Life is both random and cyclical. Everyone’s born and, eventually, everyone dies. For those mourning the recent loss of a loved one, death is an emotional time where other responsibilities can become bothersome. Feeding into this is the addition of newly acquired assets gained in the recently deceased’s Will and Testament. While small assets are easily divisible, large assets, like property, are confusing to handle. If you’re in this position and don’t know what to do, read this guide on inherited estates: reasons to sell a property you inherited so that you know what to do during this tough, confusing time. What To Consider Before SellingA timely or untimely death is an emotional experience. While there are many things to consider with the funeral process, plus the emotions that follow, it’s a lot for one person or family to go through. There is more added stress when the recently deceased bequeaths their estate to their loved ones in their Will and Testament. Especially when the family already owns a home or property, the addition of another one adds greater anxiousness when dealing with the cost and responsibility that comes with it. Here are some important considerations to keep in mind when dealing with a new property before moving into it or selling. CostOf course, owning a property is a serious investment. Many considerable costs can easily eat away at your finances if you don’t decide what to do with it soon enough. House sitting amounts to more financial responsibility than you’re ready to acquire. Keep in mind that this includes property taxes, mortgage, homeowner’s insurance, maintenance, utilities, upkeep, and protection. Each of these adds to your financial responsibility in unforeseen ways. Granted, these are all costs meant to uphold the home’s property value. The less effort put into the property’s upkeep, the greater its resale value reduces. That also doesn’t consider the respective probate costs, which can add up in legal fees with lawyers, accountants, funeral services, and other logistical nightmares. TaxesDealing with property taxes is a headache in itself that only intensifies with the addition of a new property. Ultimately, inheritance is taxable. When dealing with inherited property, you face inheritance taxes and estate taxes. Although estate taxes directly come out of the deceased’s assets, state law determines inheritance tax. There is no federal inheritance tax, and not every state requires it, but it is nevertheless important to keep in mind. You pay inheritance tax after the estate tax is divided and distributed to beneficiaries. It is respective to the amount of money or assets received in the inheritance. LegalityAs previously mentioned, there are legal requirements set forth for the family to deal with after someone passes away. When a property is in question, families and lawyers must deal with something called probate. Probates are a legal process in which lawyers review and validate a person’s Will and Testament. They may need to administer property if there is no will present. With joint property ownership, surviving spouses always receive those assets. If there are no surviving spouses, surviving children or other relatives deemed suitable will receive them instead. With that, the unfortunate reality for many families is that probates come with excessive legal costs. Diving up assets and inherited property is a timely process that increases cost the longer it takes. Some states skip probates if the total value of assets is less than an expected amount. ConditionIf your inherited property is in disrepair, that adds another series of added costs to your total expenditure. If the home is in bad shape, you’re responsible for its maintenance and upkeep. Exterior, interior, and landscaping maintenance all take time and money to maneuver effectively. That doesn’t even consider the cost of labor and supplies, nor the time it takes to find reputable contractors or subcontractors. It is important to note that you’ll see a higher return on investment with more maintenance and upkeep put into a home. There are also extreme hoarding scenarios where the house fills with clutter or worse. It’s your responsibility as the new homeowner to account for these repairs. What To Know When SellingNo guide to inherited estates: reasons to sell a property you inherited is complete without mentioning the process of selling the home. Given the reasons you should sell, next comes how to sell for the best offer price available. There are two main ways to do so: through a realtor or a home buying company. Both have their advantages, but depending on your time, energy, and financial investments, you’ll want to pick the best one for you. Using a RealtorThere’s nothing wrong with using a licensed realtor to sell your inherited property. They have the knowledge, experience, and tools to list your house based on current market trends and competitive rates. However, there are downsides. Realtors are in no rush to sell your home, and the longer it remains listed, the greater it loses its market values. Additionally, realtors often charge a fee for their time, adding further financial burden to your current stress. Using a Direct Home BuyerAlternatively, you can use a direct home buying company. They offer cash for houses “as-is,” so you can sell your home as fast as possible. Assuming you don’t have the patience or time to list your house, home buyers offer an immediate price. At Direct Property Buyer, we offer cash without contingencies or closing costs, so you get the most amount possible. We also don’t conduct any inspections so that you can sell your home in any condition. Naturally, the most reasonable option is to use us at Direct Property Buyer. We work in the Chicagoland area, so if you want to sell your home fast in Schaumburg, you’ve come to the right place. Don’t believe us? Read any of our five-start Google reviews for proof of our commitment and dedication to selling your home while paying you the amount you expect for it. Contact us today for a free consultation to get started.
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AuthorEric Strung and Direct Property Buyer Team Archives
January 2024
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*Members of Direct Property Buyer have real estate licenses held by Spartan Residential.
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