Are you a new investor in the real estate industry who is trying to find out what exactly skip tracing or probate properties refer to? No worries! You have landed on the right page. Perhaps you must have often heard about these terms in movies or TV programs. But, what you might not be aware of is that the skip tracing process or probate investing is also widely used in the real estate business. Keep reading and undoubtedly you will have a better understanding of the real estate business.
What is Skip Tracing Process in the n Real Estate Industry?
To begin with, let’s break the term into two parts. We all know that the term ‘skip’ refers to the person being searched. On the other hand, ‘tracing’ refers to the process of finding out the ‘skip’. In the real estate business, the process of finding out the information of a defaulted homeowner who is likely to be motivated sellers and cannot be otherwise located in common places such as their residence, office, or entertainment hubs is known as skip tracing.
Skip tracing in real estate is often practiced by a professional skip tracer having expertise in the field. The process is used by services such as marketing agencies, insurance fraud investigators, bounty hunters, real estate wholesalers, repossession agents, real estate investors, and many more. Usually, skip tracers look to find and confirm the defaulter’s current residential address, recent contact information, and background screening. In an attempt to locate a defaulted property owner, the real estate investors look for listings, great property deals, and investments.
Now that you have learned about skip tracing, let’s discuss what is referred to as probate real estate.
What is Probate Real Estate Process?
The legal process involved in the transfer of property ownership following a homeowner’s death is known as probate in real estate. In simple terms, it refers to the proceedings by which a decedent’s will is produced in a special court. It involves the following steps:
- Real Estate Executor: To begin with the real estate probate process, an executor must be appointed. Generally, the decedents’ will include the Executor’s name. However, if not, then an Administrator is appointed for the role. The decedents’ will state the property inheritance information.
- Appraisal of the Property: In the event of selling the property, the appointed Executor determines the listing price. An experienced probate real estate agent helps to fix the property’s list price after an appraisal.
- Listing of Probate Property: The property is listed in the real estate market once the listing price is determined. It follows the same marketing procedure as any other property to attract a high offer.
- Approval for Property Sale: On receiving an offer for the property, the real estate agent negotiates the terms for both parties. Also, they mail an official notice to all the heirs of the property with a 15 days timespan to come up with an objection to the property’s sale.
How Skip Tracing can be used in Probate Real Estate?
Skip tracing can be the most effective process of quickly finding heirs of probate properties. The main purpose of this process is to obtain the contact information of the probate heirs who are otherwise not easily located.
It is a simple process to be followed as the amount of required information is usually minimal. Skip tracers look for the following information in probate real estate:
- Probate heirs current residential address
- Contact information
- Email addresses
- Executor’s name, if any
- Social Security Number or other relevant details
In many cases, absentee or out-of-state probate heirs do not leave any information on their current address in the public records. This is when the skip tracing process plays a vital role.
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As a real estate investor, you can undoubtedly use the skip tracing method to reach more prospects. However, you may have to spend your money and time in some cases but the ultimate results will be worth it. You will find many real estate agencies providing skip tracing services. Make sure to choose a trusted and reliable one to successfully achieve your goal.