Introduction: Inheriting a property can be a blessing, but it can also come with its own set of challenges. In this guide, we will discuss some of the common issues that arise when selling an inherited property, such as taxes, difficult relatives, house payments, and more. We will also provide tips and advice to help you navigate these challenges and make the selling process as smooth as possible.
Capital Gains Tax: One source of stress for many people when selling an inherited property is the fear of paying income tax on the proceeds of the sale. However, the good news is that you only have to pay the lower capital gains tax. While it’s important to set aside some money for taxes, don’t let tax concerns stop you from selling the property.
Property Taxes: If you decide to keep the inherited property and become a landlord, you’ll have to pay property taxes on the home. Some landlords build these costs into their rent, but keep in mind that being a landlord can come with its own headaches. If you decide to sell the property, you’ll only have to worry about federal and state taxes on the sale.
Difficult Relatives: In some cases, multiple parties may own a share of an inherited asset, and selling it may be the only fair way to ensure everyone gets what they’re entitled to. However, this can also lead to disagreements about which offers to accept, how much money to ask for, and other factors. It’s important to seek the help of professionals who can guide you through these situations and ensure a smooth sale.
Selling a Deceased Parent’s Home: If you’re selling a deceased parent’s home, verify that the executor of the will has the power over the real estate. If this isn’t the case, other beneficiaries of the estate may be able to sell the property without the executor’s consent. It’s also important to remember that selling the home can be an emotional experience if you had a close relationship with the deceased. Seek advice from outside experts and make sure you feel confident with your decisions.
House Payments: Inheriting a house means inheriting all the costs of maintaining it, including HOA fees, basic maintenance, insurance, and any payments owed. Before deciding whether to sell the property, sit down with your family and evaluate expenses to see if keeping the property is financially feasible.
Transferring Property Deed: The process for transferring a property deed from a deceased relative varies depending on whether or not the deceased had a will. Use the deceased person’s deed to determine how the property ownership can be transferred depending on their ownership right.
Selling Inherited Property to an Investor: If you’re considering selling your inherited property to an investor, be sure to investigate their reputation thoroughly. Don’t accept the first low ball offer and assume it’s the best you can do. Read reviews, investigate websites, and call and ask questions to find a professional investor who can make the process as painless as possible.
