Inheriting a property from a loved one can bring with it a lot of complicated emotions and decisions.
Do you keep it in the family or sell it? If you choose the latter, there are a number of factors to consider before moving forward.
If the property is in probate, there will be a legal proceeding to determine how assets of the estate are handled — and that could take a while. If not, you may be able to move forward with listing the home.
Beyond that, you should also take into account:
- Potential Taxes: When you sell a property, you’ll typically owe capital gains taxes unless you’re immediately reinvesting the money in a similar investment. Depending on the state where you’re located and where the property is, you may also owe estate taxes.
- Remaining Loans: Do any loans exist against the property? This might mean traditional mortgage loans, home equity loans, HELOCs or reverse mortgages. Any of these will likely lead to forfeiting a portion of your sale proceeds to a lender.
- Belongings in the Home: If your loved one left behind a lot of belongings (and no plan for them), you’ll need to sort out how to handle them. Will you divide them among family members, host an estate sale or donate them to a local charity?
- Repairs and Renovations: Take the home’s condition into consideration. If it’s in disrepair or has not been properly maintained, you may need to invest some money in updates before listing it. Consider having a home inspection done to gauge the home’s condition.
Get in touch if you have questions or need help handling a property sale.
