How To Sell An Inherited Property
Although most people would view inheriting a property as a blessing, there are often other factors to come into play. For one, you may be dealing with the loss of a family member. At the same time, you are trying to decide what to do with the inherited property.
Many times, people choose to sell an inherited home. The home may be located too far for you to consider moving to or you just may already have your own home. While selling a home takes additional effort and research, it may be the best way for everyone involved to share the proceeds from the inheritance and avoid any disputes within the family.
Here are some of the steps you should take to get ready for listing and selling an inherited property.
Research the Local Market
Headlines and news stories today discuss the strength of the current real estate market, including price increases, low and rising interest rates, and a high demand for home purchases. These industry trends are generally true nationwide; however, there are still specific parts of the country where sellers have not seen much action. Researching areas near the inherited property can help legacy homeowners get a better idea of prices and how long the home might be listed on the market.
In your research, examining how comparable homes in the area are selling for will help you determine a reasonable range for the listing price. Asking a local agent can help with this process. Depending on the length of time your friend or family member owned the property, the home’s price may have appreciated due to many different reasons, such as more demand from buyers in the area. On the other hand, the home price may have decreased in recent years if the area of the home has been on the decline.
Talk With Your Family
Unfortunately, many times, ugly disputes can arise when dealing with an inherited property. Other family members may feel that they are getting the short end of the stick. On top of the emotion from losing a family member, any added stress can really cause unnecessary arguments. Before the property is even listed, family members should sit and discus a sale price range and how any profits will be split up. Some families choose to make this discussion official by having a lawyer draw up paperwork, while others are content with a verbal contract.
Be Prepared to Do Some Work
Once you’ve decided to sell, there are steps that should be taken before putting the home on the market. Some of these small, yet essential tasks might include:
- Organize and dispose of clutter – garages, attics, and basements may have been used as storage areas.
- Decide on any repairs you want to make – whether it’s just the basics or bigger ticket repairs.
- Remove extra furniture from crowded for better spacing.
- Do a deep cleaning – walls, carpets, floors, etc.
- Make sure the yard is cleaned up of any overgrowth.
- Power wash the home exterior and tend to any repairs if needed.
These improvements can make all the difference in how long it takes your home to sell as well as how much the home winds up selling for. Of course, the longer you take to make these improvements may cause you to deal with both direct and indirect costs while holding the property.
Prepare For Taxes
Included in the sale of the property is the taxes after the transaction. Most people will pay capital gains tax on the money from the sale of inherited property. The actual amount of tax owed can vary based on the property’s assessed value, which occurs at the time of the owner’s death. Because of this rule, legacy homeowners should only pay taxes on the difference between this assessed amount and the amount received when the property sells. Properties sold at a loss are considered a capital loss on taxes, allowing legacy owners to deduct up to $3,000 on their taxes.
We Can Help
At Property Buyer Connect, we buy homes as-is. You won’t need to worry about any repairs, cleaning, or additional fees. We make the process quick and easy so you don’t have to worry about it. Call us at 215-770-3122 or send us a message today!