Selling an inherited house can be complicated. We’re not lawyers, but we’ve walked a lot of families through this process and we understand the decisions to be made. Here are some key issues to consider when selling an inherited house:
The probate process:
Even if you’re familiar with probate, it’s helpful to get a baseline on how it all works. According to the American Bar Association, “probate is the formal legal process that gives recognition to a will and appoints the executor or personal representative who will administer the estate and distribute assets to the intended beneficiaries.” Probate laws vary by state, but most houses will go through the probate process unless a living trust has been set up. Probate can be very simple and quick when there’s a valid, clear will, but it can also be slow and complicated in some cases.
Reaching agreement:
Sometimes, only one person is named to inherit the house. If this is you, you can make whatever decision you want about the house.
Sometimes, though, there are multiple beneficiaries. This can make the decision-making process more complicated; the beneficiaries may be split on selling or keeping the home. When this happens, it’s helpful to get a cash offer on the home so that everyone knows what the sale of the house would bring.
If beneficiaries are unable to agree, you may decide to bring in a mediator. Ideally, you want to avoid taking the conflict to court.
Capital gains taxes:
Selling an inherited house can trigger tax requirements. This is only the case if the home is sold for a profit according to its fair market value from when you inherit the house to when you sell it, according to the IRS. Any profit you receive over the fair market value is taxed. For example, if the home is worth $100,000 and you sell it for $125,000, you would likely pay capital gains tax on the $25,000 gain.
If you sell an inherited home soon after inheriting it in as-is condition, you’re less likely to have to pay capital gains taxes as you’re not raising the fair market value by making improvements.
A real estate lawyer can explain your exact tax situation to you.
Prepping an inherited home for sale:
Remember that you didn’t only inherit a house; you also inherited everything inside. When it comes time to clear out the house, loved ones will likely want to remove sentimental items first. After that’s done, you may want to organize an estate sale and later donate what you can’t sell.
You may need to do significant prep before the home can be sold, even once it’s emptied out. It’ll need a deep clean, fresh paint, and possibly some updating. Older or dated homes may also need significant repairs. Selling an inherited house can require some elbow grease, or for the new owners to shell out some cash to ready it for the market.
Bottom Line:
If you need to sell an inherited house, working with MarketPro Homebuyers can simplify things. You can save time and money by selling as-is, with no commissions or closing fees. You can even leave anything that doesn’t have sentimental value in the house. Everyone involved can get their portion of the inheritance quickly, while minimizing stress and conflict.
We have helped many families through this process, and we’d love to help yours.
Work with MarketPro:
We’ll give you a fast cash offer for your inherited house just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what the inherited house would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.
