Alex Daredia
Watson Realty | Broker-Associate | DRE #02035436
383+ homes sold across Kern & Tulare County. Former banking professional turned Broker-Associate, specializing in strategic pricing, investment analysis, and creative financing.
Probate real estate is one of the most specialized — and often misunderstood — areas of the California real estate market. Whether you are an executor settling a loved one's estate, a beneficiary navigating inherited property, or an investor seeking probate deals, understanding the process is essential to achieving a successful outcome.
In my probate real estate practice, I work closely with families, attorneys, and the courts to navigate what can be a complex and emotionally challenging process. This guide covers everything you need to know about buying and selling probate properties in California.
Probate is the legal process through which a deceased person's estate is administered and distributed. In California, probate is typically required when a person dies owning real property in their individual name (not in a trust) with a total estate value exceeding $184,500 (as of 2025).
If the property was held in a living trust, probate is usually avoided — the successor trustee can sell the property without court involvement. However, many California homeowners, particularly older residents in Kern and Tulare counties, do not have trusts, making probate necessary.
The probate process involves:
The IAEA, enacted in 1974, allows personal representatives to sell real property without court confirmation, provided:
An IAEA sale functions much like a regular real estate transaction. The personal representative lists the property, accepts an offer, opens escrow, and closes — all without a court hearing. This is faster, simpler, and generally preferred by all parties.
Timeline: An IAEA sale can close in 30 to 45 days from accepted offer, similar to a standard sale. The overall probate process from petition to close of sale typically takes 6 to 12 months.
When IAEA authority is not available (common with intestate estates or when beneficiaries object), the sale must be confirmed by the probate court. This process is significantly more complex:
Timeline: Court-confirmed sales typically take 60 to 90 days from accepted offer to close, and the overall probate timeline extends to 9 to 18 months.
Overbidding is unique to court-confirmed probate sales and creates both opportunity and uncertainty. Here is how it works in practice:
Suppose the accepted offer is $300,000. The minimum first overbid would be calculated as follows: the first $10,000 is raised by $500 (5 percent), plus the remaining $290,000 is raised by 5 percent ($14,500), for a total minimum first overbid of approximately $315,000. Subsequent overbids must exceed the previous bid by a set increment, typically $5,000 to $10,000.
For the original buyer, the overbid process can be frustrating — you may lose the property you thought you had secured. For investors, court confirmation hearings present opportunities to acquire properties that may have been under-marketed or undervalued.
In my experience, approximately 30 to 40 percent of court-confirmed sales receive at least one overbid. The percentage is higher for properties that appear underpriced or are in desirable locations.
Probate real estate is inherently emotional. The personal representative is often a family member grieving a loss while simultaneously managing complex legal and financial obligations. This is where sensitivity and expertise must work together.
When I work with executors and families, I approach the relationship with these principles:
For investors, probate sales can offer below-market acquisition prices for several reason
However, probate investing also carries unique risks: the sale can be overridden by the court, timelines are unpredictable, and property condition surprises are common with as-is sales. Due diligence is even more important than in standard transactions.
A successful probate real estate transaction requires close coordination between the real estate agent and the probate attorney. The attorney handles the legal process (filing petitions, court appearances, fulfilling notice requirements) while the agent handles the real estate process (pricing, marketing, negotiating, closing).
I maintain relationships with several experienced probate attorneys in Kern and Tulare counties and can provide referrals when families need legal representation. When the attorney and agent work as a team, the process is significantly smoother for the family.
One of the most beneficial aspects of inheriting real estate is the stepped-up cost basis. When you inherit a property, your cost basis for capital gains purposes is the fair market value at the date of death, not what the decedent originally paid. This can eliminate decades of accumulated capital gains.
For example, if your parent purchased a home in 1985 for $80,000 and it is worth $400,000 at the time of their death, your cost basis is $400,000. If you sell it for $410,000, you only owe capital gains taxes on the $10,000 gain — not the $330,000 gain from the original purchase price.
This stepped-up basis applies whether the property goes through probate or a trust. Consult with a tax professional for your specific situation, as I am not a tax advisor.
Whether you are an executor who needs to sell a probate property, a family member navigating an inheritance, or an investor interested in probate opportunities, my probate real estate services provide the specialized expertise this process requires. I work hand-in-hand with your attorney to ensure the property is properly valued, effectively marketed, and sold in compliance with all court requirements.
Every probate situation is unique, and I am happy to provide a confidential consultation to discuss your specific circumstances. The process may seem daunting, but with the right team guiding you, it is entirely manageable.
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