What You Need to Know about Selling Inherited Property
Inheriting a home, a condominium, or any other form of real estate property from a late parent, grandparent, or relative can put you in a complicated situation. In some cases, real estate can be a high-value asset and can be a wonderfully generous gift. In other situations, inheriting a property can be a massive headache. Perhaps you don’t live anywhere near the property, or maybe it is in disrepair and will require quite a bit of work before you can realistically sell it. In either case, if you are thinking about selling inherited property, there are a few things you need to know first. Read on for a quick rundown of the key details to keep in mind as you plan to put an inherited piece of real estate up for sale.
- Know the value of the home. How much the home is worth is likely the first variable you’ll want to nail down if you’re planning to sell an inherited property. Having an appraiser prepare a fair market value estimate of the home will let you know how much money you stand to make from a sale. This process can also help you to consider improvements or repairs that may enhance the property’s value.
- Familiarise yourself with any outstanding debts. Did the person who left you the property own it free and clear, or did they still have a mortgage on the asset? Are there any other debts on the property, such as outstanding utility bills or unpaid property taxes? These debts can cut into how much money you would pocket in the event of a sale, so knowing them up front is important for adjusting expectations.
- Understand the ownership situation. If you inherited the property yourself, your pathway toward selling it is much clearer than if, say, you are one of six children and all six of you inherited the property jointly. If there are multiple heirs, you will all need to agree on the best path forward. Does everyone want to sell? If so, who is going to manage the whole process? Having these conversations is frequently a vital component of selling inherited property.
- Know the tax implications. Selling an inherited home is not the same thing as selling a primary residence you bought and have lived in for years. The inherited property may be subject to estate tax. You are also legally required to report proceeds from any sale of inherited property to the IRS as taxable income. Furthermore, inherited property is not eligible for the home sale tax exclusion you’d get if you sold a house you’ve lived in for at least two years. Working with someone who understands the legal implications of inheriting and selling property is a critical step when navigating this process.
- Be ready for the preparation steps. Preparing an inherited property for sale typically involves waiting for the estate to go through probate, cleaning out the belongings of the deceased, and holding an estate sale to sell off their possessions. There may also be renovations or improvements you have in mind and then hiring a real estate professional to help you list, show, market and sell the property. When it comes to selling real estate, it’s a more in-depth and extensive process than most people may think.
Simplify the Process of Selling Inherited Property with Fair & Fast Home Buyers
As you can see, a lot goes into selling inherited real estate. If your goal is to sell the inherited property quickly and with minimal fuss, consider working with Fair & Fast Home Buyers. We use sophisticated software to determine fair market value for homes (factoring in location, condition and other variables) and then make you a fair offer for your property based on those findings. Listing a property on the open market and waiting for it to sell can often be a months-long process. We eliminate all the waiting, all the marketing and all the other steps that are typically necessary to sell a house, giving you a fairer and faster way to turn that inherited property into cash.
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