Selling inherited real estate property is slightly different from selling any other property. Here are a few tips to help you sell your inherited home.
Wait For Probate
Don't move to sell the house as soon as you hear that a deceased relative bequeathed property to you. You will have to wait for probate, which is the process of reviewing and validating a will. You might rush to sell the house only for an aggrieved party to challenge the will and stop the sale. Start the sale process once probate is over and the property has been confirmed as yours.
Involve Every Party
In some cases, people leave their homes to more than one relative. For example, grandparents may leave their home to two or more grandchildren to share. In such a case, you need to involve everyone in the sale even if you have seniority. You should agree on things such as the repairs to make or the right price to sell the house.
Set the Right Price
If you have never bought or sold a house before, then the inheritance will be the first real estate property for you to transact. This means there is a real danger of you making an error with the price determination. For example, you might be in a hurry to sell the house and set the price too low or accept the first offer that comes along. Alternatively, you might set the price too high if you allow emotional attachment to the deceased to affect price determination.
Get Rid Of Any Encumbrances
Inherited properties often have encumbrances that you need to get rid of before putting the house on the market. Maybe there are outstanding mortgage payments, property taxes, or debts that you have to clear before selling the house. After all, the owner probably wasn't prepared to sell the property so they may not have cleared some property liens.
Consider the Tax Implications
Lastly, you should also consider that you may have to pay taxes on the property. First, you should know that you won't qualify for the home sale tax exclusion that other homeowners enjoy when they sell their primary residences. The good news is that you will only pay property tax if the property appreciates in value between the date of the previous owner's death and the date you sell the property. Consult a tax professional for a deeper evaluation of the tax implications of selling the house.
Don't forget to hire a real estate agent to help you with the sale. This is even more important if you have never handled a real estate transaction before.Share