People will often look at the joy when it comes to inheriting a home and forget what it takes to handle it. Inheriting a real estate property can be harder than most people will see. They normally come to realize it when they think of getting the inherited property to the market and financing is a problem. Payments must be made on a financed property by the owner as agreed with the lender or the property risk having foreclosure as a problem to deal with. Some properties must go on probate before actually being inherited by someone. When a property is at this state, it is at risk of being liquidated to settle some taxes or unpaid debts accumulated by its former owner.
Having your home at a similar condition means you’ll obviously have some difficulties in getting it sold. Depending on your relationship to the deceased and the property’s value, you might be needed to pay inheritance tax on the property. What you do with the property before the sale will determine the amount of Capital Gains Tax you’ll have to pay.
Being able to achieve a successful sale on an inherited property isn’t something that can be achieved when working with a real estate agent as the property will normally take longer to close on the market and it will be highly influenced by the current state of the local market. The use of property buying companies is becoming more popular for homeowners as they can successfully sell their inherited properties in less than a week. There will normally be some additional financial cost when trying to sell an inherited home, some of these costs include the preparation for getting the home sold, giving the property an attractive look to buyers including activities like cleaning and redecoration costs or making outstanding mortgage or insurance payments.
The following factors can be considered to get your inherited home sold:
- Find a Will: In order for the buyer to confirm your inheritance to the property, you’ll need to provide a will. The will is a legal document outlining how the deceased would like to slip their properties.
- Apply for Probate: Applying for probate can help you get legal permission from court to take over as the will executor. In case there’s no will, you’ll need to get a ‘grant permission’ at a local Probate Register. This document will give you the ability to act on behalf of the deceased.
- Get Inheritance Taxes Settled: This is a one-time tax that is due on the total value of an inherited estate when they die. The amount of this tax will depend on the total value of the inherited estate and who inherits it.
- Capital gains tax: When an inherited property is sold, there is a capital gains tax on the inherited property which is determined by the profit you make when the asset has increased in value and you sell it.
Please reach out with any questions! We are here to help.
