How to Sell Inherited Property
If you were recently named heir to a deceased loved one’s house, the process of acquiring the home and converting it into cash can feel overwhelming. That’s especially true if you’re not the only heir to the property. Selling an inherited home is governed by several laws and requires you to consider the tax implications of the sale. As a whole, the procedure can be complex and quite lengthy, depending on the factors involved.
If you’re considering selling a house you recently inherited, continue reading for a brief breakdown of how to sell inherited property quickly and easily.
Determine How Transfer of Ownership Will Take Place
When ownership of a home changes hands through inheritance, there are three ways your loved one may have set that up. You’ll need to figure out which of the following transfer procedures applies in your case.
Probate
This typically happens when the deceased did not have a legal will. If that’s the case in your situation, the home will go through the probate process, during which the court will determine the best distribution of the deceased’s assets, including the home.
Living Trust
If your loved one had a living trust in which you were named the home heir, the property transfer should be simple and seamless. This legal document details who will manage the sale of the deceased assets so that any named heirs can divide the money made via the sale
Transfer on Death Deed
If your loved one created a transfer on the death deed (beneficiary deed) and named you the heir to the home, the property is yours. You can sell the home in most cases, provided it has a clear title.
Find Out What the Mortgage Looks Like
Does the home still have a mortgage? If so, you’ll be responsible for making mortgage payments as the property’s new owner. If the previous owner was behind, you must bring the mortgage account current as promptly as possible to avoid foreclosure.
You’ll also want to ascertain whether the home has any judgments, tax liens, equity lines of credit, or reverse mortgages attached to it. If it does, the house may not have a clear title, which you’ll need to correct before you can sell it.
Assess Taxes Due on the Sale
When you inherit a home (or any other property, for that matter), it may be subject to estate tax. This tax can be imposed on the net value of the deceased’s estate—which includes the home and any other assets—before the property can be distributed to the heir(s). When you sell the house, it may also be subject to capital gains tax, which taxes the profit on the sale of the home.
However, not every home sale is subject to capital gains tax, and not every inheritance is subject to estate tax. If you’re unfamiliar with how the taxes on the sale of inherited property work, it’s in your best interest to consult with an experienced tax professional who can guide you through the process.
Determine a Personal Representative (and Hire a Mediator, If Necessary)
Are you the named personal representative of the deceased’s estate? If so, you can skip this step. But if you’re not, you and any other heirs must name a representative, or the court will do it for you.
Once named, the representative is responsible for several important duties, including the distribution of assets, paying creditors, and conducting any sales, so be careful who you choose. Understand, too, that disagreements may occur if there are several heirs. If you and the other heirs don’t think you can civilly work out your different viewpoints, it’s probably in your best interest to hire a mediator. This impartial party can help you successfully work through the process.
Distribute Property
If the house still contains all of the deceased’s belongings, you won’t want to sell the home with those things inside it. So if there isn’t a will, and the court is not determining who gets what, you (or the named personal representative) will need to determine how to distribute the property. Whatever you and the other heirs don’t want can be sold in an estate sale.
Prepare the House for Sale
If you plan to list the house on the open market, you’ll need to prepare it for sale as you would any other listing. Clean the home thoroughly and set up an inspection to identify any major issues the home might have. From there, you’ll need to perform any necessary repairs so the house will pass a buyer’s prepurchase inspection.
Sell the House to a Cash Home Buyer
Selling an inherited house on the open market can be arduous, especially if the deceased’s home needs extensive work. If you’re not keen on handling extensive repairs, you may want to consider selling to a cash home buyer rather than listing the house with a realtor.
A cash buyer (a real estate investor) has the cash on hand to purchase the home outright and will offer you fair market value for the home in as-is condition. If you sell to a buyer of this type, you won’t need to perform any repairs, pass an inspection, or even clean the place. All you need to do is request an offer; if you like it, you can sell your house quickly in a matter of days.
Sell Your House Fast in Oklahoma City
If you own an inherited property and would like to sell it as quickly as possible, contact our team at We Buy Houses Oklahoma City to get a no-obligation, all-cash offer for your house! We buy houses in any condition throughout the greater OKC area and do not require you to perform any repairs or complete a prepurchase inspection. If you need to sell your house fast, we can close on the sale in as little as a week.
To get a cash offer for your house or learn more about how our process works, give us a call today at (405) 757-2507 . Or feel free to contact us online to request an offer, and we’ll get in touch right away.