8 Tips for Selling an Inherited House in the Twin Cities
Inheriting a house or property can be an emotional experience. It can also be challenging to navigate issues like tax law and real estate sales, especially if you’re not really clear on all of your options or which one is best for you.
Unless you plan to live in the home or keep it in your family, you’re most likely looking for ways to convert that property into cash you can invest in your future. At Bill Buys Houses, we frequently work with beneficiaries looking to translate their windfalls into cash they can use.
In this post, we’ve put together tips to help you sell your inherited house fast. To connect with our cash home buyers and turn your property into fast cash, give us a call today.
1. Get an Online Property Value Estimate
Before you do anything else, you need to understand how much your property is worth. To get a basic ballpark figure of the home’s current value, there are a few things you can do.
Looking on websites like Zillow should give you a solid idea of how much homes in the immediate area are worth and selling for, but it’s not a guarantee that you can expect to ask and get. Factors like the current local and national housing markets and the condition of the home will all play a role.
You’ll also need to find out if there’s a mortgage on the house, which company holds the mortgage loan, and how much is still owed. From there, you can use a home sale calculator to help you estimate how much you could make from selling the home.
2. Calculate Additional Factors Affecting the Sale
Once you’ve established how much the property is worth, you’ll also need to look at any other bills that will need to be paid from the sale of the home. This can include things like back property taxes and contractor liens against the home. You’ll need to make sure the house has a clear title and make a list of anything that needs to be handled before you can sell the home.
Additionally, you’ll need to work with anyone else you’re inheriting the property with to determine who will handle these additional responsibilities and who will manage the sale. Make sure everyone involved in the process understands what financial obligations are at play and how the proceeds will be split after the sale is complete.
3. Understand How Tax Law Applies
There are a few things to consider on the tax law side of things when you’re selling an inherited property. You’ll need to look at any taxes you’ll be obligated to pay on the sale. These laws can vary from one state to the next and can usually be located on your state tax commission website.
Although there is a tax exclusion for up to $250,000 of a single homeowner home or $500,000 for a married couple, this is only applicable if you plan to live in the home for two years or longer. Property tax for the home should be calculated based on the fair market value at the time of the last owner’s death, which means you shouldn’t be hit with a hefty sum based on appreciation since that time. However, what you owe may change if you end up owning the house for some time before you finish the sale.
Remember that the sale of an inherited property must be reported to the IRS as taxable income. Tax laws can change over time, so it’s a good idea to ask your tax advisor if you have questions.
4.Check with Any Potential Executors
Another essential action is checking with anyone who may be authorized to help in the disposal of the home. This may mean appointing a trusted real estate firm or anyone who can execute the sale of the assets legally. The executors will hold any legal responsibility to ensure that all the transactions are correctly performed in the sale of the property, and it's their role to make sure the assets are distributed evenly, including the sale.
5.Get a Mediator if Needed
Depending on the situation, disputes can arise within families around the property and any involved estates or trusts. Once a matriarch or patriarch has passed away, it can create a complicated situation when the adult children are often left to sort out the remaining assets. A mediator can help alleviate some of the stress that comes with this. They can help find the individuals involved in a satisfactory agreement by exploring all the available options. Having this extra support in the process can reduce stress while you are preparing to sell your house.
6.Update Any Insurance
Another consideration is making sure that you have homeowners' insurance covering the property until it sells. If any renovations need to be done and someone is injured on the property (or if it is sustained damage from natural occurrences like a storm), it could be costly.
Ensuring the property will give you peace of mind knowing that if any mishaps happen, you will have support, but it can also help save you money if there are any damages or problems that arise. In addition, if you are a surviving spouse and you are already on the policy, you don't need to worry about adding one on. But if this is not the case and you are not listed on the documents, you may need to open a new policy until the property is sold.
7. Hire Help Preparing the Home for Sale
Like any home, you’ll need to invest some time, elbow grease, and possibly money into getting the property ready for sale. First, you’ll need to remove any personal property belonging to the previous owner.
Going through a loved one’s property can be an emotional experience, and it can be difficult to know what to keep. You may even experience feelings of grief or guilt as you emotionally and physically interact with their belongings. Start by choosing items that you wish to keep in memory of your loved one and anything you don’t want to part with. Next, you’ll need to sort through what’s left over, determine what should be sold or donated, and thrown away or recycled.
After going through the home and clearing everything out, you’ll need to hold an estate or garage sale. Hiring a professional estate sales team can alleviate the pressure of this crucial stage in the process. You’ll also need to either clean the home yourself or hire someone to professionally clean it in preparation for sale. You’ll also need to prepare the home’s exterior and lawn. Finally, have the home inspected for any repairs you’ll need to complete before selling the property.
8. Find a Cash Home Buyer
Once you’ve prepared the home for sale and worked out all of the pertinent legal issues associated with an inherited property sale, you’ll need to start looking for buyers. If you go the traditional route, you’ll need to hire a real estate agent to handle the process. Unfortunately, many beneficiaries find this process can be lengthy and uncertain.
If you’re looking for a faster solution, go with a cash home buyer from Bill Buys Houses. At Bill Buyers Houses, we’ll buy your inherited property in any condition, which means you won’t have to worry about hiring a team to prepare the property for sale or invest in costly repairs before listing the home.
Because we work with a team of cash home buyers, we can put cash in your hand in as little as a week. Simply give us a call to schedule your walkthrough, and we’ll take care of the rest so you can focus on investing your windfall.
Call to Sell an Inherited House Fast in Minnesota
If going through the home sale process on an inherited house is in your future, we’ve got you covered at Bill Buys Houses. When you’re ready to get cash from an inherited home within a week, contact us or call to request an offer at 651-270-9191.