5 Reasons to Sell Your Inherited House Quickly
Inheriting a house can come with a mix of emotions. An inherited home can be a valuable asset for you and your family, but you also have to be prepared to make a number of challenging financial decisions. In the wake of a loved one's passing, these decisions can be overwhelming, but eventually you’ll have to decide what to do with your inherited house.
You have three main options: sell it, move into it, or rent it out. Of the three options, the best and simplest option is typically to sell the house and split the proceeds with the heirs.
1. Houses sitting empty are costly.
Even a "free" house can still be costly. A house sitting empty creates mounting costs and ongoing expenses. Property taxes, homeowners insurance, utilities, maintenance, and general wear and tear may make a huge dent in your finances. If the house is not being lived in, it will slowly deteriorate over time, resulting in what could be a substantial drop in the home’s value.
2. Rental properties take a lot of time and effort.
If more than one person is an heir to the house, you're probably not going to live in it together. That really leaves you with two options: sell it or rent it out. However, it’s important to think twice before turning the home into a rental. Becoming a landlord can be costly and time-consuming, and it shouldn’t be treated as a hobby—it’s a business. You should consider the downsides of owning a rental property to determine whether or not you’re cut out for it long term.
3. Inherited houses are typically in disrepair.
Most inherited homes are in fairly bad shape because many times the homeowners were elderly, ill, or just unable to provide proper maintenance. The beneficiaries will be responsible for all the necessary repairs before either living in it, renting it, or selling it. Repairs are costly, even if everything goes right AND you have a good contractor that you can trust.
4. Probate is time consuming and expensive.
When a person passes away, his or her property is put into a court process called probate. Probate is a legal proceeding used to settle a person’s estate after death that can be complicated, time-consuming, and expensive. It often creates a complex nightmare of legal and financial problems, and it can be overwhelming for families to deal with the loss of a loved one while meeting with lawyers, accountants, funerary services, and more.
5. Capitalize on massive tax breaks.
If you sell the house quickly after inheriting it, even if it significantly increased in value since the deceased purchased it, you won't pay capital gains tax. The property's tax basis is brought to current market value at the time of the previous owner’s death. That means you inherit the house at the fair market value at the date of death. When you sell the property, any tax you owe is based only on the increase in value while the house is in your hands.
Inheritances can be filled with emotional consequences, as well as financial ones. Many families cannot handle the stress that comes with cleaning out inherited property, so they end up doing nothing, which can be costly. Don’t let your inherited house cost you money or cause you stress!
Avoid all the hassles and sell your house.
You may not have the funds, time, or interest to fix your inherited house for sale or for rent. Perhaps you would prefer cash rather than the responsibility of caring for the property. Whether you are in probate or serving as executor of an estate, we will buy your house regardless of condition and help you ease the burden of inheriting a house.
Let us show you how easy selling your inherited house can be!