A quick house sell may be necessary for some situations, but you need research before selling your inherited house. If there’s a deal in place, you can apply for probate and proceed to review buyers’ options. There’s also the aspect of taxes, maintenance, and dealing with insurance and mortgage companies. Here’s a comprehensive guide to help you sell an inherited house.
Is Quick House Sell Possible for Inherited Property?
You can sell a house immediately after inheriting it. Various steps are involved, primarily to prove the inheritance and fetch the best value from prospective buyers. So how do you sell a house quickly after inheriting it?
You’ll need to calculate the costs involved and follow the due process. Some buyers purchase the house as-is, but maintenance will fetch the best value. Below are the costs involved in selling an inherited home:
If the former/deceased owner of the property finished paying their mortgage loan, you can stop worrying about this expense. Property with pending mortgage payments will require the new owner to continue paying the monthly installments on time.
You should speak to the mortgage company immediately after inheriting the property to develop a new plan. Some companies offer a payment holiday, so you can prepare for the additional monthly expense.
Inherited homes may remain vacant for some time and can become damp or attract pests and squatters. Security issues and burglary also spike when a property is left uninhabited. You should set up adequate insurance for the property and inform the carrier about the new development.
The insurance company will ask you to turn off the electricity, gas, and water stockpot for security issues. You may also need regular inspections and will pay for the monthly premiums. Contact the carrier immediately to determine your insurance responsibilities.
When you opt to sell an inherited house, there are three types of property taxes to consider: inheritance tax, capital gains tax, and income tax. Inheritance tax is the amount you pay if the property value exceeds the set threshold, for which the tax is needed. You can avoid it if the value is below the set threshold.
Capital gains tax is the tax you pay when you sell a house that isn’t your primary dwelling. It also applies when you decide to rent the property. You can avoid it by nominating the house as your primary residence before selling.
Income tax is the amount you pay if you sell the inherited house to generate income. The tax also applies if you rent it out. You should calculate the required taxes before selling the property to avoid issues with the revenue authority later on.
Inherited property left without inhabitants requires more maintenance work than those with residents. Visit the house regularly to complete general maintenance, such as mowing the grass, trimming the trees, and repairing leaks.
Maintenance costs can spike quickly if you inherit an old property or one with massive day-to-day maintenance work. An inspection will reveal areas you should maintain and repair, but you can skip maintenance entirely by selling the house to as-is buyers.
e) Other Costs
You’ll incur inspection costs and commuting fees between visiting the insurance and mortgage carriers. Setting up miscellaneous funds to cover the unknown expenses is vital, especially if the property is miles away from your residence.
Inheriting a house may also require meetings with lawyers, applying for probate, and researching the best buyers. The process can consume a lot of your time, interfering with your work schedule and other activities.
4 Steps to Quick House Sell For Your Inherited House
Once you know how much it’ll cost to sell an inherited property, you can focus on finding buyers. The process of selling an inherited property varies depending on the particular house and circumstances surrounding the inheritance. Here are four steps to help you to a smooth process:
1. Check the Will
The first step to selling a house immediately after inheriting it is ensuring you are the legal inheritor. Your only proof is the will from the deceased owner. If there’s no will left behind, you should contact an experienced solicitor specializing in wills and probates.
The will attributes specific names with the probate and may illustrate how the estate should be divided. If you are a named beneficiary within the will, you’ll enjoy a much simpler process. You can immediately contact named parties to begin applying for probate.
2. Apply For a Probate
All inherited properties must go through a probate process before being sold. The process takes nine to 24 months, depending on the circumstances. It involves validating the deceased person’s will and drawing up a list of their financial assets and estate.
Probate gives an executor the legal right to deal with the deceased’s estate (act on their will). You can’t sell a house until you establish a relationship with the property. Probates don’t apply if the house was jointly owned with you as the automatic beneficiary if the person passes away.
3. Sell the House
You can sell an inherited house as soon as you validate legal ownership after the former owner’s passing. Various options are available when you want to sell a property. Use a traditional estate agent, an auction house sale, or a regulated property buying company.
Traditional agents offer the maximum value if you find professionals with local area knowledge. Agents are also the slowest route to selling an inherited house, and buyers can renegotiate the price. You may also end up in a long-term marketing plan until the house is sold.
Auction sales allow you to establish a minimum acceptable price. The downside is waiting for the next auction dates and no guarantees for the sale price. You may also fail to sell the property on the auction date.
Regulated property buyers offer the best route to selling an inherited house fast. You can complete a discrete cash sale within a short amount of time with no mortgage funds required. Solicitor fees are also paid, and no further negotiations are necessary after agreeing on the final price.
4. Pay Necessary Taxes
After selling an inherited house, you should pay applicable taxes immediately. You can make the payments when completing the annual tax forms for the specific year. Use online calculators to determine the exact tax the IRS expects.
Review the tax requirements and report them within the provided period to avoid fines from the revenue authority.
Finding a Property Buyer
Buyers will offer varying prices, so find the right customer for your inherited property. If you choose a regulated house/home buyer, make sure you review each offer to find the best deal for the house. Top-rated property buyers exhibit the following characteristics:
• Have enough cash reserve to purchase the home within a reasonable amount of time
• Offer a simple, transparent process to allow you to deal with the grief of losing a loved one
• Are open and transparent about service fees and may cover the legal fees
• Have fewer conditions and can purchase a house as it is without maintenance
Selling an inherited house can be a daunting process, especially if it’s your first time. At GTG Buys Homes, we offer a simple process allowing you quick house sell. Simply tell us about your property, and we’ll schedule a walkthrough and present a fair cash offer. If you accept the offer, we will close at a local credible escrow company within the shortest time possible.