This situation arises more often than you might think: a family member passes away, and you inherit their home. You might even be the executor of a state which includes a home.
Either way, this is a heavy burden to bear after the tragic passing of a loved one. While sometimes the person who gains the property gladly assumes this role, the beneficiaries of the home might inherit problems along with the house.
Why should you sell your inherited home?
Sometimes the home could be mortgaged, which means the person who inherited the house will be responsible for mortgage payments. If you already own your own home, this could cause you to be faced with two house payments suddenly.
Even if the house is owned free and clear of a mortgage payment, the inheriting party might now face having to make two insurance payments and two tax payments.
It is not uncommon for family members to inherit properties in a different city or state. This can result in loved ones dealing with both their grief and the added stress of suddenly needing to clear out and sell a home as soon as possible. Plus, if the house was left in a state of disrepair, this adds to the new homeowner's headache.
Selling your inherited home in 5 steps
Whether you cannot bear the financial burden of another mortgage or live in another city and do not wish to relocate to live in the newly acquired home, selling the property might be the best option for many who find themselves in this position.
Step 1: Consider all factors
Thinking of selling your inherited house? Consider these three critical factors:
- The financial and legal responsibilities of the inherited property, including debt obligations
- The tax liabilities of the inherited home, including federal estate taxes or capital gains
- What you will do with the house: Will you move into it, rent it out, or sell it?
Step 2: Property title
When taking the first steps to sell your inherited home, it is crucial to partner with a reputable title company. To sell the property, you will need a clear title that is insurable by a title company.
In the case of the deceased party, the company will perform preliminary research. This step can also be done free of charge as part of a purchase and sales agreement between a buyer and seller during the escrow process. Once you know more about the details of the title and what you need to address for it to be considered clear, you can work together with the title company and your attorney to resolve any critical issues.
Step 3: Assess the condition of the property
An inherited property's condition often impacts what people decide to do with it.
If the property is damaged or outdated, it could require expensive and time-consuming repairs. Especially if you live in a different city or state, coordinating a renovation of an inherited home is a big task.
Only you can decide if you would be better off keeping the house or selling it.
Also, as is the case with homeownership, keep in mind that the repairs do not end after fixing initial issues. Not only will you be responsible for maintaining the property on an ongoing basis, but you will also pay the property taxes and insurance.
Additionally, the new owners are now responsible for paying taxes, insuring the property, and maintaining it regularly.
If you inherited the home in pristine condition or are emotionally attached, renovating the house for keeps might be worth it. However, these responsibilities are too much for some, and it may be easier to sell the property as-is.
Step 4: Put the house on the market
As difficult as it may be, sometimes the best option is to sell the house. Selling helps ease the burden by providing cash immediately and removing legal and financial responsibility related to owning the property.
While you may be able to sell the house for a profit, you need to take into account the costs associated with listing the home on the market, which can include:
- Any outstanding financial obligations, such as unresolved mortgage debt
- The cost to fix up the house to get it ready to sell for top dollar
- Closing costs and fees
- Realtor commissions (link to Selling Your Home With a Realtor vs. Selling to Simply)
Selling your inherited home to a cash buyer is the best option
If you have lost a loved one, you are already dealing with enough stress. Especially if the inherited property needs serious TLC, selling the home as-is could be the right route for you.
Putting your home on the market with a real estate agent can be time-consuming and costly, but there is a better way: sell your house to Simply off the market, as-is, receiving a top-dollar cash offer.
When you partner with Simply, you can skip the headache of renovations. Selling your home to us also means you do not have to deal with showings, inspections, or negotiations. Plus, no hidden fees!
Simply guarantees straightforward, compassionate service
If you are considering selling your inherited home, let us help you make an informed decision. We deal with inherited property cases daily and would love the opportunity to point you in the right direction.
Take the first step today! You could receive your free, no-obligation offer online within 30 seconds. All you have to do is enter your address, and we will let you know if we are interested in your property. After losing a loved one, we know you are facing times, but you can count on Simply to be with you every step of the way.