Selling an inherited home can be a daunting task, emotionally and financially. However, it can also be an opportunity to make a significant profit or relieve a financial burden. Here are some things you need to know before selling an inherited home.
Determine Legal Ownership
First, you need to determine who has legal ownership of the property which depends on the type of ownership the deceased had. If the deceased person had a will, the property will typically be transferred to the beneficiaries as specified in the will. However, if there is no will, the property will be distributed according to state laws.
To establish ownership, you may need to go through probate. Probate is the legal process that validates the will and ensures proper distribution of assets. If the property is still going through the probate process, it may need court approval before being sold. Consult an attorney to understand the probate requirements in your jurisdiction.
Ensure you have all the necessary legal documentation related to the inheritance, including the will, death certificate of the deceased, and any relevant probate court documents. These will establish your ownership and right to sell the property.
Taxes and Debt
It is important to check whether there are any liens or property taxes that still need to be paid off. These debts will have to be settled before you can sell the property, or at the very least, paid during the closing process. Additionally, it may be a good idea to consult with a tax expert regarding any potential tax implications that could arise from the sale of an inherited property, such as inheritance tax or capital gains tax.
Determine the Value of the Property
Get a professional to help you understand the current real estate market. This might mean talking with a trusted real estate agent or hiring an appraiser. Knowing the value of the property will help you set a realistic asking price and avoid overpricing or underpricing it.
Decide on a Selling Method
First, you need to decide if you are going to sell the property as-is or invest in repairs and renovations. Second, you’ll need to choose how to sell the property. You can list it on the open market with a real estate agent, sell it by owner (FSBO), or sell it to a real estate investor. If your property requires extensive repairs or updates, selling it to an investor may be worth exploring. This option offers the convenience of a quick sale and a cash offer, which may produce a more favorable result than spending weeks or months on estate sales, cleaning, and repairs just to get the home ready for market. Investors are willing to purchase the property as-is, without requiring any repairs or updates.
Finally, be prepared for the emotional impact of selling an inherited home. It may hold sentimental value and memories, so take time to process your feelings and make peace with the decision to sell. One helpful approach may be to involve family members in the decision-making process. This can provide support and help ensure that everyone is on the same page.
In conclusion, selling an inherited home requires careful consideration of various factors, including property value, tax implications, repairs, and emotional impact. Seek professional advice and support to ensure a smooth and successful selling process.
Remember that the specifics of selling an inherited home can vary based on local laws and individual circumstances. Consulting professionals and doing thorough research will help you navigate the process more effectively.
We have helped hundreds of families selling inherited properties. Our Senior Guidance Network is a team of trustworthy partners that you can count on to help navigate probate, legal issues, deed and tax concerns, or other unique circumstances.
If you are at a stage where you may want to sell your home let us help you! Give us a call today to see what solution we can provide for you! 817-442-2897