Many people view their inherited properties as priceless. For others, they are inconvenient eyesores that demand more than they can give. If you recently inherited an unwanted property, you will want to know how to legally navigate the process. At The Red Door Guys, we buy houses in Richmond, VA, and show you how to sell an inherited house below.
Inheriting an Unwanted Property
If you recently came into an inheritance with a property you don’t want or can’t use, you will likely choose estate liquidation to profit off the property and any assets that came with it. However, you should consult a local lawyer about what laws apply to your situation to avoid becoming entangled in tax-related issues.
How To Sell an Inherited House
A real estate inheritance can be a blessing or a curse, depending on your relationship with the deceased person and how they lived their life. Many beneficiaries choose to sell their property inheritance if:
- The deceased left the property in shambles
- The beneficiaries already own suitable homes
- The beneficiaries’ lifestyles and professional needs don’t align with the properties’ locations
If these or other scenarios apply to you, you can use the following guide to navigate your next step.
Mortgage or No Mortgage?
First, determine whether the deceased still owes money on their home loan. When you sell an inherited house, you must cover the remaining loan amount with the profits and continue paying until you close. Otherwise, just factor in utilities and selling services.
Do Others Have a Stake in the Property?
Sometimes, the deceased leaves a property to multiple people, complicating the estate liquidation. Speak with the named co-owners to determine their desires for the property. You might sell them your stake or find an alternative solution with help from an attorney. If you solely own the property, you can freely move forward.
Finish the Probate Process
Sometimes, the deceased owes money on previous debts. The probate process ensures those creditors receive what they are owed. Don’t plan an estate or inherited property sale until this process closes.
Since Virginia doesn’t impose an estate tax, you can rule out estate tax implications. However, you must still pay taxes on capital gains on an inherited home if you somehow increased the property’s value while you owned it.
Make Sure You Have a Papertrail for the Property
Next, collect, review, and verify the following documents:
- Ownership proof
- The deceased relative’s death certificate
- Your photo identification
- Tax and title records
- Seller disclosures
This paperwork supports your connection to the deceased and the property while ensuring future buyers have the legal information to which they are entitled.
Pick a Selling Method
The success of a property sale after probate ultimately depends on the property’s condition, location, and price. Consider working with cash buyers like The Red Door Guys to sell quickly.
Let The Red Door Guys Buy Your Inherited Property
The Red Door Guys understand your reasons to sell an inherited house. We offer fair estimates while minimizing your workload. Call 804-395-7355 to get your offer and learn more.