How to Sell an Inherited House
Inheriting a house can seem like a blessing to some, and a curse to others. While a few people may view the inherited property as a financial gain, the others will see it as a burden. Unless you plan on moving into the house or using it as a summer home (talk about financial burden), then the ideal scenario would be to sell it.
Knowing how to sell an inherited house is as important to the process as having the house to sell. Selling an inherited home isn’t the same as selling your own, and there are few key things you should know.
There are special tax implications
When you sell your own home that you’ve lived in for at least the past two years, you are able to benefit from a tax exclusion. That means you (and your spouse, if applicable) can receive an untaxed profit from the sale of your house, up to a certain amount. However, unless you plan to live in your newly inherited home for a minimum of two years, then you won’t be able to take advantage of a tax exclusion. You will be eligible for the stepped-up tax basis, which essentially means the tax basis is the fair market value of the home at the time of the previous owner’s passing. There are many other tax implications involved with understanding how to sell an inherited house, so you may benefit from consulting with a professional.
Consider an investor
If you thought owning the home would be a financial burden, then wait until you factor in all of the costs of selling. In the event of inherited property, it could be extremely beneficial to talk to real estate investors rather than putting it up on the market. Not only are you utilizing short sale solutions and getting to cash out on real estate that you didn’t want, but investors will often let you consider selling a home as is. That means you don’t have to put any more financial burdens on yourself by making the house look more desirable for potential buyers.
The average home was sold within four weeks of its appearance on the market in 2014. While that may seem quick to you, a lot can happen in four weeks. Especially concerning a house that you didn’t expect to have. While there are certain things you’ll need to figure out to learn how to sell an inherited house, the best (and easiest) thing you can do is sell it quickly.
Have you recently inherited a house that you cannot afford, and don’t have the means to put on the market? Give us a call today.