Depending on your circumstances, inheriting a house can be a blessing or a challenge. During a time of bereavement, dealing with finances, paperwork and property can compound stress during an already difficult time. There are many aspects to consider when trying to decide what to do with the home.
Inheriting a home can be more challenging than most people realize. Most individuals cannot afford to take on another home. If the home is paid off, there are insurance and maintenance costs as well as real estate taxes. If the home has a mortgage, the analysis becomes more complex. Although relatives are allowed to keep the existing mortgage, how you plan to use the inherited property (e.g. as a rental) may require you to get a new mortgage or refinance.
Some properties must go through probate before anyone can actually claim it as an inheritance, leaving homes uninhabited and at risk of being liquidated if back taxes are owed or if the deceased had unpaid debts. Here’s a quick guide to help determine if a property must go through probate: http://www.alllaw.com/articles/nolo/wills-trusts/what-assets-go-through-probate.html
It becomes even more complicated if you’ve inherited a family home with siblings or other relatives. Sharing a home with adult siblings doesn’t always work out the way it was intended. Large income disparities between siblings may create conflict as unexpected expenses arise and cannot easily be paid. Compromise can be challenging when negotiating use of the home over desired vacation times. The burden of managing the property is likely to rest on one person. It may be worth preserving family relationships to sell the home quickly.
Besides the financial aspect relating to mortgages and taxes, inheriting a home also means you have inherited all the problems that come with the home. An older home owned by an elderly person might have fallen into various states of disrepair, often because the money necessary to make repairs was lacking or the owner was simply unaware of any problems. Becoming a surprise owner of a house that requires considerable repairs is not something everyone can handle. Selling a house as it is becomes a realistic option if it needs too many repairs.
Due to the favorable step-up basis for tax purposes, your tax exposure may be limited if the sale is made rather quickly. Real estate markets can be volatile, so it may make sense to sell. Owning and maintaining inherited property is not typically a financial goal for many individuals. Using the proceeds from the sale to fund other goals, such as retirement, education, or a bucket list vacation, eliminates the market risk of holding real estate while saving for your other objectives.
Whether there are probate issues, a risk of foreclosure or a home that needs extensive work to make it presentable for a conventional sale, it’s possible to sell your inherited house for cash and avoid repair and renovation nightmares.
Central Development Group, LLC works with new owners of inherited properties no matter a home’s condition. They offer a means to be free of the burden of an inherited home, even if there are past-due taxes, an unpaid mortgage or a need for extensive repairs. Best of all, cash sales are completed much faster than traditional real estate sales.
We’d love to talk to you today about a house and your situation. You won’t get a hard sell. Our customers comment all the time about our soft approach. To hear directly from our customers, visit http://www.centraldevelopmentgroup.com/testimonial/. We’re here to help even if you decide not to sell your house.
Give us a call at 573-442-2727, or fill out the website form to get started. We look forward to talking with you!