One difficult topic real estate professionals routinely have to discuss is about selling an inherited home from a relative when they pass away. It’s an overwhelming experience, one filled with emotions and many questions. While talking about it is difficult, it is smart to be prepared. This includes having conversations as a family to determine who will inherit the home, are there specific instructions about what‘s to happen to the home, and where the deed and where other paperwork is located.
After the estate has been settled, and the home received as an inheritance, deciding to sell, rent or keep the home is the first step which will help determine what to do next. For those who decide to sell the home, it is a good idea to work with a team of professionals including a lawyer and a real estate professional who can offer advice and guidance throughout the process.
Although each situation is unique, here are some the tips to help you prepare to sell an inherited property:
Assemble a strong team of professionals. Working with a realtor, lawyer and potentially a tax specialist can help make the process of selling an inherited home go more smoothly. A team of professionals working together can give the guidance necessary to prepare the home for sale and get all of the affairs in order. A real estate professional can offer crucial, local market information that is especially helpful if the heir does not live nearby. Lawyers and tax specialists can help put all of the processes in order to ensure that selling the home is as easy on you and your family as possible.
Do a walk through and get organized. Going from room to room and looking at everything from the condition of the floors to how fresh the paint looks can help determine what may need to be done to the home to help it sell more quickly. If the inherited home is older, an inspection is important before making any decisions as there may be certain systems that need renovations. Equally important is to gather all of the necessary paperwork such as the deed to the home as well as researching whether there are any mortgages on the inherited home that need to be paid. Even if the original mortgage was paid off, a reverse mortgage may have been negotiated to help cover expenses. Also looking into local property taxes and when they were last paid is important.
Have the home appraised and price it correctly. Property received as an inheritance is not considered to be income by the beneficiary. The adjusted basis of a home is its fair market value at the time it was inherited, so it is important to get an accurate appraisal of the home when you decided to put it on the market. A real estate agent can also provide counsel on an appropriate listing price to match its market value. Out-of-town beneficiaries can also find it difficult to select competent appraisers, inspectors and other professionals to assist in the home selling process, all of which a real estate professional can assist with.
Consider staging or other cosmetic improvements. Although not necessary in all markets or price ranges, staging can mean the difference in getting a home sold in a price-competitive market. An inherited home may not be furnished in the style of other local homes on the market selling at a similar price. A realtor can help determine whether staging is a good fit for a specific situation. They may also suggest making aesthetic improvements to the home such as repainting rooms and/or landscaping the yard or other parts of the property. Make sure the lawn and landscaping look good and that the exterior of the house is in good condition. Low curb appeal can keep potential buyers from researching a home they may otherwise love. Here’s a more comprehensive list of ways to improve the cosmetic appearance of the home.
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