Five Tips for Selling an Inherited House in the Twin Cities
Inheriting a house or property can be an emotional experience. It can also be difficult to understand how 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 fash 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’s what 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 home 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 inherited the property with to determine who is going to 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 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. 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, determining what should be sold, what should be donated, and what should be thrown away or recycled.
After going through the home and clearing everything out, you’ll need to hold an estate sale or garage sale. Hiring a professional estate sale 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 home repairs you’ll need to complete before selling the property.
5. 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.