What Is an Overbid at a Probate Confirmation Hearing?

An overbid is a higher offer submitted in open court at the confirmation hearing. In a court-confirmed probate sale, accepting an offer does not end the process. At the hearing, other buyers can show up and bid the price higher, auction style, and the court confirms the sale to the highest qualified bidder.

The minimum overbid formula

The first overbid must exceed the accepted price by at least 10 percent of the first 10,000 dollars plus 5 percent of the balance. On a 500,000 dollar accepted offer, the first overbid is about 525,000 dollars. The judge sets the increments for any further bids. In San Diego, an overbidder must appear with certified funds equal to at least 10 percent of their bid and proof they can complete the purchase.