hearing date has been set, the house will continue to be marketed. This is because during the court confirmation hearing, the previously accepted bid may be “overbid.” The overbidding party must appear at the hearing with a cashier’s check for at least 10% of the minimum overbid price to successfully overbid. The minimum overbid is determined by the following formula: 10% of the first $10,000 plus 5% of the balance of the accepted offer.
EXAMPLE: A property is listed at $200,000. The accepted offer is $175,000.
The minimum overbid is calculated as follows:
Accepted offer = $175,000
+.10 x $10,000 = $1,000
+ .05 x $165,000 = $8,250
Minimum overbid = $184,250
x .10 = $18,425 required amount of cashier’s check
If there is more than one over-bidder, the highest bid takes the property. Giving a cashier’s check to the Executor/Administrator opens escrow, which will close approximately 30 to 45 days from the court hearing.
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