Inheriting a home after the passing of a loved one comes with many emotional implications. While it can turn out to be a valuable asset for you and the family, it can also leave you with a number of financial decisions to make.
After already dealing with the loss of a loved one, this can become quickly overwhelming, but you’ll still have to decide on what to do with the home. Essentially, you have three options: move into it, rent it out, or sell it. Of these three, the simplest and most common is to sell it.
So what should you expect when selling an inherited home?
Where to Begin
While inheriting a house sounds like a great thing, it doesn’t always end up this way. Though most family members generally have good intentions, they may not be as organized as they should be. Not to mention, you never know what type of surprises, such as unexpected or contesting benefactors.
The best thing you can do is ask yourself these three questions:
- Is there a will? – If so, this makes the entire process much easier!
- What does your family tree look like? – How many siblings or others are going to say they have rights to the property?
- Are there any issues with taxes? – This may come as a surprise, but it’s actually very common for people to be behind on property taxes.
Common Issues When Selling an Inherited House
If you ever do find yourself in this situation, hopefully, the selling process will be straightforward and simple. However, many times it isn’t. There are several common issues that can arise during the process.
Common issues include:
- Public record errors
- Unknown liens
- Missing heirs
- Undiscovered wills
- Illegal deeds
Any of these things are enough to add a great deal more stress. For this reason, it’s smart to hire an attorney to help you through the process of selling an inherited house. This way, if any of these items come up, the estate attorney will know exactly how to handle them.
While the element of surprise with the issues above may sound like enough to deal with, other things need to be considered.
Here are some other things to think about:
- Is there a mortgage tied to the property? You’ll need to determine what type of clauses were included on the mortgage. For example, is there a due-on-sale clause? If so, this means the balance of the mortgage is due upon transfer to another person.
- Does the home need repairs? If the home has been let go and needs repairs, it may be best to look for companies that buy houses for cash. In this case, they buy the property “as is”, and you don’t need to sink capital into costly repairs.
- What are the tax implications? Will you be responsible for paying Capital Gains taxes? If the profit is less than a certain amount or you can live in the home for 2 years before selling, the answer is no.
- How long will the property sit on the market? Every month that passes is another mortgage payment you must pay.
Selling an Inherited House to a Cash Buyer
In the end, deciding what to do with an inherited home is not an easy decision. You may find that your best option is to find companies that buy houses for cash and get rid of it as quickly as possible. Tropic Coast Homes buys properties for cash in any condition in Southwest Florida. Receive a no-obligation offer today so you know all of your options.