It’s best to consider an inherited property as a blessing, no matter what condition it may be in. If a loved one who had just passed away left you a property, you may keep, sell, or lease it. The same goes for other types of assets, as applicable.
It may sound easy, but there are things to consider when selling your inherited property. Most of these factors hinge on the property’s status at the time of the owner’s death and the type of legal authority you have on the valuables conferred to you.
You can learn more about the various factors that you need to consider when selling your inherited property by reading the tips below.
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1. Make Sure You Can Sell The Property
Before you can do anything with the property, make sure you’re authorized to take any action pertaining to the property in question.
If the deceased created a last will and testament, the executor named in the document will take charge in carrying out the wishes of the departed person’s estate. All properties of the departed will go through probate—a legal procedure aimed at apportioning a deceased person’s properties. A probate also refers to the process of validating a will’s veracity.
When an executor isn’t available, the family can elect an authorized representative to be recognized as a legal administrator. If all of the persons involved in the inheritance agree on the sale, the executor or administrator can petition before the courts and take it from there.
2. Check Whether There Are Financial Liabilities Attached To The Home
Any unpaid financial obligations such as tax liens and mortgages on a property can complicate the home selling process. In some instances, unpaid debts can be passed on to the heirs of the deceased. Hence, the executor will have to find a way to pay these financial obligations in full.
When selling an inherited property, the heirs will have to deduct these unpaid dues from the total sale of the property. So, make sure that the amount you owe doesn’t exceed the value of the asset you’re planning to sell. Otherwise, the sales could turn into a problem.
3. Find Out How Much You Can Get From Selling The Property
Taking cues from these financial considerations, it’s time to decide how to manage your inherited property. If you’ve established that selling is the most viable solution, you can offer the property to individual homeowners or sell it to home buying companies.
Taking the property to the real estate market means you may have to spend for major repairs to attract more potential buyers. So, check the condition of the house and determine how much you’re going to spend on repairs.
Selling Your Property Fast
If paying for a home rehab is out of the question, look for home cash buyers that won’t require you to spruce up your home. Property buying companies like Safe Home Offer have calculators on their websites that can help you get an estimated value for your property with just a few clicks. This is critical especially if you have to pay for other property debts.
4. Increase The Value Of Your Property
Maintain proper upkeep of the property just as you would in selling your own home. This means you make sure the insurance and utility bills are paid for. Add to that the physical maintenance which may include landscaping, minor refurbishments, and ramping up security, especially since no one’s living inside the home.
Again, if you don’t have enough cash to spend on costly repairs, you can skip these procedures, except for the security and minor fixes. Securing your home helps eliminate the risk of thieves robbing or vandalizing the property, lowering its resale value. The same goes for properties that are in dire need of repairs, as cash buyers will have to deduct the estimated cost of repairs to your home’s buying price.
5. Don’t Forget To Pay Taxes
Whether before or after a successful home sale, you’d need to brush up your skills about tax payments in your state. Make sure you know the local rules that apply when it comes to the types of taxes involved in an estate sale, particularly inheritance and estate taxes.
There are basic guidelines provided for by the Internal Revenue Services (IRS), but these may have slight modifications based on state laws. Consider hiring an estate attorney and an accountant to help you out.
Selling an inherited property can be complicated, especially if there are other persons and outstanding obligations involved.
To ensure a smooth process, check that you’re legally authorized to proceed with the sale. Study all the available options and find out how much you can get from these transactions. Don’t forget to pay the necessary fees once the sale has concluded to avoid problems down the road.