Probate leads are worth exploring if you want to expand your portfolio and score properties at excellent rates. But how do you actually find these leads? From digging into public records and attending auctions to relying on paid services—there are plenty of ways to get started. I’ll explore exactly what a probate lead is, the pros and cons of probate leads and properties, and how to find and purchase them.

What is a Probate Lead?

Toy house, gavel and text PROBATE LAW.

Before finding and buying probate leads, it’s essential to understand what they are. In most cases, probate leads refer to real estate properties that become available for sale as part of the legal process following an individual’s passing. When a person dies, their assets, including real estate, go through a legal procedure to settle debts and distribute assets to beneficiaries. They also can arise from divorce proceedings.

In many cases, there may not have been a will or designated heirs, or the heirs might choose not to retain or maintain the property. Consequently, the courts or executors often aim to sell these properties quickly and at prices well below market value. It’s important to note that probate properties are typically sold “as is,” with potential defects unknown by the executors because they never lived there. Buyers interested in probate properties must be prepared to assume the associated risks and navigate the complex probate procedures.

Ways to Find Probate Real Estate Leads

Finding probate real estate leads can be challenging if you don’t know where to look. The challenges associated with probate properties make the probate market unsaturated, with an ever-growing inventory untapped by new investors. If you’re up for the challenge and willing to deal with the probate process, you can obtain many opportunities to find probate property listing leads. Here are a few ways on how to find probate properties: 

1. Probate Properties Through Public Records

While it requires more time and effort, one effective way to find probate leads is to get the probate property list from the courthouse. All probate cases are filed with the county courthouse, which makes these records publicly available. If your local area does not have an online resource for the probate properties list, you may need to visit the courthouse to access the physical files.

Example of a probate petition document
Probate petition example (Source: Teahan & Constantino LLP)

Once you access active probate files, read through the assets to see if any real estate is listed. If you find an opportunity within the files, contact the executor or administrator of the estate to inquire about the real estate. Another public way to get a probate list of real estate is through the newspaper (old school, but effective!). Because estate executors are motivated to sell the available assets, they’ll sometimes list the property for sale in the local newspapers and through social media. 

2. Purchase Probate Leads

Real estate investors can also buy probate leads. This option is more costly, with monthly subscription fees and limited access depending on your preferred state and county. However, these online lead providers digitize and simplify access to information about probate leads for real estate professionals. Leads are typically segregated by state and county since probate cases are filed in the county where the person lives.

CatalyzeAI dashboard
Check out all recommended probate leads on your CatalyzeAI dashboard. (Source: CatalyzeAI)

If you’re looking for an overall probate lead seller that provides exclusive leads, CatalyzeAI is an excellent choice. It offers real-time results based on historical, event-driven, and behavioral data to predict property sales before they enter the probate process. Its flexible pricing, exclusive lead offerings, and a focus on properties within a 50-mile radius ensure you’re targeting the most relevant leads without overspending.

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3. Obtain Referral Probate Leads

Acquiring referral leads is one of the best real estate lead generation sources. They can be free since friends, families, and colleagues provide them. Ask your social circles or close family and friends for probate real estate leads. By telling your sphere of influence (SOI) that you are interested in probate opportunities, they’ll know to refer such information to you. 

Tap into probate attorney leads through referral relationships with probate and estate attorneys. This would provide access to probate leads before they become public, as these attorneys work alongside the executors and beneficiaries to settle an estate. Their expertise includes recording an estate’s assets, helping pay the liabilities owed, and distributing the assets. Therefore, they would know if real estate is associated with an estate and its current plans.

4. Market Yourself as a Probate Investor

If purchasing probate properties is the majority of your investment business model, you should market yourself as probate investors to generate leads in your area. To generate leads, investors can create marketing materials that drive business from surviving spouses, probate attorneys, real estate agents, etc. 

Begin with a simple website legitimizing your business. Next, create landing pages with specific language and calls to action to encourage visitors to submit leads. Disperse other marketing materials within a neighborhood, such as flyers and postcards discussing your specialty and familiarity with probate properties.

Placester lead capture form feature on a laptop screen
Custom landing pages and lead capture forms (Source: Placester)

Enlist Placester’s help to develop your website and landing page designs. It offers customizable websites that can be launched instantly with tools to help generate and capture incoming leads. You can create the website yourself, or its designers can create one for you.

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5. Partner With a Certified Probate Real Estate Specialist

Much like partnering with probate attorneys who work with executors, partnering with a certified probate real estate specialist (CPRES) is a great way to obtain probate real estate leads. The CPRES will work with the families involved, helping them navigate the probate process. They are trained to understand the nuances of the probate court system, assisting families in understanding the legal steps and upcoming deadlines. 

A CPRES also supports families in marketing and selling the real estate involved in the probate process; therefore, they can help find buyers for the properties. Partnering with a CPRES can be beneficial in how to get probate listings that have motivated sellers. There are a few ways to find CPRES. Search LinkedIn for someone with CPRES in their title, or US Probate Services has a directory of probate vendors like attorneys and real estate agents listed on their site.

6. Purchase Probate Property at Auctions

Back view of buyers showing auction paddles

If the beneficiaries cannot agree to sale terms, the property may be auctioned for a quick sale or by a judge’s order. You can find auctions through your county website, newspapers, or even some real estate agents who may have insight. 

Real estate investors should beware that property in an auction may have multiple bids that bring property prices up to market value. Additionally, at auction, a prospective buyer must put a cash deposit payment on the spot, which can be up to 10%. This is generally paid through a cashier’s check during the auction. Investors also must be cautious about the property’s condition and do their due diligence.

How to Buy Probate Properties

Example of a Petition for Approval of Sale of Real Estate form
Petition for Approval of Sale of Real Estate example (Source: State of Michigan)

Finding out how to get probate leads is the initial challenge to the probate process, but after obtaining the leads and coming to an agreement, you go through the purchasing process. Because of court involvement, the length of a probate sale process can take six to 12 months. Compare this with traditional real estate transactions, which usually take two months to complete, with motivated buyers and sellers.

Each state has its own probate process, which can vary widely. Many states have adopted the Uniform Probate Code, streamlining the process and minimizing costs. Additionally, each state has defined probate thresholds. For example, if the full estate value is $184,500 or less, you can avoid probate entirely in California. However, the estate value in Michigan must be $15,000 or less, with no real estate included.

If you purchase property in probate, the standard process is as follows: 

  • Make an offer: Once you find a property, make a written offer. Be ready with a 10% deposit, which may not be refundable. The estate representative or listing agent will respond, and if they accept, they’ll file a Petition for Sale Approval.
  • Attend the court hearing: After accepting your offer, a court hearing is scheduled to finalize the sale. During this hearing, other buyers might try to outbid you. If that happens, the judge will raise the property’s price. To secure the purchase, you need to outbid the others, if there are any.
  • Submit paperwork and secure financing: You’ll complete the final paperwork if you become the top bidder at the court hearing. Probate properties are sometimes distressed and may not qualify for traditional financing like a mortgage. Typically, probate purchase agreements don’t include a loan contingency, so you must secure a loan in time to avoid losing your deposit. Alternatively, the seller might prefer an all-cash offer.
  • Finalize the purchase: After that, the probate judge or estate representative will give you a sales contract to sign. Once it’s signed, no more bids are considered, and the court will continue with the probate process, which can take up to 12 months to finish.

Pros & Cons of Buying Probate Leads

Purchasing probate properties at a significant discount is attractive to real estate investors, but it comes with risks. While this niche market has many benefits, every investor should be aware of the downsides.

Pros
Cons
  • Save money since the sale price must be 90% of the appraised value, saving buyers at least 10%.
  • The probate process can be long and highly complicated. Some probate cases can take up to three years to resolve.
  • Eliminate other investors unfamiliar with the process; therefore, there may be less competition.
  • You risk losing the deposit if you fail to complete the purchase process.
  • Since you have to purchase the property “as-is,” you may uncover hidden issues or defects.
  • Owners of probate properties are often highly motivated sellers eager to sell their properties quickly.
  • The upgrade and repair costs you’ll potentially have to pay for the probate property may eat up your profits.

Frequently Asked Questions (FAQs)

Bringing It All Together

Finding probate leads for realtors or properties can help you invest in real estate at a highly discounted rate if you’re willing to go through the process. Because the process can be complex, there is a high barrier to entering this market, which weeds out newer and inexperienced investors. However, it can be a lucrative real estate investing niche once you learn the process. 

Have you ever invested in probate real estate? How do you find probate properties? Share your experience in the comments!