No matter how old you are, losing a loved one is a heartbreaking experience. But, there are several affairs you still need to take care of, such as an inherited house.
There are quite a few options on what you can do with the house. You can move in, rent out or sell the house. If you decide to sell your inherited house, there are a few elements that you need to understand beforehand.
Here are a few things to remember when selling an inherited property. The information below is based on common situations we’ve seen regarding inherited property and selling it.
Understand All the Variables
How Many Involved Parties?
The inherited house involves inheritance paper works.
If you are the sole beneficiary of an inherited property, then the deceased’s entire estate belongs to you. However, what happens if there are more heirs to the estate?
In most cases, if there is a will or a trust with information about the heirs, these will clearly show who the stipulated executor (decision maker) is.
When there is no will or trust, the probate court will appoint one of the heirs considered best fit to be the executor. When there is no appointed single decision-maker, everyone will have equal say. In our experience dealing with transactions of an inherited house, they tend to work best when there is one designated executor that works alongside the rest of the family.
All beneficiaries must be on the same page regarding what should be done with the inherited property. If not, you might have years of legal battles and family arguments that can have lasting negative effects. The best-case scenario is often when all parties agree to sell the home and split the revenue fairly.
How Much is the Home Worth?
By understanding the value of the estate, you have inherited, you can know the appropriate next steps to take. You will probably need to conduct market research and compare your home to similar properties in the area. Several factors will determine the worth of your home.
The local housing market where the property is located will significantly influence the value. The house’s condition will also weigh in on how much your property is worth. Home value estimation tools can give you an initial idea of your property’s worth. However, remember that the amount you see as estimates will not necessarily translate to the amount you sell the property for.
Oftentimes the homes may be in very poor condition, and the families or executors do not wish to go through the lengthy traditional sell process and pay the additional costs of doing so. That is where our team has been able to help many families like yours. We can help assess the value of your property in its current state and make a cash offer while ensuring that your timelines and needs are met. This will eliminate the stress and worry on your end while helping the process along in a timely fashion.
Are There Any Obligations Related to the Property?
Before you sell the house, you must first find out about any legal or financial obligations tied to the property. You will need to find out if there are existing mortgages, outstanding debts, outstanding bills, piled-up taxes, or liens against the property or if there are other co-owners.
If you have no idea how to find this information, that is also where working alongside a team like ourselves can be beneficial. We can assist in finding these liens, judgements, and back taxes and even help pay them off in certain situations. Our team will perform a full title search so that we can identify and address such issues. If the property has a clear title, you can confidently move forward with selling your inherited property.
It is usually the executor’s responsibility to notify the deceased’s creditors of the death and take up the responsibility for any debts, which is why we work with you to handle these situations or guide you through them. The worst thing is realizing that you owe much more than what the property is worth.
Get Down to the Actual Sale
When it comes down to selling the property, we understand that it might be difficult to deal with all the hassles, especially after losing a loved one. Many of the owners we have worked with are to a point where they just don’t want to deal with it after all that has happened. Some homeowners choose the FSBO (For Sale by Owner) route, which only adds to the amount of work and legal matters you will be responsible for.
If you decide to sell the house on your own, you will need to handle several things beforehand. You will need to do more than declutter the house and arrange for repairs. You will need to price the home properly by conducting a comparative market analysis, conducting property marketing, coordinating showings to ensure you comply with all legalities, and handling any negotiations with buyers. The process also involves filling out paperwork and disclosures and navigating the escrow and closure of sales.
The quickest and easiest way to sell your house is to a proven local company like ourselves which can offer competitive cash offers and peace of mind for you during trying times. You can skip the hassles of listing with a realtor and get fair market value quickly for your property. This means you can skip the showings, the repairs, and all the hassles that come with selling an inherited property. The best part of selling with us is that the entire process can take as little as two weeks.
Declare Sales Proceeds and Make Necessary Tax Considerations
When you receive an inheritance, you might be subject to depending on the state where the property is located. It might be wise to consult a tax expert before starting the process of selling your inherited house. This will ensure that you are aware of any tax implications of the inherited property.
The IRS also requires that any proceeds from selling an inherited house are reported as taxable income. The taxable amount is calculated based on the home’s fair market value and other home improvements. The IRS Gifts & Inheritance describes in detail the obligations and provides instructions on which forms to use.
The Bottom Line When Selling an Inherited Property
It is not easy to sell a home. Let us take care of the stress for you. It can often be overwhelming, even for the most level-headed individuals. The sentimental value held by the property can also make the entire process more difficult.
You can reach out to our team should you find yourself in this position. We ensure the process is timely and straightforward and that your needs are met throughout the process. We are a local partner here to work with you, especially during the trying times of selling an inherited property.
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