5 Reasons to Sell Your Inherited House Quickly
Inheriting a house can come with a mix of emotions. An inherited home can be a valuable asset for you and your family, but you also have to be prepared to make a number of challenging financial decisions. In the wake of a loved one’s passing, these decisions can be overwhelming, but eventually you’ll have to decide what to do with your inherited house. You have three main options: sell it, move into it, or rent it out. Of the three options, the best and simplest option is typically to sell the house and split the proceeds with the heirs. 1. Houses sitting empty are costly. Even a “free” house can still be costly. A house sitting empty creates mounting costs and ongoing expenses. Property taxes, homeowners insurance, utilities, maintenance, and general wear and tear may make a huge dent in your finances. If the house is not being lived in, it will slowly deteriorate over time, resulting in what could be a substantial drop in the home’s value. 2. Rental properties take a lot of time and effort. If more than one person is an heir to the house, you’re probably not going to live in it together. That really leaves you with two options: sell it or rent it out. However, it’s important to think twice before turning the home into a rental. Becoming a landlord can be costly and time-consuming, and it shouldn’t be treated as a hobby—it’s a business. You should consider the downsides of owning a rental property to determine whether or not you’re cut out for it long term. 3. Inherited houses are typically in disrepair. Most inherited homes are in fairly bad shape because many times the homeowners were elderly, ill, or just unable to provide proper maintenance. The beneficiaries will be responsible for all the necessary repairs before either living in it, renting it, or selling it. Repairs are costly, even if everything goes right AND you have a good contractor that you can trust. 4. Probate is time consuming and expensive. When a person passes away, his or her property is put into a court process called probate. Probate is a legal proceeding used to settle a person’s estate after death that can be complicated, time-consuming, and expensive. It often creates a complex nightmare of legal and financial problems, and it can be overwhelming for families to deal with the loss of a loved one while meeting with lawyers, accountants, funerary services, and more. 5. Capitalize on massive tax breaks. If you sell the house quickly after inheriting it, even if it significantly increased in value since the deceased purchased it, you won’t pay capital gains tax. The property’s tax basis is brought to current market value at the time of the previous owner’s death. That means you inherit the house at the fair market value at the date of death. When you sell the property, any tax you owe is based only on the increase in value while the house is in your hands. Inheritances can be filled with emotional consequences, as well as financial ones. Many families cannot handle the stress that comes with cleaning out inherited property, so they end up doing nothing, which can be costly. Don’t let your inherited house cost you money or cause you stress! Avoid all the hassles and sell your house. You may not have the funds, time, or interest to fix your inherited house for sale or for rent. Perhaps you would prefer cash rather than the responsibility of caring for the property. Whether you are in probate or serving as executor of an estate, we will buy your house regardless of condition and help you ease the burden of inheriting a house. Let us show you how easy selling your inherited house can be!
A Brief Guide for Selling Your Inherited House
Selling a house that you’ve inherited can be filled with many emotions and challenges. That’s why it’s important to be prepared and avoid obstacles that might waste time, cost money, and inevitably cause frustration. Use these helpful tips to make the process as smooth and painless as possible. Review Trust and Will Documents Find out the name of the executor, the person who has control of handling the estate and the right to sell the property Make notes of who the beneficiaries are, what the assets are, etc. Obtain a title report to see who truly owns the property and any other liens and encumbrances that may be attached to it. Most title companies will provide this report for free, especially if they believe that you will use their services on the sale of the property. No Trust or Will? If there is no trust or will, you have two options to move the property into your name – probate and heirship affidavits. Probate is most commonly used for people who want to keep the property for a while and typically requires hiring a probate attorney. If you wish to sell the property quickly and it is located in Texas or a handful of other states, you can save time by completing an heirship affidavit process. Most real estate investors work with specialized title companies and lawyers who can take care of this entire process for you. Remove Tenants (if any) Properties are harder to sell with tenants living in them. Showings can be difficult, and you will never know the condition of the property on any given day. Give the proper notice to your tenants to move out. Every state has a different protocol, so ask an attorney for the appropriate way to handle this. If the tenants refuse to leave, you may be facing an eviction, which can be expensive and time consuming. You’ll especially want an attorney on your side for this. Clean Out Personal Items Cleaning out a property takes time. Start early and keep going. This can be the hardest part of all. Most investors will purchase the property “as-is,” meaning you only have to worry about taking the items you want to keep. You can leave the rest behind. If you need help, don’t hesitate to hire a professional organizer to help you sort through everything. Have a hauling company pick up everything you don’t want or schedule the cleanout around your city’s bulk trash pickup days. Hire an estate sale company to sell the items and put some additional cash in your pocket. Evaluate the Property’s Condition Does the home have maintenance needs? Do you plan to remodel the property before listing it? Would you rather sell it “as-is”? Obtain multiple bids for repairs or remodeling needed at the property. We always suggest getting three bids for each job. Ask for references, check online reviews, and make sure their license and insurance are up to date. Don’t forget to ask if the city requires permits and inspections for the work being done. If you decide to sell to a retail buyer, make sure to give the property a good cleaning. Nothing is more distracting to conventional buyers than dust, rust, and grime. Also, try to remove any lingering odors (especially cigarette and pet odors). An ozone machine is great for this. Determine How to Sell the Property List with a real estate agent, sell to a cash buyer, or sell to family? There are pros and cons to each. Fixing up a property and listing it will generally yield a higher return, but it will take much longer (months to a year) and require a lot of time, money, and energy. Investors will usually buy the property in “as-is” condition, with tenants in place, and can close in a matter of days if needed. Qualify the Buyer Whether it be a conventional buyer or a cash investor, make sure the buyer can complete the transaction. Ask for references from past clients, as well as from other real estate professionals. Review and understand the contracts before you sign anything. Always ask for proof of funds! If you have an inherited house and are wondering what to do next, we are here to help. Whether you are in probate or serving as executor of an estate, we are happy to answer your questions. We can help minimize the burden of selling an inherited home, make you a fair offer to purchase the house in its current condition, and close on your schedule. Let us show you how easy selling your inherited house can be!
Beware of Novice Real Estate Investors
If you’re in a complex situation with your home or need to sell it fast, selling to a professional real estate investor can be a great choice. Reputable, experienced real estate investors can give you a fair offer and make selling your house quick and easy. But buyer beware: Not every real estate investment company is created equal. While many real estate investors are trustworthy, novice or dishonest investors can leave you in a difficult situation. Some so-called investors promise a great price but don’t have the funds to back it up, wasting months of your time and money. Here are some questions to ask yourself to make sure you’re getting a fair deal. Is this a genuine, physical company? Real estate investing doesn’t require a license. That means anyone could call themselves an investor, even if they have no previous experience. Be cautious about individuals who claim to be investors but do not have a legitimate, registered business behind their claims. They may not have the know-how or funds to actually close the deal. If the company is online-only, do your research too. Some companies simply gather your information with no intention of buying your house. They then give your information to another real estate investment company for a price. How are they advertising? You may have seen signs on the side of the road claiming to buy houses. Often, online real estate investment classes will tell their students to use these tactics for advertising. However, in many places, these signs aren’t even legal. If there’s no company name and just a phone number, that can be a red flag. Reputable real estate investment companies will put money into legitimate branding and advertising. Look for a company name, website, and other online marketing, like social media. What do people say about them? You can learn a lot about a company with a quick online search. If you’re dealing with an experienced investor, you should be able to find testimonials or reviews from past sellers. These reviews will help you have confidence that others have successfully sold their house with the investor. Often, companies will have reviews for you to read on their websites. But see what people say about them on other sites too. Most commonly, you’ll find honest reviews on places like Google or the company’s Facebook page. Are there a lot of conditions you don’t understand? While real estate can be complex, you shouldn’t feel pressured into signing something you don’t understand. Professional real estate investors know the business. They partner with you to make sure the terms of the sale are clear and a win-win for both parties. Unfortunately, some less-than-honest investors will take advantage of your urgent need to sell. They may offer you one price but leave it open so they can lower the price later on. Or they may add on fees or hidden costs. When they switch the deal at the last minute, it can leave you in a hard spot with fewer choices than before. Is the offer so good it’s hard to believe? In the end, deals that are “too good to be true” probably are. If you receive an offer that’s significantly higher than another investor, be sure you understand the terms. Even if they aren’t intentionally dishonest, novice investors may make promises they can’t keep due to inexperience. Then, you end up months down the line having to start over because they are unable to close on your house. If something just doesn’t feel right, trust your instincts.