To sell an inherited house can be a bittersweet experience. While it can be a source of financial security, it also comes with the challenge of deciding what to do with the property.
Selling an inherited house is a complex process as well, especially for those who are unfamiliar with the real estate market. However, with proper planning and preparation, it is possible to navigate the process smoothly and get the best value for your property.
In this guide, we will provide you with a comprehensive overview of the steps involved in selling an inherited house, from obtaining a clear title to paying taxes.
Things to Consider When Selling an Inherited House
- Probate process. The probate process is a legal procedure that takes place after a person—who owns one or several assets such as real estate properties and stocks—dies. It is a process where the court identifies, values, and accordingly distributes the deceased’s assets and debts. Or based on the state laws in case the deceased died without a will.
While this would not directly influence the sale transaction, the process is time-consuming and complex. It might be kind of frustrating especially if you badly need cash and the inherited property is the only asset you can sell.
- Estate tax. It is a process that legally transfer a property’s ownership from the deceased person. It is imposed on the deceased person’s estate and at the federal level and is based on the total value of the property. The tax rate, however, can vary depending on the state and the value of the estate.
In addition, it is important to note that not all states have estate taxes or inheritance taxes, and the rules and exemptions for these taxes can vary by state.
- Inheritance tax. As its name suggests, it is a tax imposed on the beneficiaries which they are obliged to pay. It is typically imposed at the state level and is based on the value of the inheritance received.
The rate for inheritance tax, however, may differ depending on the state as well as the inheritor’s relationship with the deceased person. There are several tax laws existing today.
Hence, it is best to consult and seek help from a tax professional first to help you understand all the taxes you will have to pay for selling an inherited house.
How to Sell an Inherited House
Step 1: Clear Title Issues
The first and most important step in selling an inherited house is to secure the property’s title and make sure it has no issues.
Take the probate process, as an example. As mentioned earlier, the court prohibits the selling of any asset that is under the probate process. Also, inherited or not, you cannot legally sell a property that is not fully paid yet. So, make sure that the property is already paid.
Step 2: Check the Property’s Condition
The second step is to get your property a thorough inspection. It is a crucial aspect when it comes to selling properties—although many homeowners missed it—and plays a vital role in earning high appraisals.
A home inspection can help you point out repairs that can increase the value of your house as well as make it more attractive to potential buyers. Addressing these issues before you list your property avoids potential delays or complications during the selling process as well.
Additionally, having a clear understanding of the condition of the property can help you accurately price the house and avoid overpricing or underpricing it. Therefore, it is always advisable to get a professional inspection and assessment of the house’s overall condition before selling an inherited property.
Step 3: Hire a Real Estate Appraiser
Once you have completed the second step, the next step is to hire a real estate appraiser. Asking for help from a professional real estate appraiser can give you several benefits, specifically in terms of the sales price.
A professional real estate appraiser will provide you with a complete report concerning your house and its market value. Such details can also be useful when making decisions about repairs or other improvements to the property.
Step 4: Choose How You Want to Sell It
For the last step, decide how you want to sell your house. Homeowners typically do it through traditional selling, which is property listing. Some, on the other hand, resort to selling it to a cash buyer or real estate investors.
Here’s how the two differ:
- Hiring a real estate agent. Hiring a real estate agent when selling your house is beneficial for several reasons. Real estate agents have extensive knowledge and expertise in the real estate market, can provide accurate pricing expertise, and have access to a range of marketing tools and techniques to promote your property and attract potential buyers.
Working with a real estate agent can ultimately help you get the best return on investment and navigate the complex process of selling your house with ease.
- Sell it as-is to a cash buyer. Selling your house to a real estate investor can have its advantages. Real estate investors are typically experienced buyers who are willing to buy properties in any condition, without the need for repairs or renovations.
They also usually close deals quickly, allowing you to receive cash for your property faster than traditional homebuyers. However, it’s important to be cautious when dealing with real estate investors and do your research to ensure that you are working with a reputable investor who is offering you a fair price for your property.
To sell an inherited house is indeed a tough and demanding process. If you want a fast, hassle-free, and reliable way to profit off your property, then contact Get Your Fair Offer now and consider your house sold!
Get Your Fair Offer is one of Houston’s trustworthy real estate investors. We guarantee to give you the best and fair price offer only, which your property deserves.
Reach out to us now and get a REAL offer! Call us at 281-709-2999.