According to one study, one-third of Americans who receive an inheritance end up having negative savings only two years later. This means that most people blow through money that is passed on to them relatively quickly.
If you inherit a property from a loved one, you might be initially excited by the windfall. However, you will soon realize that property ownership comes along with a lot of additional costs, including insurance, taxes, maintenance, and more.
If you are selling deceased estate property, it makes sense to do so as quickly as possible. Otherwise, you will find yourself with an increase in monthly bills until you manage to find a buyer.
Are you wondering what you need to know about selling property that you inherited? Let’s take a look.
Do the Courts Need to Get Involved?
Sometimes court intervention is necessary when transferring property from a deceased person to a beneficiary or living relative. This court intervention is known as probate. Legal proceedings may not be necessary if your loved one left a will behind.
There are different laws in each state addressing how property is transferred to beneficiaries or heirs. In many cases, ownership of the deceased person’s property will go to the closest living relative.
Property title ownership can come in three different forms. These are sole ownership, joint ownership, and title by contract.
Sole ownership is when one individual owns a property. After the individual owner dies, the property isn’t transferred to another person unless that had been stipulated before they passed away. Bank accounts and investments are included under property that is titled through sole ownership.
Joint ownership is when multiple people own a property. One or all of the others listed can have the property passed on to them if “rights of survivorship” are included on the title certificate. The property will be divided among the owners if there aren’t “rights of survivorship.”
Title by contract is a type of property that can be passed on after the owner’s death to beneficiaries. Retirement accounts and life insurance policies can both be included as this type of property.
An experienced attorney can help you understand the way that property is titled and what that means for your options. If it is necessary to go through the courts in order for the transfer to occur then a lawyer can help you reach that goal.
Settling Debts When Selling Deceased Estate Property
The home’s expenses will need to be kept up with if you are planning on selling the home of a deceased loved one. The cost of maintaining the estate is the responsibility of the estate’s executor if there is one. These fees include utilities and mortgage payments.
If the estate has fewer assets than it does debts, you’ll need to look into your specific state laws. In some states, there are lists of priority expenses to help you understand what you need to pay.
Is It Possible for You to Sell the Property?
If both beneficiaries of the property and an executor of the estate have been named by your loved one, then selling the home will require the permission of the executor. If there is a disagreement between the beneficiaries and the executor about what should be done with the property, then it’s possible you will need to get the courts involved.
Having the right paperwork can make selling this real estate simpler. You might have to look for essential documents in the belongings of the deceased if they didn’t leave you with them.
Some of the documents you will need include:
- The deceased person’s will
- Bill receipts
- Copy of the homeowners insurance policy
- Investment account information
- Bank account information
It’s a good idea to address potential points of conflict early on in the process. This can save a lot of money, time, and stress.
Taxes on the Transfer of Property
When you are transferring ownership of the property from your deceased loved one to you, you’ll need to pay estate taxes. This is dictated by federal law. You will also have to pay taxes when you successfully sell the home.
All of these different taxes can add up. It’s therefore a good idea to have a sense of how much money you will owe in taxes before you list the home for sale.
What If the Real Estate Is in Disrepair?
Sometimes, you might find yourself in a situation where you inherited a house that is in disrepair. While you could take on the job of fixing up the house for the market, this can take quite a bit of time and money depending on what work needs to be done. If there are significant issues with the home, you will likely find that it is difficult to find a buyer that is purchasing a home with traditional financing.
Unless you want to take on the project of fixing up the home yourself, this means that you’re looking for a cash buyer for the home.
If you are interested in selling your house to a cash buyer, you might be wondering how the process works. Once you have found a reputable company, you can get a free offer on your home after filling out basic information about the property. Usually, the buyers will then make an appointment to take a look at the property in person before giving you a price.
If you choose to accept the offer, the process goes much faster than the traditional home selling process. You can usually set your own closing date where you will receive cash for the home. If you’re hoping to sell this property quickly, selling to a cash buyer is by far the fastest way to sell a home.
Are you curious just how fast you can sell your property to a cash buyer? Check out this article to learn more.
Why Is It Good to Sell Inherited Property Quickly?
There are three options when you inherit property. The first is to move into the home yourself, the second is to rent it out, and the third is to sell it. Oftentimes, people inherit property in places they don’t live and the simplest option is just sell the place.
If the selling process takes too long, though, it can get costly to inherit property. You will have to deal with homeowners insurance, property taxes, maintenance, utilities, and more.
While it might be tempting to rent the property out, there are a lot of things you’ll want to consider before becoming a landlord. This can be costly and time-consuming. Becoming a landlord means taking on another job, so you’ll want to think about whether or not you really want to do that.
There are also some tax breaks you can benefit from if you sell the home quickly. The taxes that you owe will be based on how much the value of the home has increased since it first came into your hands. This means that the faster you sell it, the less you will end up paying in taxes.
You can learn more about how to find the best buyer for your home here.
Selling Deceased Estate Property: Are You Looking for a Cash Buyer?
If you inherited a property that you don’t want to live in and you don’t want to keep as a rental property, the question becomes which avenue you should use to sell it.
Perhaps the house is in perfect shape in a hot real estate market and you expect that you can have it off your hands in just a few months. However, if you are like most people, the property you inherited needs quite a bit of work and likely won’t sell very fast on the traditional market.
If that is the case, you might consider selling the house for cash. You might consider taking some time to run the numbers on whether you will actually make more money selling the house sooner to a cash buyer rather than waiting for the highest possible offer on the open market.
For many individuals, selling deceased estate property to a cash buyer is the easiest and fastest way to turn the inheritance into cash. With homeownership comes responsibility, and cash buyers can help you offload that responsibility and get cash in return.
Is it time for you to sell property that once belonged to a loved one? If so, get your free offer today!