Many people who have inherited a home don’t know what to do with it because inherited properties often have many issues attached to them that make them difficult to sell, but if you know what problems to look for and how to manage them, selling an inherited property can be a lot less stressful. This is why we have created this 5 step guide to help you understand more about inherited homes so that you can solve some of the problems that revolve around selling them:
1. Identify who owns the property
The first thing you need to do is clearly identify who is the heir of the property when you’re in the process of selling an inherited house. If a will of inheritance was written, then consider yourself fortunate, but if a valid will was not written and the property deed doesn’t include joint tenancy with survivorship language, then there may be disputes over who actually has the title to the inherited property.
You cannot sell a home properly with a title until these heirship issues are resolved, and resolving these issues can be complicated if their are multiples marriages, several generations of people who died without writing wills, or multiple heirs. Sometimes the heirs are unwilling to work together to solve these problems, and this complicates things even further.
This is why 123soldfast works directly with title companies and communicates with the family of the deceased. We want to make the process of selling an inherited property as straightforward as possible. We prepare all of the necessary documents for our sellers at no cost, and we have helped a lot of people resolve the title issues that they were facing so that they were able to settle quickly.
As you can imagine, there can be many legal issues involved with selling an inherited property, so it’s best not to attempt to fix any heirship problems or title issues by yourself without a lawyer. 123soldfast will work with a real estate attorney and the title company at no cost to you, and we will release you from any liabilities that you may face in the future. We’ll also give you a fast cash offer on your home, and oftentimes we can complete closing in a matter of days.
2. Get a vacant home insurance policy
In some situations, there are aren’t too many issues with an inherited property. In these situations a presumed heir or family member is able to take over the maintenance of the inherited home. This involves things like protecting the home, maintaining the lawn, or keeping the house looking nice so it is able to sell easier. However, one of the most important ways of maintaining a vacant home is to make sure that it’s insured, so getting a vacant home insurance policy is really important. A vacant home insurance policy will help protect the vacant property from liabilities.
3. Obtain an appraisal for your inherited house
You can get a price for your inherited estate through an investor or through the open market. Sometimes people prefer to sell their home to an investor because they can sell the inherited home “as is”, they can get cash for the home, they can sell the home quickly, they know they sale will close, and it’s simply more convenient.
4. Know the real deal about inherited homes and taxes
In most cases, when you own a home, you can benefit from home sale tax exclusions if you owned the home for two out of the five previous years. This is not the case with inherited houses. You can, however, benefit from a home sale tax exclusion if you live in the home for up to two years and then sell it. But if you inherit a house and sell it you will benefit from taxes. What happens is that the proceeds are calculated based upon the sale price of the house plus any improvements you made to the house before you sold it. Just keep in mind that the tax basis will be at the fair market value at the time the owner of the house died. In the case the inherited home appreciated substantially, the person who inherited the property won’t need to worry about owning a large amount of taxes.
5. Have reasonable expectations
Inheriting a house can be an easy thing to deal with, but in many cases it is far more complicated than people initially realized. In addition to some of the issues with inherited homes that were mentioned in this article, a person who has inherited a home may also encounter title issues that they will need help with when they sell it. These title issues can include: missing heirs, errors in public record, unknown liens on the property, illegal deeds, or an undiscovered will.
Dealing with the hardships that can be involved with an inherited home can add to the stress of coping with the loss of a loved one. So, keep in mind that 123soldfast is here to help you. If you’re planning to sell your Houston home or if you’re simply researching your options, you can contact us for a no obligation offer on your home within 24 hours. Give us a call at 713-322-3861, and we’ll be more than happy to assist you!