How to Sell Inherited Property

Selling an inherited property can be confusing for a few reasons. You might not be sure what your tax burden is. You may be concerned about the condition of the property. You might even be inheriting it with multiple people. Let’s take a deeper look into how you might sell your inherited property.

How Much Will You Need to Pay in Taxes?

Surprisingly, this usually isn’t a concern. When you inherit a property, any due taxes (like property taxes) are generally paid by the estate first. Most states have fairly lenient limits on inheritance, so you don’t need to pay inheritance taxes. So you could inherit a $500,000 house and not have to pay inheritance taxes if your state’s limit on inheritance is $500,000. But if you inherited a $750,000 house in such a state, you might need to pay inheritance tax on the $250,000 difference.

When you go to sell the house, you only pay taxes on the gains after you inherited it. If you inherit a $500,000 house and sell it for $600,000, you pay taxes on the $100,000. But if you inherit a $500,000 house and sell it for $500,000, you don’t pay taxes.

What If the Property Needs Repairs?

A $500,000 house can seem like an albatross or white elephant if it needs extensive repairs. Many mortgage companies simply won’t back a loan for a property that is run down, damaged, or not in livable condition. And unfortunately, properties can age. In this situation, you can take out a Home Equity Line of Credit to improve upon the property. But the far easier solution is to sell your house fast to someone who buys houses in cash.

When someone buys houses in cash (as we do at We Buy Houses Cincinnati), they don’t need the approval of a mortgage company to buy the house. Even better, cash buyers are able to purchase your house as quickly as the money can be transferred.

What If There Are Other Inheritors?

If you’ve inherited a property with multiple people, the best solution is usually to sell. While you can try to manage a home with multiple parties (such as siblings), it can be complex. You can rent it out for profits, but one person will often have to be responsible for administration and repairs. You can all try to sell to one inheritor, but this usually means that the inheritor would need to get a mortgage loan to buy the others out. If the property is damaged, that is difficult.

For most people, selling an inherited property just makes sense. If there’s no sentimental reason to keep the property, the property itself will require upkeep, and everyone who inherited the property will need to continually agree on its use.

How to Sell Inherited Property

Now, let’s talk about logistics because there’s also the question of how you sell the property to begin with. When the estate is finally settled, you should receive the deed. The deed will need to be recorded in your name before the property can be considered inherited.

Sometimes, a property that was intended to be inherited needs to be liquidated by the estate before the inheritor is able to acquire it. This can happen because the estate had debts that exceeded the other assets. This is still a great time to try to sell a house to a cash buyer, as it’s in the estate manager’s best interest to ensure that the inheritor gets the most money as quickly as possible. We buy houses. If you need to sell your house fast, whether it’s inherited or not, we can help. Not only do we buy houses that are old, require updating, or need repairs, but we can also give you a cash offer — fast. Contact us today at We Buy Houses Cincinnati to learn more.