When selling inherited property, it’s important to ensure you empower yourself with essential key facts beforehand to save time and money. Regrettably, not everyone considers an inherited property a blessing. In this article, we will take a look at some essential things to know before you make your decision to sell or not.
Feeling Confused About Selling Inherited Property
Understandably, it can be a very confusing time. Maybe you are not sure what to do or when to do it. Well, it’s typical to feel confused about selling inherited property, especially if you are in it alone. And if you have family members connected to the inheritance, even more so.
Maybe you too want to see how to sell your inheritance – and there can be a variety of reasons for that. For example, it may require too many home improvements before you can move in. Or home maintenance may end up too expensive. Even more so, the location may be unsuitable for your needs or preferences. Unfortunately, however, when it comes to selling inherited property, mistakes are usually common and, in some cases, quite costly.
Below, you’ll find a list of the most common mistakes, as well as tips on how to avoid them. They include neglecting to pay inheritance taxes, failing to seek professional advice, not conducting a home inspection, and overlooking the necessary repairs or upgrades in the house.
1 – Not Paying The Inheritance Tax
Typically, if you inherit a house, the deceased distributes the assets often in a will. And it’s up to you to fulfill whatever the conditions and terms are. But, of course, if there is no will, state law will determine the distribution of assets. In every case, when selling inherited property, you should seek the advice of an attorney.
However, be aware that the deceased’s assets will be subject to inheritance taxes in many cases. In the US, these estate taxes become levied on the value of the assets at the time of the owner’s death. Therefore, always make sure you research to see if taxes are due on the property.
More so, you may have heard of a legacy tax exemption, which is the amount of inheritance with taxation exemption. Consult a tax professional if you have any questions regarding inheritance taxes or how to pay them before selling an inherited property.
2 – Conducting A Home Inspection
When selling inherited property, it’s good to remember that eventually, it will belong to someone else. Thus, you should make sure that a trusted home inspector completes a thorough home inspection. After all, you want to ensure the home meets all safety requirements for the incoming family. You can do this before or after you decide to put it on the market.
In addition, a home inspector can tell you whether there are structural problems that will require costly repairs. You can also ask the inspector any questions you may have regarding upkeep. At that point, you can decide whether or not to upgrade the home and make necessary repairs.
Remember, if you refuse a home inspection, it’s a huge red flag. Yet, approximately 95% of buyers require one. More so, this means only 5% of potential buyers consider buying a home without an inspection. So when selling inherited property, consider your options.
3 – Failing To Make Repairs Before Selling Inherited Property
When selling inherited property, the house must look attractive and appealing. The exterior of the house, as well as the interior, should be in good condition. The home should also smell fresh and pleasant. And it’s a good idea to consider hiring a home stager and a professional cleaning service to help you prep the house before selling.
However, sometimes people make the mistake of thinking that they don’t need to make repairs on an inherited property before selling it because of how much they might be able to get for it. Additionally, this is undoubtedly true if the house was in excellent condition when received. However, repairs may be necessary, depending on the state of the home.
For example, if there were leaky faucets or broken windows, the house may have suffered damage as a result. In addition, if there is any clutter inside the house, you should attend to it. Or, if the yard has overgrown weeds and debris, you should tend to this as well. When selling inherited property, you should not treat it any differently.
4 – Not Focusing Enough On Marketing
When selling inherited property, it’s a good idea to market it effectively. The best way to market an estate is by using information that makes the house stand out among your competition. For example, if you have inherited a property in an area with good schools, having the best grades on the front lawn will tell potential buyers that it is good to raise a family.
If you are unsure what types of marketing techniques to use for your inherited property, you can consult an expert. Ideally, you might want to post photos of the house and its interior online or hire a real estate agent to market the estate. While some folks choose to sell the home themselves, it’s always a good idea to hire professional assistance in the long run.
5 – Not Obtaining Legal Advice
Of course, you’ll want to consider legal considerations before selling your inherited property. More so, since the process of selling is somewhat more complicated than selling a typical estate. For example, if a will is involved, ensure all the terms and taxes meet legal requirements. Also, confirm whether or not you need to obtain a court order to sell the property if there is no will involved.
In addition, a home inspection may reveal that the property has issues with zoning laws or that there is a defect that will affect the sale of inherited property. In this case, you will need to consult an attorney for legal advice. For example, suppose you sell inherited property without understanding all of the legal considerations involved. In that case, you could run into serious problems or have the courts tell you to sell it for a lower price.
The Bottom Line When Selling Inherited Property
Selling inherited property is not as simple as selling your own. You must take into account the wishes of the deceased as well as state and federal laws. It can also be challenging to find a buyer for inherited property.
However, if you do your research and seek the advice of professionals, you should sell inherited property without running into any problems. Be sure to work with the right people. And don’t neglect your responsibilities. Typically, when you follow all the guidelines, things tend to work out.
When it comes to any crisis, you’ll want to make sure you have an emergency kit ready to go at all times. Whether it’s inclement weather or any disaster, we all need to make sure we have emergency kits ready for your go-bag! Furthermore, it’s important to have one in your car and your home as well.