $1,260,500 |
After the first overbid, the judge sets the increments. I've seen judges go up $1,000 at a time, $5,000 at a time, and the same judge do it two different ways on the same day.
What does my realtor handle before the hearing?
- Confirm the sale is going to court, the hearing date and the department.
- Get the accepted price and terms from the court filing so you know the starting number.
- Research the property in detail: condition, occupancy, comps. Many of these houses are beat up or have someone living in them.
- Line up your deposit. In Los Angeles practice you show up with a cashier's check, usually for 10% of your bid, made out to the estate. That means you need the estate's exact name and a trip to the bank before the hearing.
- Set your walk-away price with you, in writing, before you walk in.
- Make sure the probate forms are right. On Probate Weekly, real estate attorney Jennifer Felten explained why the CAR probate advisory and probate purchase addendum need to be checked and attached: they change the buyer's rights.
What does my realtor do at the hearing?
Shows up in person. You can usually appear by video, but I recommend my clients come in person because there are sometimes communication problems. We once won a property because the other agent and buyer weren't paying attention while the judge ran the bidding and didn't raise.
My job in the room is to keep you on your number, make sure your paperwork and check are in order, and handle the agents and counsel in the hallway.
When do I need an attorney?
Bring in your own attorney when the question is legal, not practical:
- You think there is a title problem, a lien or a dispute among heirs that could unwind the sale.
- You are bidding through an entity or with unusual financing terms.
- You need advice on your rights if the estate can't deliver what it promised.
The estate's attorney represents the estate, not you. Your realtor can't give you legal advice either.
What happens after I win?
You close. The rule of thumb is to be ready to close 10 days after the court order. In Los Angeles that often runs closer to 30 days, and longer when the estate's attorney is slow getting the order prepared and signed. I've had escrows take three or four months for that reason. Do not bid unless you intend to close. You are now in front of a judge who can hold you to it, which is a lot easier for the estate than filing a lawsuit.
Frequently asked questions
Can I use any realtor to overbid on a probate house?
You can, but most agents have never been in a confirmation hearing. Ask how many they've attended.
Do I need cash to overbid?
You need the deposit by cashier's check and your bid usually has to be free of contingencies. Talk to your lender before the hearing, not after.
Is the minimum overbid the same as 90% of the appraisal?
No. 90% of the appraised value is the floor the court needs for any private sale (Probate Code §10309). The overbid formula is a separate number built off the accepted bid.
Can I inspect the house first?
Ask early. Probate houses are sold as-is, and you usually waive contingencies to bid.
Watch the episodes this came from
- How Probate Court Confirmation Sales Work – Probate Weekly, Bill Gross, Aug 12, 2021
- 11 Ways To Buy Probate Real Estate – Probate Weekly, Bill Gross, Mar 14, 2024
- How to Sell Probate Real Estate Without Ending Up in Court – Jennifer Felten, RELAW, APC
Related: How does a court-confirmed probate sale work in Los Angeles? · What "court confirmation may be required" means on the MLS · Probate Realtor Los Angeles
Bidding on a Los Angeles probate house?
Send me the address. I'll pull the court case, tell you whether it's going to a hearing, and run the overbid numbers with you. Schedule a confidential consultation or call (310) 210-0008.
Please let me know if I can help in ANY way.
Bill Gross, The LA Probate Expert, brokered by eXp Realty · DRE #01022275 · Licensed since 1989, broker since 2005