When someone in your family passes away it can be one of the most trying moments of your life. Aside from the emotional stress, this loss can come with some heavy responsibilities in the form of an inherited house.
If you’ve inherited a house from a loved one, there are a lot of things to take into account. As the estate’s benefactor, you’re presented with two options regarding what you could do with the house— keep it or sell it.
What Preparations Should I Make Before Moving into the Inherited House?
Assessing Financial Considerations Before Moving In: Evaluating Home Equity and Mortgage Status
If the mortgage has not been paid off, it could result in forcing you to pay a higher payment than your budget allows. Before you decide, figure out what sort of payments you’ll have to pay on the home and whether or not you can afford it.
Can I Sell an Inherited House?
It is common for the property’s benefactors to decide on selling the home and splitting the profit amongst them. While it’s likely this is the easiest option, it doesn’t come without costs of its own.
Aside from any repairs, heating and electricity, insurance, and property taxes must be paid even if no one is living in the home. In order to ensure the house will sell, general upkeep including yard work must be sustained, and therefore cost you time and money.
Can I Manage the Mortgage Payments on the Inherited Property?
Important Factor to Keep in Mind: Assuming Responsibility for Existing Mortgages on the Inherited Property.
The home is the collateral for those loans, so it will go into foreclosure if you fail to make the payments. If you are not able to manage the mortgage, you will want to sell it as quickly as possible.
What Legal Obligations Should I Be Aware of as the Inheritor of the Property?
In these cases, selling it quickly or fixing the hazards is advisable to prevent someone from getting hurt, even if they were trespassing.
Was the Property Previously Used as a Rental?
Is someone currently living in the home as a renter, or did your loved one have a live-in arrangement with a friend or housekeeper?
Both ethically and legally, you need to understand the rights of anyone who shared the personal residence for whatever reason. You will not just be able to kick them to the curb because the original owner has passed away.
The rules will vary by state. California, in particular, is well-known for its substantial renter rights. It would help if you looked at the regulations in your area to reduce the risk of a lawsuit.
Existing Lease Agreements: Upholding Tenant Rights and Exploring the Possibility of Selling Inherited Homes with Tenants
It is also possible that if this renter has good credit and financial means, you may be able to agree on the purchase price of the home. This is usually not the case, though.
Are Major Repairs Needed (Roof, HVAC, etc.) on the Inherited Property?
Generally, you don’t have to go through the time-consuming task of getting estimates to know if you will have a significant repair bill on your hands.
Foundation repair
New roof or significant roof repair
New siding
HVAC
Water and Sewage problems
New septic system
Deck replacement
Driveway replacement
Smoke or water damage
Fallen trees that damaged the home
How to Quickly Sell an Inherited House
If after considering the questions above you feel like selling your inherited house is your best option, read on learn how this process works.
Step 1: Determine the Home Transfer Status
There are three ways someone usually transfers an inherited home.
Probate – Probate usually happens if your loved one doesn’t have a legal will. In these cases, a court considers the best interests of the deceased person. They look at the various people who could claim the home as well as personal belongings and try to sort it all out in the fairest way possible.
During this time, they also make sure that your loved one’s debtors are paid before you claim an inheritance. Probate laws are state-specific and can take as long as 24 months.
In some cases, the courts will order the sale of the home so that money can be split among relatives. Probate is the most expensive way to transfer property and usually results in descendants getting a fraction of the estate.
Step 2: Assess Tax Implications
Here are some that most descendants will need to consider. Our goal is only to give a general overview of tax during inheritance, if you have questions you should seek professional tax help.
Estate Tax Explained: Understanding the Tax on Property Transfer After Death
Capital Gains Tax: Navigating Tax Implications When Selling an Inherited Home.
For instance, if you decide to renovate an inherited property in poor condition and then sell it at its market value, you may end up selling it for more than its original basis (the value at the time of inheritance).
The Quickest Path to Selling an Inherited Home? Consider Selling to Creative Housing Duo
There is a solution to all these inconvenient costs, and you could still quickly sell the house you inherited. Creative Housing Duo will work with you to give you the highest possible cash offer for your property. Better yet, Creative Housing Duo will buy your inherited house as-is— no repairs necessary.
This alone will save valuable time and money. Creative Housing Duo will keep your busy schedule in mind and work hard to close the sale of your home in just 7 days. The sale is completed faster than a traditional real estate agent could deliver and Creative Housing Duo doesn’t even charge for any commissions.
See your offer in just 3 easy steps:
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