Real Estate: When and Why a Fiduciary may Choose to Take a Risk When Selling Properties:
By Shirley Bell

I am working on a real estate transaction right now that is typical of lower range priced properties.  Buyers in the range most often do not have the 10% down payment required in the Probate process.  Holding out for a Buyer with a cash reserve often means taking a lower offer.  A Fiduciary has a responsibility to get the very most for the client.  Is this instance, a Fiduciary cannot do so without taking a risk.  In today’s market, in San Diego, there is a way to minimize this risk.
During the negotiation process, include a short time period for the removal of all contingencies, including appraisal and full loan approval, and all loan requirements.  This means the Buyer must pay for an appraisal up front and he stands to lose this money if there is a successful overbid.
There are so many more Buyers for each property right now, that we have an additional “problem” of Buyers willing to offer more for the property then its value, just to get an accepted offer.  When this happens in the lower price range, the Buyer most often cannot make up the difference between what the bank will loan and the agreed on price.  By having the Buyer pay for and have the appraisal up front, this potential problem is addressed and resolved.
To ask court Approval before this detail is worked out would be foolish, but by having the appraisal report in advance of Court Approval and all contingencies removed, the Fiduciary should be free of any jeopardy.  The possibility for an overbid is minimized if the property value is already at a maximum.  Therefore, the Buyer’s risk is low, the Fiduciary’s risk is low and the client wins.
I just haven’t worked out why the Judge holds this process in low regard, and the agent is holding his breath the whole way, along with the attorney and Fiduciary.  Make sure your agent is experienced in the Probate process and loans.  You really need to have this entire process well supervised.