Inheriting a house can bring about a wide range of emotions. It can be a difficult time and you should be thoughtful as you decide how to handle the property. You may find the idea of a sale difficult if you have sentimental attachments to the house. If you do decide to sell, here are a few tips to ensure a smooth transaction.
Prepare The House For A Sale
Do Your Homework
Get to know the property before listing or selling it. You may not know all the ins and outs of the home. Review every record of renovations and repairs and learn about any items under warranty.
Have The House Appraised
To know what you’re dealing with, have the house appraised. Research recent sales in the neighborhood to price your home to sell.
Insurance
You will need to have insurance for your house, even if it’s vacant. Talk to your broker about a policy for vacant homes.
Clean
Cleaning may be difficult for you. After you have removed personal items from the home, consider hiring a team of professionals to do the cleaning.
Yard Sale
Oftentimes, people hold estate sales to get rid of all of the items left behind in the home. This is also a great opportunity to let people know the house is for sale. Carefully sift through what is left behind, selling the items that nobody wishes to keep. Don’t be hasty and sell things of sentimental value. You will likely regret it down the road.
What If There Are Multiple Heirs?
When there are multiple heirs to an estate, one person will be named the executor of the will, and be in charge of the financial transactions regarding the property. All parties will need to sign off on the sale before it is final. Heirs can choose to buy each other out before the house is sold. If the heirs cannot come to an agreement, on what to do with the house, the court will likely order the house auctioned off or sold.
Consider Selling The Property Directly
When you inherit a house, and you decide to sell it, it’s not likely you will want to sink a bunch of money into the home. By selling direct, you will be able to liquidate the house, without having to pay upfront. Listing the house comes with many costs. With a direct sale, you can avoid repair, marketing, and listing costs. Plus, you won’t have to pay an agent their commission for selling the home. By selling directly, you will be able to save time and keep your cash in your pocket. It will also help if there are many heirs to a home. Selling direct will provide a quick and easy process for all parties involved.
Be Prepared For The Tax Man
Inherited properties are still subject to Capital Gains taxes. These taxes are recovered when the property is sold and are based on the value of the home at the time of inheritance. Many properties won’t be affected by capital gains taxes. Talk to your accountant or attorney to find out how it will affect you.
Should You Hold On To It?
You don’t want to find yourself with a case of sellers remorse. Take the time to weigh your options before selling. Consider not only your feelings but the feelings of other members of your family. Try to come to a consensus on what to do with the property and remember, nothing is worth fighting with your family over, especially after going through such a difficult time.
Do you have questions about how to sell your inherited house? We can help! Send us a message or give us a call today! (832) 662-2202
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