30 Percent Overbid in Court

Good News: Overbid Activity Raises Sale Price

We are very excited to report that we had some heated overbidding for real estate in court today. As a result of our marketing plan for all of our probate real estate properties we were able to secure for the estate that we represented an additional $37,000, which represented a 30% increase for the heirs of the estate.

This property was listed for sale in November 2008 for $150,000 and there were not any showings or calls. The estate reduced the price of the property to just below $100,000 and there was an increase in activity and finally a bid for $90,000 was accepted.

Once we received the court date information, we updated the multiple listing service with the overbid price. In the last 30 days we received numerous inquiries from real estate agents and from potential buyers for this property. We sent out instructions for how overbid in court and today we actually had 2 interested parties who wanted to bid on the property (there were actually 3 interested parties, but one of the overbidders arrived late :-( in spite of our clear instructions that the probate court in downtown Los Angeles starts promptly at 8:30 a.m).
The over bidding for the property was quite active and interesting and in the end the judge had the bids go up in increments of $1,000. At the end of the day the buyer for the property bid $127,000.

Everyone who represented the estate was excited to get an additional $37,000 for the property and they thanked Nancy Sanborn and Allison Sanborn of The Sanborn Team for all their efforts in getting the property sold and for dynamic marketing to attract an overbid in Probate Court.

Probate and Trust Real Estate Update

Two Probate Court Real Estate Sales in One Day

Who can explain the real estate market? One never knows what to expect when you go to probate court.

Today we had two properties sell. The first was a small house just south of Downtown Los Angeles that had an accepted offer for $115,000. We had numerous calls on the property and many people asking us to fax instructions for how to overbid in court. As recently as last night I had a request for information on how the check for the overbid was to be filled out. You can imagine our surprise this morning when the attorney for the estate called out in court asking if anyone was there to overbid and no one responded.

On the other hand, we had a second sale today on a property that has been on the market for over 8 months. Due to several technical problems, the sale was delayed numerous times. The original buyers for the property had appeared in court several times, only to have their efforts to buy the home delayed due to problems for the estate. During the last several weeks prior to this hearing there was a sudden burst of activity, with showings several times a week. One couple decided to do both a physical inspection and a termite inspection. Today the couple appeared in court and there was very active bidding on the property.

The initial over bid was $998,000 and the property ultimately sold for $1,141,000. The difference between the accepted offer and the final sales price was was cl0se t0 $200,000. Needless to say everyone involved was pleasantly surprised with the result. Once again we felt that our marketing efforts paid off.

If you need professional advice on court ordered real estate sales in California call The Sanborn Team at 310-777-2858 and we can assist you with all your probate and trust real estate needs.
For additional information about The Sanborn Team please visit our web site at http://www.sanbornteam.com/

Upcoming Court Date!

Upcoming Court Date

February 26, 2008

14451 Sayre Street ~ Sylmar, California

3+1 Single Family house on a large corner lot.

Perfect for an investor or someone looking to Save and Fix!

Opening Bid: $315,500

Court location: Van Nuys Court House

6230 Sylmar Ave., Van Nuys - Department: A

For further information

please visit our website or call the office at 310.777.2858

http://www.sanbornteam.com/

Over-Bidding in Court: Why It's Important to Read the Instructions

Although we discussed this in the last week, we would like to share with you a new tale from the court...

Today we had a hearing to confirm the sale of real property located on Riverside Drive in Sherman Oaks, California. Before the hearing, we always qualify any over-bidders to make sure that they have followed the exact instructions. In order for a potential buyer to purchase a property in court, the buyer must provide:

• A cashier's check for at least 10% of the opening bid amount made payable to the Estate.

We cannot accept anything less... we cannot accept a personal check... we don't like to take cash... and, very importantly, we cannot accept credit cards.

So today we had two potential buyers in addition to the original buyer who put in the accepted bid. One of the buyers presented to the attorney and the seller a check for $76,175 (exactly 10% of the opening bid amount) made payable to the estate. The second buyer presented a cashier's check for only 3% of the opening bid - $22,853.

Whenever we get inquiries about court hearing, we fax or e-mail instructions on exactly the terms of the sale and how to over-bid in court. It states clearly that in order to bid in court you must have a cashier's check for 10% of the opening bid price made payable to the Estate. We provide the opening bid amount and the name of the Estate, Trust or Conservatorship to which the check is to be payable.

As we are re-explaining the process to the buyer with the 3% check, we notice that behind the check he is holding the instructions on how to bid we had sent to him and his agent for this property. His agent was standing there holding the same piece of paper. Obviously they had not read the instructions.

Unfortunately we had to turn down this buyer. However we did sell the property to an over-bidder for much more than we expected.

When you work with The Sanborn Team, we make sure that all potential buyers, whether at the intial stages of the sale or as an over-bidder in court, have all the information on how to write an offer or over-bid in court as well as the terms of the sale.

We know that selling real estate can be time consuming and overwhelming. What we do is SAVE you lots of time when it comes to your real estate needs. Please visit our website at http://www.sanbornteam.com/ or call us 310-777-2858 directly to find out how we handle Probate & Trust Real Estate Sales and how we are different from most agents.

Over-bidding in Court: What NOT to do

In order to bid in court, a buyer must present a cashier's check for at least 10% of the opening bid amount and it is to be made payable to the Estate, Conservatorship or Trust. If a buyer does not have this, they cannot attempt to purchase the property. So if you set your dreams on having that particular property you better come to court and be prepared.

The other day we were having a sale in court and up walks this lovely young couple, Fred and Cindy. Both dressed in their best “Sunday” clothes and holding hands, they came up to us and said they were here to bid on the house. They started to tell us how excited they were since they had been looking for a house for over a year. They had gotten priced out of the market so they really could only afford houses that need some updating and work. The house they came to purchase was a cute as a button little Spanish casita in need of everything. Their kind eyes told us how they started drawing up plans and Cindy was particularly in love with the sun-filled yard.

When the attorney arrived and asked to verify their funds, Fred pulled out a personal check from his back pocket. The check was written payable to the Estate, however it was only for 5% of the opening bid. The attorney had to tell the couple that they could not buy this property because A) the check needed to be for 10% of the opening bid and B) the check needed to be a cashier's check.

At that same moment, an investor all in black with sunglasses on top of his head presents a check for exactly 10% of the opening bid, made payable to the Estate, and in the form of a cashier's check.

Fred and Cindy were devastated. As we walked through the double doors into the court room, we looked over our shoulder and saw them walk slowly away.

So be prepared. Don’t let a silly mistake take away the home of your dreams or a great opportunity.

To find out more how the over-bid process works in Court, please contact The Sanborn Team at 310-777-2858 or visit us on the web at http://www.sanbornteam.com/

How is the over bid amount established?

When a property is sold at a court hearing there is open competitive bidding.
It is important to understand that in order for there to be a court hearing an initial bid has to be accepted and the attorney for the estate must petition to have a hearing date.
The minimum first overbid price is set by a statute in the Probate Code. That amount is 5% of the accepted initial bid plus $500.
Further incremental bidding is established by the presiding judicial officer at the hearing.

The Sanborn Team is here to take the mystery out of court confirmed sales.
Call us for any of your Real Estate needs.
310-777-2858

What is the minimum required as an overbidder in Court?

Q. What is the opening bid? How is that deteremined?

A. The opening bid in court must exceed the initial bid on the property and it follows this formula:

• The amoung of the original bid, plus
• At least 10 percent of the first $10,000 of the original bid; plus
• At least 5 percent of the amount of the original bid in excess of $10,000

OR

• It's 5% plus $500 of the original bid (this way is MUCH easier to remember)

The minimum overbid after the initial overbid will be set by the court at the time of the confirmation hearing. This is very simliar to an auction and the property gets sold to the highest bidder in court.