Selling an inherited property? Often, people who have inherited property already have a house or live too far away from it and are wondering how to transfer a property deed from a deceased relative.
You might also deal with legal problems before selling the inherited property, or have to consider tax implications.
Let’s remove one source of stress for you right now. When you sell an inherited property you don’t pay income tax on that money. You pay the much lower capital gains tax.
While you should set aside some money to account for taxes, in general, tax concerns should not stop you from selling your inherited home.
You’ll only have to worry about federal and state taxes on the sale of your home once.
However, if you decide to keep the home (by becoming a landlord) then you pay property taxes on the home. Some landlords build that into their rent. However, keep in mind that becoming a landlord does come with its share of headaches.
They won’t necessarily do it because they’re malicious … they just have legal rights.
Sometimes estates get complicated, and when multiple parties all own a share of an inherited asset, selling it may be the only fair way to make sure everyone gets what they’re entitled to.
However, this may mean there are disagreements about which offers to accept, how much money to ask for, and other factors. At Sovereign Home Buyers, we’ve helped families navigate these situations so the sale doesn’t drag on for months (or more.)
Selling a Deceased Parent’s Home
When selling a deceased parent’s home, verify that the executor of the parent’s Will has the power over the real estate. If this isn’t the case, then the other beneficiaries of the estate are able to sell the real estate without the executor’s consent.
If you had a close relationship with the deceased, you’re not just selling your home–you’re selling memories. Selling the home becomes another challenging step in saying goodbye.
Get advice from outside experts and make sure you feel confident with your decisions.
If you inherit a house, you also “inherit” all the costs of maintaining the house – HOA fees, basic maintenance, insurance and any payments owed. Inheriting a house can be a blessing… But it can become a financial drain.
Sit down with your family and evaluate expenses before deciding whether or not a traditional MLS sale is right for you and your family.
How to Transfer a Property Deed From a Deceased Relative
The process for transferring a property deed from a deceased relative varies depending on whether or not the deceased had a Will. Start by using the deceased person’s deed (that shows ownership transferring to them). The deed determines how the property ownership can be transferred depending on their ownership right.
Selling Inherited Property: Another Solution
If you want to sell your inherited house to an investor, do everything you can to investigate the investor’s reputation. Don’t take the first low-ball offer you get and assume it’s the very best an investor can do.
Don’t simply Google “Kansas City real estate investors” and take whatever comes up. Take the time to read reviews and investigate websites.
Call and ask some questions. See who offers advice freely, and who pressures you towards a sale. Look for professionalism, and you’ll gain an ally who will make the process as painless as possible.
Contact us for a free, no-risk quote within 24 hours.
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