I want to sell an inherited home, where do I start?
After you inherited a home, most people will likely assume that you are happy about it. However, you may not be happy with the prospect of having a second home to manage and pay taxes on. Selling an inherited home is more difficult than selling it when the owner is still alive. However, you can still sell the house without any issues. After you’ve decided to sell an inherited home, you’ll need to perform the following actions.
Going Through The Probate Process
Before you can sell a house you inherited you don’t want, it has to go through your state’s probate process. After the property goes through the probate process, the court will authorize you to act in any way you wish. If you are the will executor and some of your relatives share in the inheritance of the home, you need to get their permission and that of the court to sell it.
Agree to Sell Inherited Home
Once everyone engaged in the inheritance agrees to sell the house, then you can file a petition with the court asking for permission to sell it and then proceed. The inherited house that you need to sell may require repairs or remodeling. And then you can advertise it on the market for sale. You can hire a home inspector after taking out your loved one’s belongings. What he does is to see if there are any areas that need repairs.
If you reside far away from the house, you can contact a real estate agent who lives close to the home and ask them to assess it on your behalf and provide you with suggestions about repairs and improvements that can make it more appealing and marketable. Such changes can include adding landscaping or remodeling a kitchen or bathroom or maybe a new roof among other things. You may also choose to sell the property “as-is” even if it means that you will sell it at a lower price than you would have if you made all the repairs and improvements.
Consider The Taxes You Will Pay
If you choose to sell an inherited home, the tax basis for the home is the value it had on the date your parents who drafted the will passed on. The difference between this value and the sale proceeds you get after selling the house is the gain on which you will pay taxes. However, if you sell the house for an amount less than or the same as the value it had on the date your parents named you as the beneficiary, you will not pay taxes.
Selling An Inherited House That Is Held In A Trust
If the inherited house you need to sell is held in a trust, you need to work with the trustee in order to sell it. You can sell such a home in two ways. One of them is allowing the trustee to conduct the sale so that the trust owns the proceeds. The other option is asking the trustee to transfer the title of the house to your name so that you can sell the house yourself. Since trusts are governed by complex legal documents, you must consult a lawyer to review your trust before you begin the process of selling the property to determine which process is best for you.
Steps to take when selling a house with the trustee:
- Examine the trust paperwork carefully to see if the trustee has the authority to sell the property. The trust document includes the provision that grants a trustee the power to sell. If power is not explicitly granted to the trustee, a court may conclude that the power is implied.
- Request the trustee to hire the services of a real estate agent. This professional will visit the property and also look at the trust documents to confirm that you can sell the property. He or she will also consider if the trustee has the power to conduct the sale.
- Provide the title firm with proof that the trust is valid and that the trust document identifies the trustee. The title company may also ask you to provide it with a Certification of Trust signed by a trust attorney, a tax ID number, and the death certificate of the person who created the trust.
- Close a buying agreement with the person who has agreed to buy the property. The trustee has to sign this agreement. The monies from the sale become the assets of the trust. The trustee can either transfer them to you or leave the funds in a trust account.
Steps to follow when selling a house without the trustee:
- Read the trust documents to make sure that no provisions that can keep the trustee from transferring the title of the house to you exist. If there are no restrictions, the trustee can transfer the property to you.
- Request the trustee to transfer the property’s title to your name.
- Transfer the deed of trust for the property into your name with the trustee’s cooperation. The trustee must prepare a document to transfer the property from the trust to you. The trustee will file this deed with the local property office to make it official.
- Hire the services of a real estate agent to sell the house. The sale proceeds will be yours because you hold the title to the home.
In Summary
Selling an inherited home may require a lot of processes but it does mean that it’s impossible to sell it. You can also sell your inherited home directly to an investor. This is could the best option!
Real estate investors will take care of all the details and ensure you get your money quickly. To sell your house in this way, you can always reach out to local house buyers like TMC Property Solutions at www.WeBuyHomesInProbate.com. We purchase houses fast for cash all around Dallas Fort Worth at fair prices. You can sell your house fast and move on with your life. The loved one who willed you the house would not want to have any hassles, so you should take advantage of this win-win situation.
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