Inheriting a house – no matter the situation – can begin a process that is filled with emotion. In addition to receiving a property as the result of a loved one’s death, the financial and legal decisions that come along with inheriting a property can be stressful and confusing for those who have never been in this situation.
It’s important to know what exactly you need to do as a new homeowner and know your options moving forward.
What happens when you inherit a house?
First, you might be wondering: Do you have to pay taxes on an inherited house? The short answer is no. Inheriting a property doesn’t automatically come with any tax liability, but your next steps — what you do with the house – will cause some type of taxes to incur.
Inheriting property from a deceased person’s estate usually happens through a legal process called probate which controls the administration of assets left behind when a person dies, ensuring that the deceased’s wishes are followed.
Every state has its own laws surrounding probate, but in general, an executor is appointed to make sure the ownership of assets in the estate go to the right people.
Once you take ownership of your inherited property, you have several options: Move in, rent it, or sell it. All of these options come with tax implications, whether they are property taxes or capital gains taxes.
Exploring Your Options
Most likely, you already own and live in your own home. So many times, moving into an inherited property doesn’t make sense. Renting out a property can be a lot of work and can be stressful for homeowners, so many people who find themselves with inherited property choose to sell the home.
Option 1: Move In
If you decide to move into an inherited property, you will assume any mortgage payments, HOA fees, repair expenses, and many more expenses that come along with homeownership. You will also accrue property tax payments on your new home.
Option 2: Rent It Out
Renting out a property takes a lot of time and effort in order to prepare the property. You will assume any expenses for repairs and updates, as well as be on the hook for maintenance, finding tenants, and managing the property. Just as if you were moving into the home, you will have to pay property taxes on your rental property.
Option 3: Sell Your Inherited Home
Of all of the options, selling your home can be the easiest if you decide to sell your inherited home to a cash buyer. These buyers work quickly to get the property off your hands, because they understand the situation you are in.
Property buyers like 4th Dimension Development are well-versed in buying inherited properties and take on all responsibilities for repairs, meaning that you don’t have to do much work at all.
Understand Your Goals When Selling Your Inherited House
When you inherit a home, you have several options. Before going through the process of selling the home for cash, sit down and set some goals for yourself and for the process.
When it comes to selling an inherited home, do some research so you know how much to expect for your home, what it’s worth and how much repair may need to be done to it.
Sometimes inherited properties are full of possessions and family heirlooms, especially in estates left to surviving family members. If you’re looking to sell a property that was willed to you, the last thing you want to do is clean up the house or begin the process of clearing out furniture.
Our team takes care of everything for you. So, if your goal is to get rid of a property quickly with the least amount of hassle possible, selling to a cash buyer like 4th Dimension Development might be right for you.
4th Dimension Development can help you with your inherited property
Property inherited from a relative who passed away can be burdensome for the heirs, especially during a hard grief period. The property can easily and quickly be taken care of by 4th Dimension Development.
We are experienced in buying property from those who have inherited it, can answer any questions you have and guide you through the process. Contact us today to get started with selling your inherited property.