How Do Probate Court Confirmation and Overbids Work?

By Bart Hubbard, Realtor, DRE #01815497 | Published August 13, 2026 | Updated October 1, 2026

In a California court-confirmed probate sale, the executor accepts an offer, and a judge approves it at a public hearing. The price must be at least 90% of an appraisal made within the past year. At the hearing, anyone can overbid, and the first overbid must be at least 10% more on the first $10,000 of the original offer plus 5% more on the rest.

The court then confirms the sale to the highest qualifying bidder.

Court confirmation exists to protect heirs and creditors. It puts the price in front of a judge and gives the open market one last chance to pay more.

The thing most sellers and buyers get wrong is treating the accepted offer as a done deal. Until the judge confirms the sale, the original buyer can be outbid, and title cannot pass.

Key Facts

• A California probate sale without full IAEA authority must be confirmed by the court before title passes (Prob. Code 10308).
• A California court-confirmed private sale must be at least 90% of an appraisal made within one year before the hearing (Prob. Code 10309).
• A California probate overbid must be at least 10% more on the first $10,000 and 5% more on the rest of the original bid (Prob. Code 10311).
• For a $500,000 original bid in a California probate sale, the minimum overbid is $525,500.
• A California probate estate owes a broker commission only if the sale is confirmed and closes (Prob. Code 10160).
• When only the overbidder has a broker, that broker’s commission is capped at half the difference between the original and winning bids (Prob. Code 10162).
• Sacramento County probate hearings are in Dept. 126 or Dept. 129 at the William R. Ridgeway Family Relations Courthouse, 3341 Power Inn Road (Sacramento Superior Court).

When Does a Probate Sale Need Court Confirmation?

A sale needs court confirmation when the personal representative lacks full IAEA authority. The personal representative is the executor or administrator the court appoints. IAEA is the Independent Administration of Estates Act, which lets the court grant authority to act without a hearing for each step.

A sale also goes to court when an heir objects to a Notice of Proposed Action, or when the representative chooses court supervision. The differences are explained in full IAEA authority vs. court confirmation.

What Happens Between the Accepted Offer and the Hearing?

The estate’s attorney files a petition to confirm the sale, and the court sets a hearing. Unless an exception applies, a notice of sale is published under Government Code 6063a (Prob. Code 10300).

The wait from accepted offer to hearing varies with the court’s calendar, so ask the estate’s attorney for current timing. Before the hearing, Sacramento court examiners post probate notes, which list any problems with the petition, through the court’s probate case and calendar search.

What Is the 90% Rule?

A court cannot confirm a private sale for less than 90% of the appraised value. The appraisal must have been made within one year before the confirmation hearing (Prob. Code 10309).

The appraisal usually comes from the probate referee. A probate referee is an appraiser appointed by the State Controller to value estate assets such as real estate (State Controller).

Sacramento County lists five referees, assigned by the last digit of the case number (referee assignments). Learn more in how a house is appraised in probate.

How Is the Minimum Overbid Calculated?

The first overbid must be at least the original bid, plus 10% of the first $10,000, plus 5% of everything above $10,000 (Prob. Code 10311). An overbid is a higher offer made in the courtroom at the confirmation hearing.

For a $500,000 original bid, the math is $500,000 + $1,000 + $24,500 = $525,500. In practice, the first overbid is a little over 5% above the accepted offer. The Probate Code does not set the size of later bids, so the judge runs the bidding from there. Any commission owed to a broker is left out when the court compares the bids (Prob. Code 10311(e)).

What Happens in the Courtroom on Hearing Day?

The judge calls the case, reviews the petition and asks whether anyone wants to overbid. If no one does, the judge usually confirms the sale to the original buyer. If someone does, bidding continues in open court until one bidder remains.

The court confirms the sale to the highest qualifying offer (Prob. Code 10313). In Sacramento, cases ending in 1, 3, 5, 7 or 9 go to Dept. 126, and cases ending in 0, 2, 4, 6 or 8 go to Dept. 129 (department assignments). Probate court rules for Sacramento are in Chapter 4 of the local rules, effective July 1, 2026 (local rules).

What Do Overbidders Need to Bring?

Overbidders should come ready to prove they can close. Under Probate Code 10311, the overbid must be a written offer made to the court at the hearing by a “responsible person.” The code does not set a deposit, so ask the estate’s attorney what the judge expects, such as a cashier’s check or proof of funds.

Terms matter too. If the original sale or the overbid is on credit, meaning the estate itself would finance part of the price, the court can consider the overbid only if the personal representative tells the court it is acceptable (Prob. Code 10311(d)). A buyer’s agent who has attended hearings in that department can explain the courtroom’s routine.

How Are Broker Commissions Handled When There Is an Overbid?

The estate owes a commission only if a sale is made, the court confirms it and the sale closes (Prob. Code 10160). The court sets a reasonable commission. A broker without an exclusive listing is paid only for producing the original bid or the winning overbid (Prob. Code 10161).

If the original buyer had no broker and the winning overbidder does, that broker’s commission is capped at half the difference between the original and winning bids. The cap does not limit a broker who holds the estate’s exclusive listing (Prob. Code 10162).

What Does Court Confirmation Mean for the Original Buyer?

The original buyer has a signed contract but no guarantee. Title cannot pass until the court confirms the sale (Prob. Code 10308), and a higher bidder can take the house at the hearing.

The original buyer can attend and bid again. Some buyers value the fact that a judge has reviewed the price. For the other side of the choice, see cash buyer vs. listing for a probate house.

What Does This Look Like With Real Numbers?

Illustrative example, not a real client.

The probate referee appraises an estate’s house at $540,000. The executor accepts a $500,000 offer from a buyer with no broker. The estate’s listing broker holds an exclusive listing.

Step 1: Check the 90% floor.

• 0.90 x $540,000 = $486,000
• $500,000 is above $486,000, so the offer can be confirmed.

Step 2: Figure the minimum overbid.

• 10% of the first $10,000: $1,000
• 5% of the remaining $490,000: $24,500
• Minimum overbid: $500,000 + $1,000 + $24,500 = $525,500

Step 3: The hearing. A second buyer, represented by a broker, opens at $525,500. After more bidding, the second buyer wins at $530,000, and the court confirms the sale.

Step 4: The overbid broker’s cap.

• Difference: $530,000 – $500,000 = $30,000
• Cap on the overbidder’s broker: $30,000 / 2 = $15,000
• The cap does not apply to the listing broker, whose commission the court sets.

The estate sells for $30,000 more than the accepted offer.

Change one fact: the accepted offer is $480,000.

• $480,000 is below the $486,000 floor.
• The court cannot confirm the sale, and no overbid round happens.
• The executor must find a higher offer, or obtain a new appraisal if the current one will be more than a year old at the hearing.

What Mistakes Should You Avoid?

• Accepting an offer below 90% of the appraisal. The court cannot confirm it, and weeks are lost.
• Letting the appraisal go stale. An appraisal more than one year old at the hearing fails the 90% test.
• Telling the original buyer the deal is final. A buyer who is surprised by the overbid process may lose trust and back out before the hearing.
• Showing up to overbid without funds ready. An unprepared bidder may not be allowed to bid.
• Ignoring the probate notes. An unresolved examiner note can push the hearing to a later date.

Summary

• Without full IAEA authority, a probate house sale must be confirmed by the court before title passes (Prob. Code 10308).
• A notice of sale is published before most court-confirmed sales (Prob. Code 10300).
• The price must be at least 90% of an appraisal made within one year before the hearing (Prob. Code 10309).
• The first overbid must be at least 10% more on the first $10,000 plus 5% more on the rest (Prob. Code 10311).
• A $500,000 original bid needs a minimum overbid of $525,500.
• The court confirms to the highest qualifying offer (Prob. Code 10313).
• A commission is owed only if the sale is confirmed and closes (Prob. Code 10160), and an overbidder’s broker may be capped at half the price increase (Prob. Code 10162).
• Sacramento hearings are in Dept. 126 or 129 at 3341 Power Inn Road.

Run your numbers: Use the Net Proceeds Calculator to see what the estate keeps at the accepted price and at a possible overbid price, after commissions and costs.

Next Steps

Talk with Bart: Book a free 15-minute call. I’ll listen to where you are in the process, look at the property, and tell you your options, including the ones that don’t involve hiring me.

Get a free probate home valuation: You’ll get a written price range within 24 hours, so you can see how the market compares with the referee’s appraisal.

This article is general information, not legal or tax advice. Probate and tax rules depend on your facts. Talk with a California probate attorney or CPA before acting. Figures current as of October 1, 2026.

About the Author

Bart Hubbard is a Realtor with HomeSmart ICARE Realty (DRE #01815497) and a C.A.R. Certified Probate and Trust Specialist who helps families across the greater Sacramento area sell inherited, probate and trust homes. He works alongside probate attorneys, fiduciaries and local vendors to handle pricing, cleanouts, repairs and court-confirmation sales, so executors can focus on their families. More about Bart is on his bio page.

Related Articles

• Full IAEA authority vs. court confirmation: what’s the difference?
• How is a house appraised in probate in Sacramento County?
• Can you sell a house while it’s in probate in Sacramento?
• Cash buyer or listing: which is better for a probate house?
• How a probate sale works in Sacramento