Strategies to Sell My Inherited House
Inheriting a home from a family member comes with its own sets of rewards and challenges. There can be emotional and financial issues tied up in the property. Inheriting a house comes with many financial and physical responsibilities. It is not always a joyous occasion to inherit someone’s property. If you don’t have plans to live in the home and don’t want to rent out the property, selling is likely your best option. Here we will outline the best strategies to selling an inherited house while making most of the investment that was left behind to you.
Benefits of Selling an Inherited House
Beneficiaries of an inherited home can take advantage of a Stepped Up Basis when selling a house. On typical home sales, proceeds are calculated by the difference between the sales price and the purchase price plus repairs. However, while selling an inherited home proceeds are determined by calculating the difference between
Selling an inherited house can help to avoid conflict with family members. Maintaining a home that is co-owned between multiple parties can cause ongoing conflict. Selling the house and splitting the proceeds as outlined in a will can reduce the amount of tension and fights amongst family members.
Tax Implications of Selling an Inherited House
Not Eligible for Tax Exclusion.
Homeowners who have lived in a home for at least 2 out of 5 years owning a property are eligible to avoid paying taxing on properties. Single persons can avoid up to $250,000 in taxes and married couples can avoid up to $500,000. Unfortunately when you are inheriting a property you do not meet this tax exclusion and you will be subject to a capital gains tax unless you’ve lived in the inherited home for at least two years.
Reporting the Sale the to IRS.
The Internal Revenue Service requires homeowners to report the sale proceeds of an inherited home as taxable income. The amount of money that is taxable depends on a number of factors including fair market value of the home and improvements done to the property. Be sure to file the appropriate forms with the IRS to report the sale of a property no matter what your obligation is on a property.
Understand the Difference Between Inherited Tax and an Estate Tax.
Depending on the state you live in, there are different laws surrounding the type of tax you need to pay on an inherited property. Seek out the help of a tax professional to understand the financial responsibilities of inheriting a house in your local area.
Strategies for Sell an Inherited House
For Sale By Owner
Many homeowners opt to sell a house themselves to avoid the commissions and fees associated with using a realtor. However, home owners see less of a profit on average when compared to homes sold by realtors. Selling a house yourself always requires a huge time investment that you may not be able to commit to on top of your current responsibilities.
List With a Realtor
Many homeowners of newly inherited homes decide to list their inherited property with a real estate agent. While this may be the traditional means of selling a house, it does have certain disadvantages. Realtors may recommend thousands of repairs, upgrades and staging to get the house ready for the market. Additionally it takes several months at best to sell a property this way. At the time of closing you are responsible for thousands of dollars in realtor commissions as well.
Sell to Real Estate Investors
Selling to real estate investors allows homeowners to sell the house quickly without having to pay for the commissions and fees associated with a realtor. You won’t have to put money into landscaping or updating the house to get it market ready. Simply go through the house and keep or sell items of value to you and leave the rest for the cash investor. Investors will buy the home as is and make the process as simple as possible for you.
Advantages of Selling an Inherited House to Investors:
Most beneficiaries of inherited homes do not have the time to invest into selling a home. They are looking to turn a profit of the house quickly and remove the responsibility of maintaining the home as soon as possible. Selling to an all cash buyer and investor can help home owners to sell the house much quicker.
Real estate investors purchasing with cash buy the property as is. Typically inherited homes have big problems lurking. As your loved one aged they likely did not keep up with the maintenance of property. This can mean there are serious issues such as outdated heating and cooling systems, structural issues, or water damage. Most potential homebuyers would stray away from properties like this. Here at House Cash Now our real estate professionals do market research and offer you a fair offer and purchase the property as is. No need to worry about an inspection killing the deal.
Many times inherited homes are outdated and need a significant investment to get the property ready to sell. Additionally, you are responsible for paying property taxes and insurance on the property until it is sold. Working with real estate investors at House Cash Now will save you months or years of paying to maintain the property. Furthermore, you won’t need to invest thousands of dollars into making a property appear to be turnkey. We’ll purchase the property in its current condition for a fair price saving you time, money and headaches.
Selling an inherited home allows you to make the most out of your investment without investing a lot of time and money into it. Turn your family’s members old and outdated home into a pile of cash in your bank account. Utilizing the expertise of our real estate professionals will have you closing in 7 days and walking away from the responsibility of an inherited house. Contact House Cash Now with the property details and we’ll get back to you quickly with a fair market price cash offer.