If you are looking to buy below-market houses in Chicago, one area to buy might be from inheritance lists and probate lists. But before you rush out and start marketing to those lists, make sure you know the 3 differences between inheritance lists and probate lists in Illinois…
When someone passes away, their estate passes to their heirs. While this can be a touching tribute and a way to keep wealth within a family, it can also be challenging for heirs because they may find themselves to be the owner of additional houses that they weren’t expecting and can’t afford to maintain.
That’s an opportunity for investors like you to help them.
In your marketing, you can market to inheritance lists and to probate lists.
3 differences between inheritance lists and probate lists in Illinois
Difference #1 Completed Versus In Progress
One rule of thumb is simple: inheritance is the passing down of an estate from a deceased to their heirs; probate is a stage in the inheritance process where the will is proved.
Therefore, an inheritance list is often a list of addresses of houses that have passed from a deceased person to their heirs while a probate list is likely a list of addresses of houses that are currently waiting for a will to be proved.
Difference #2 Ownership Issues
Another difference exists in the potential ownership of the house. In the case of a probate list, the estate of the deceased person may own the house, while their heirs wait for the will to be proved.
A house on an inheritance list, however, may have completed the transition and is owned by one or more heirs.
Difference #3 Message Required
A third difference is not in the list itself but in how you discuss the purchase of the property with the heirs. A house in probate is, potentially, the result of a recent death and the heirs might still be reeling from the loss and trying to come to grips with what they’ll do with the entire estate.
A house on an inheritance list is, potentially, owned by the heirs and the death of the previous owner might be sometime in the past. Use this information to help you discuss the property in a sensitive way.
Disclaimer: It Might Just Be A Name
One important point to be aware of: if you are renting a mailing list from a company, it’s possible that they are using the terms “inheritance list” and “probate list” interchangeably instead of in the way described above.
So make sure you read the fine print in the list rental to understand what properties are on that list.
Summary
If you are looking at getting a list to market for motivated sellers, make sure you know these 3 differences between inheritance lists and probate lists in Illinois before you buy.