When someone in your family passes away it can be one of the most trying moments of your life. With this loss can come with some heavy responsibilities in the form of an inherited house.
If you’ve inherited a house in the event of a death, there are lots of things to take into account. As the estate’s benefactor, you’re presented with two options regarding what you could do with the house— keep it or sell it.
What Do I Need to Do Before I Move into the House?
Before you move right in, think about all the costs associated with an inherited property. How much equity is in the home? Was the mortgage paid off? What type of property taxes are in the area? What condition is it in? If you decide to move into the house, you must repair it before the home can be insured. Unfortunately, this bill will be left for you to take care of.
If the mortgage has not been paid off, it could result in forcing you to pay a higher payment than your budget allows. Before you decide, figure out what sort of payments you’ll have to pay on the home and whether or not you can afford it.
Am I Able to Sell the House That I Inherited?
It is common for the property’s benefactors to decide on selling the home and splitting the profit amongst them. While it’s likely this is the easiest option, it doesn’t come without costs of its own.
Aside from any repairs, heating and electricity, insurance, and property taxes must be paid even if no one is living in the home. In order to ensure the house will sell, general upkeep including yard work must be sustained, and therefore cost you time and money.
Also remember, if you sell the house using a real estate agent, it is not free. In fact, it is typical for a realtor to charge 6 percent of the sale for a commission fee. It can end up being extremely expensive considering a realtor cannot guarantee the house will sell quickly.
Recognize Your Limits When Selling an Inherited House
Inheriting a house often means the loss of a loved one. That makes it easy to accept an obligation that turns out to be much more than you originally anticipated. Along with the house, you might also inherit:
- Property and capital gains tax matters and the potential for inheritance tax
- Legal issues, such as unpaid condominium fees
- Transferring the title, which can be a real pitfall if multiple beneficiaries are involved
One couple who inherited a house were surprised to learn that a second mortgage had been taken out on it. The amount owed on the second mortgage, for which they were on the hook? A whopping $30,000.
Experts say that getting over the loss of a loved one is a process that could take as long as several years. That’s quite a load to bear. Be honest with yourself as to whether you have the time and emotional capacity to add a new property on top of that.
Reach an Agreement with Relatives Who Also Inherited the House
Generally speaking, inheriting a house opens up one of three options: selling it, moving into it, or renting it. Each option can become exponentially more difficult if other beneficiaries take exception to any possible plans of action.
One reason is the historical shift occurring around us. Approximately $30 trillion of wealth is set to be inherited in the next 30 years. That’s a lot of money and a potential bombshell for family members to address.
But it doesn’t have to be that way. Hostility around estate matters can be resolved with an estate plan created while one or both parents are still alive. Even a family-only auction of sentimental items that are difficult to appraise financially can help.
Inheritance conflicts, wrapped around the pain and loss brought on by the death of a loved one, can poison a family for years. Reaching an agreement with other beneficiaries is the only antidote.
Your Inherited Property Will Be Sold Fast with Homego.
There is a solution to all these inconvenient costs, and you could still quickly sell the house you inherited. HomeGo will work with you to give you the highest possible cash offer for your property. Better yet, HomeGo will buy your inherited house as-is— no repairs necessary.
This alone will save valuable time and money. On the same note, HomeGo will keep your busy schedule in mind and work hard to close the sale of your home in just seven days. The sale is completed faster than a traditional real estate agent could deliver and HomeGo doesn’t even charge for any commissions.
See your offer in just 3 easy steps:
- Enter your address and get a real cash offer.
- Schedule your 10-minute walk-through.
- A HomeGo agent will come to you to finalize the sale details.
HomeGo is ready to approach your situation with care.