An inherited home can be a blessing for some and a source of inconvenience for others. Once you’ve figured out the financial implications of selling your inherited home, you may decide that putting it on the market is the best choice. Even so, many homeowners find themselves in a holding pattern. The market may not be that great for selling. Family members may have disagreements regarding the sale. The emotional connection to the home may be holding you back.
If you’ve inherited a house and are thinking about selling, here are a few reasons why you may want to sell sooner than later:
The Cost of Regular Maintenance
Whether it is cleaning the interior, mowing the lawn, or shoveling snow, all homes need ongoing maintenance. The longer you wait to sell, the more money and time you will spend keeping the home maintained. Keeping up with home maintenance can be especially burdensome if you don’t live near the house, and getting reliable and trustworthy help can be a challenge.
Home Insurance Policy Costs
The original homeowners insurance policy for an inherited home is nontransferable. That means that the estate or new owner must arrange for a new home insurance policy. If you have inherited a house, this can be an inconvenient and unwanted expense. The national average for home insurance is $1173 a year.
Cost of Utilities
While the home is vacant, you still may have to pay for water, gas, electricity, heating and cooling. If the home has pest control or a security system, this may add up costs as well. There also may be a home warranty on major appliances and property taxes. All these costs can equate to thousands of dollars of out of pocket expenses each year.
If you are not living near your inherited home, you won’t be able to quickly take care of issues related to plumbing, storm damage, or theft. Unexpected emergencies can be costly, as well as traveling to the home if you are out of town.
Getting Rid of the Rental
Perhaps you are currently renting an inherited property to avoid the hassle of selling. You may also be trying to avoid the 25 percent recapture tax on the depreciation you claimed. Here is some great news – as long as you reinvest the proceeds of the sale into another real estate investment, you can structure the transaction as a 1031 exchange and avoid recapture tax. Do you have your eye on a retirement home or a starter house for your child? This might be a good time to sell your inherited home.
- We will sell your home with no commissions or fees
- You won’t have to deal with the cost of preparing the home for sale (we will buy your house as-is)
- No appraisal is needed
- You will get an immediate cash offer
Find out more about how we can save you money and expedite the sale of your inherited home. Give us a call at 301-994-SELL or contact us today.