Aug 18, 2020
If you are living in an inherited home, you have the option of selling it if you do not want to rent it out or move in. However, there are financial implications like federal tax, utility bills, real estate agent commission, and attorney fees that can add up in the sale of inherited property. When planning to sell an inherited property, there are certain things that you should know to avoid pitfalls and other obstacles that can affect the entire process. As such, read on to learn how to legally prepare your inherited property for sale.
Hire A Real Estate Agent
When you decide to sell an inherited home, it is a good idea to start with finding a professional real estate agent with experience in dealing with such cases. The main advantage of hiring a real estate agent is that they can do all the work while you relax, and they know how to handle different issues that may be involved. For instance, an estate agent can track down if there are no mortgages owed to the creditors. There may also be outstanding money owed in the form of taxes, unpaid bills, and other expenses that should be settled first before the sale is approved. Therefore, a real estate agent is better positioned to know all the complexities and variables that are involved in selling an inherited house so that you can get the best deal.
Hire A Qualified Real Estate Planning Attorney
Like any other form of real estate business, you need to get proper legal advice before you sell your inherited property. It can be a harrowing experience to sell your loved one’s property, especially if they did not leave a will or trust. In some cases, there may be just a will and a trust that is not properly funded. In such a situation, a probate process is required and this is when the services of an experienced attorney can come in handy. A professional estate planning attorney can help with planning your estate so that you can have peace of mind while you focus on other pertinent issues in your life. If you have a role as an executor of the deceased’s assets but there is no will, probate becomes a necessity and it is filed through the probate court.
When the probate process begins, all the potential heirs and creditors are notified. The hearing is published in the local paper to notify all the concerned parties about the beginning of a probate process. You need legal counsel so that you can understand the complexities involved in the process. You can schedule a free consultation to get all details about the probate process and to avoid misunderstandings with other interested parties at a later stage.
What Are The Tax Implications
It is essential to understand the complex details of tax laws that are involved in the sale of inherited property. Such taxes vary from state to state and you should consult your real estate agent or consultant if you want to learn about how different taxes can affect the sale of your inherited house. Some taxes can be of great benefit, while others can impact the sale of the property and the ultimate profit that you can get.
Prepare The House For Sale
When you are satisfied with the legal obligations that you are going to meet when selling inherited property, you should then prepare the house for sale. Like any other property, you need to remove belongings and clear clutter for inspection. You can also consider making some upgrades to the property so that it can be valued at a better price. When the property goes through probate, with the assistance of your real estate agent, you can work on modalities like pricing the property. There are many factors that you should consider when you price your property. You need to set a reasonable asking price for the inherited home as determined by the market forces, but you should also avoid deterring potential buyers from the property. You should also avoid too many concessions during the negotiation of the price of your inherited property.
As you have observed, selling an inherited house can never be labeled as easy or difficult since you only need to know the legal processes involved. It is crucial to hire a professional real estate agent who can lead you in the proceedings. On top of that, you also need a professional estate planning attorney to assist with aspects like the probate process if there is no will or trust left by the deceased. Selling a home can be tricky, but with the help of an attorney and a real estate agent, the process can be quicker. All the same, you should prepare the house for sale to give a lasting impression on potential buyers once all the legal processes have been met.