In this post we’ll take a look at selling an inherited home and some of the pros and cons you’ll need to consider.
Whether or not you should sell an inherited home depends on a variety of factors about the house and your ability to afford the expenses. Selling an Inherited home may require a few additional steps, but for many heirs it is the best choice after careful consideration of all options.
Location of House
If you’ve inherited a home that is located out of state or a long distance away, this has its own set of challenges. Do-it-yourself maintenance will be difficult to do on a regular basis. On the other hand paying a handyman or contractor each time can be very expensive and leaves you in a position of trusting that the work is done to a high degree of quality. Renting the home is another option for long-distance home ownership, but again will require that you hire property managers to oversee daily renter requests and additional maintenance.
Prepare to Pay for Expenses
Once the Will goes through probate and you’ve been legally allowed to own the home the first thing you’ll need to do is pay outstanding expenses. These expenses can include taxes, mortgages, and insurance.
Taxes
There some taxes you may have to pay after inheriting a property such as the inheritance tax, capital gain tax, and income. You should check with your attorney about the taxes you are liable to pay and pay them within the first 12 months after you have been legally cleared to possess the inherited home.
Insurance
After inheritance, you have to pay for some insurance policies. There are three types of insurance policies you may be liable to pay: Unoccupied insurance if the inherited house will be unoccupied within the first 30 days, landlord insurance if the home is to be rented, this policy protects you and the tenants, and lastly the second home insurance policy if you intend to use stay in the inherited home.
Mortgage
You should also check the status of the current mortgage to know whether there are remaining payments that need to be made. If there are payments to be made have to look at the terms and conditions of the mortgage to know how you are expected to make the payments.
All bills such as electricity, water, and telephone bills that come before selling the home should also be paid on time to avoid disconnection and related penalties.
Selling an Inherited Home
After clearing the above process and you are free to start the selling process, You have to choose whether to sell the home using either a real estate solutions company like us, or estate agents. Both options have advantages and disadvantages.
Estate agents can help achieve a higher price on the market, however that is only after repairs and upgrades are completed to bring the house up to market standards. Depending on the real estate market, house location and condition, the home could take more than a year before getting a buyer. During this time you will be required to continue to pay mortgage and other utilities.
When you want to sell the inherited home within a short period of time, get the most money for the as-is condition, and spare yourself additiona expences, call us. We buy homes and can close in as little as five days compared to the estate agents who may even take more than a year. Our company can also pay for the related selling expenses on behalf of the beneficiaries. We’ll buy the house in as-is condition so you won’t need to worry about out-of-pocket expenses and delays to repair and upgrade the home.