How do overbids work in a California probate sale?
By Sam Yusufi, Certified Probate & Trust SpecialistUpdated
When a probate sale needs court confirmation, the accepted offer isn't final until a court hearing. At that hearing, other buyers can bid more. The first overbid must be at least the accepted price, plus 10% of the first $10,000, plus 5% of the rest. On an $800,000 offer, that's $840,500.
When does a sale need court confirmation?
It depends on the authority in the Personal Representative's Letters. With limited authority, the sale goes to court. With full authority, a sale only goes to court if an heir objects to the Notice of Proposed Action.
For a court-confirmed sale, the price usually has to be at least 90% of the value set by the probate referee, a court-appointed appraiser.
How the minimum overbid is figured
| Accepted offer | $800,000 |
| Plus 10% of the first $10,000 | $1,000 |
| Plus 5% of the remaining $790,000 | $39,500 |
| Minimum first overbid | $840,500 |
What happens at the hearing
Any qualified buyer can make a higher offer at the hearing. The highest bid wins, and the court confirms the sale.
What this means for your family
A court-confirmed sale adds a hearing date and a bidding step to the timeline. Hearing dates depend on the county court's calendar, so it helps to plan for it from the start.