Selling Inherited Houses Pueblo Colorado
Sometimes it’s the most detrimental phases of life that throw the most at you.
You gain unexpected and unforeseen responsibilities during a difficult time, such as inheriting a loved one’s property after they pass away.
Not only are you trying to mourn the loss and provide perspective to your family members, you know have legal implications to another home.
You have several options at your disposal when this happens, such as selling the property. However, there are facts you need to understand about the situation before doing so.
Here are things you need to know about selling inherited houses from loved ones.
1. Get the Facts Straight
It’s understandable if your head has been circling nonstop since you heard the news that you were inheriting your deceased loved one’s home.
Maybe they got a chance to give you a heads up before they passed, or maybe they didn’t. Either way, there’s one step that you should always take: viewing the details of their title and mortgage situation.
Does their house have a clear title? In other words: is the house’s title under their name only? Or is there a creditor or a second part that has partial ownership of the home?
Even if they are sole owners, they can’t legally switch the title over to you without a process of probation. That’s when a probate judge steps in to declare you the new legal owner of the property’s title.
Also, is there mortgage completely paid off? If not, what is the remaining amount on their mortgage and to whom does it need to be paid?
Both of these factoids are crucial to know before you go any further in deciding what to do with the house you’ve inherited. Even if you’re looking to sell your home fast, be sure to focus on this step.
2. Know Your Options
Now that you have a firm understanding of the legal situation with the home you’ve inherited, you can start to move things forward.
After you’ve inherited the title of the house and have a full understanding of the mortgage situation, you have three options: move into the house, rent the house out to someone, or sell it.
Each situation has its pros and cons, so you need to consider which pros outweigh the cons for your situation.
For example, if you’re currently renting then moving into the inherited home may seem like the best option.
However, if you aren’t the only one that’s legally inherited it (such as a joint inheritance with siblings), then you don’t have the final say. You’ll have to seek the permission of your other siblings before doing so.
If they do agree to that, then all is well. However, it’s unlikely that will happen. You risk falling into a fight with your siblings.
Instead, your two best options for that situation would either be renting it out or selling it so that all of you have something to gain from the property you own.
3. Tax Break Incentives
Not all of the factoids on this list are meant to overwhelm you. Some factoids will yield you a huge benefit, such as receiving significant tax breaks.
However, be warned there are also heavy inheritance taxes you could receive from ownership of the house depending on your situation.
One huge tax break you’ll receive is that you won’t be responsible for capital gain’s tax. You’ll receive the benefit of having the house stepped to market value the day your loved one died.
Because of that, you won’t be held responsible for any possible increase in value that’s over the cost of the property. It’s tax-free.
4. Your Inherited Home Won’t Be Free
A common misconception is that if you inherit a home without any mortgage to pay off, then you won’t have to fork over any money for it. Dead wrong.
In fact, there are things such as property taxes, liability and homeowner’s insurance, and other homeowner’s expenses such as heating and electricity you’ll be paying.
Obviously, those can become a hefty expense. Depending on your situation, you may not be in a position to pay for the expenses of two homes (yours and the inherited house).
For that reason, it may make sense to sell the home and receive a profit on the house.
5. You Won’t Just Inherit the Home…
The house may not be the only thing that you inherit from your loved one when they pass away.
You may also find a heavy amount of emotional baggage from the inheritance, especially if it’s among you and your siblings.
While you may want to sell the home, they may not. If you want to rent the home out, they may not. You may want to sell things like your loved one’s jewelry and furniture that your siblings want to keep… you get the idea.
Be as understanding as possible with this situation. People mourn in different ways, it’s important to stay patient and let them come around after some time to think.
At the end of the day, this phase will come to pass. You don’t want to start any bad blood over a temporary decision among family.
Selling Inherited Houses: Find the Right Decision for Your Situation
The most important thing to figure out when selling inherited houses is weighing out what the best situation is for you and your family.
Perhaps the home you’re inheriting has a lot of things that need fixing. If so, be sure to read this article on selling a house that need repairs.
For more inquiries, please feel free to connect with us on our contact us page and we’ll be happy to discuss with you further.