I inherited a house and want to sell it. Now what? Being gifted a property after the demise of a loved one can bring both blessings and struggles, especially if such a gift is real estate. On the one hand, inheriting a house can bring comfort when done rightly. So, it can bring tons of inconveniences, mentally, financially, and emotionally. For instance, if you are inheriting a house paid off by your parents, you have them to thank for leaving behind such valuable possessions. But, even though it can be inconvenient, if you have not inherited a house with no mortgage, it doesn’t have to be the end of the world for you.
But, if you are inheriting a house in California that is paid off, the next thing on your mind should be what to do when you inherit a house with no mortgage. In short, this means you have no debt to worry about and thus, can proceed to do three basic things with the property.
- Move into the house.
- Rent it out.
- Or you could sell it.
The first two options are quite straightforward since the house remains yours despite which you choose. But, if you are well-to-do and this inheritance will burden you, especially if you live far away or in another country, you can decide to sell the property. Selling inherited property is not straightforward, and there are many pitfalls you must learn to avoid.
Read on to discover what happens when you inherit a house and what pitfalls to avoid.
Personal Inheritance or Sibling Inheritance:
Sometimes, things do not go as planned, and the inheritance belongs to you and your siblings. In this case, selling the inherited property becomes the decision f the majority and not just you, especially if you cannot influence the decision of others. Firstly, concerned parties have to agree that the inherited property will be sold; otherwise, you will spend time settling disputes after the demise of your loved one.
If someone disagreed with selling the inherited property, they might consider buying you out of your share. This can be a long and drawn-out process with more legal fees. The best way is to inherit the property alone (which is out of your control) or find an agreement with every party concerned.
If every party concerned agrees with the sale, then a decision has to be made about who will handle the process. Lastly, the proceeds from the deal have to be shared as agreed between siblings.
Find Out the Value of the House:
Before you decide to put the house up for sale alone or alongside your siblings, you need to know how much it’s worth. Sometimes heirs are eager about the inheritance and care about getting it sold rightly. Several factors affect the asking price of any property, and they include:
- The location.
- The condition of the property.
- The market conditions for the area.
- Call a real estate agent and get a valuation.
Does the House Need Repairs?
Inheriting a house and selling it comes with its demands also, especially in your pockets. This is because you might need to carry out some repairs to get top dollar from the property sale. Also, to ensure a quick sale, you must make some major upgrades, considering the house might be quirky and not designed with up-to-date features.
Generally, homes in better condition will not only sell faster; they will also be more likely to attract a higher price. But this doesn’t mean you cannot sell as-is, as cash buyers like John Medina Buy Houses are always willing to take on such properties. Although living in an inherited house might also warrant you making upgrades, this might just be unavoidable.
I inherited a house. Now what? Do you want to sell it? Be ready for some financial commitments to this cause. Some of the costs that you have to handle when selling an inherited property include the following:
- expenses relating to listing the property, such as the cost of surveys, repairs, staging, and
- the closing costs associated with the mortgage.
Although there are several things to do whenever you are wondering what to do when you inherit a house with no mortgage? Just remember that selling an inherited home can be a complicated process. You should ensure that you know all that there is before deciding what to do.