Selling a house you inherited can be an emotional decision; help from friends, family and experts make a stressful situation easier to handle. From financial obligations to potential obstacles during the sale, there are many things to consider.
Begin the process of selling your inherited home by ensuring the mortgage, utility bills and property taxes have been transferred to your name. All payments and maintenance must continue to be paid until the house is sold to avoid any negative effects on your credit. Many homes that have been inherited need to be thoroughly cleaned out or require costly repairs such as broken pipes, rotting structure or cracked walls. To save you the most time, energy and money, sell to an investor like Dignity Properties. Dignity Properties will purchase your home as-is, without requiring a property inspection, expensive updates or having to go through the emotional process of tossing out old items.
Although inheriting a piece of property in Tennessee does not automatically trigger any inheritance taxes, there is the capital gains tax to consider. Capital gains tax is the percentage of your profit that is paid to the federal government. The amount is your sale price minus the value of the home at the time of inheritance and the percentage amount is based on your income. There are no tax exclusions specific to inherited property; however if you do any updates to the home, those costs can be deducted from the capital gains tax.
Each individual scenario is unique. In order to make the most informed decisions and avoid complications, it is best to educate yourself by consulting experts in their fields. A tax advisor can provide you with information on different taxes and tax laws involved with inheriting real estate. An estate lawyer helps with probate court and other legal requirements. Another decision to make is whether to sell through a realtor or to an investor. A real estate agent will determine the appropriate listing price and negotiate offers on your behalf, but it could take months to sell and will cost you a commission among other expenses. Homebuyers such as Dignity Properties buys your inherited home quickly with no questions asked and no fees. Knowledgeable, empathetic professionals give you practical advice not based on the emotions you may be feeling during this stressful period. Whether its because of a divorce, trust liquidation or death of a family member, the process of selling an inherited house can take weeks and even months.
Seeking accurate information and the right resources from the very beginning is the key to saving you time, money and energy.