Dealing with the passing of a loved one is an emotionally challenging time, and to add to the complexity, you may find yourself faced with the task of dealing with and selling an inherited property. This situation can be overwhelming and confusing, but understanding the process is crucial to smoothly navigating through it.
At Dwela, we recognize that you’ve got a lot on your plate already. We’re here to serve you and eliminate unnecessary stressors so that you can focus on what matters most during this time of transition.
Understanding the Basics of Selling an Inherited House
Selling an inherited house begins with understanding the legal implications that come with the property. When you inherit a house, you are the new owner and assume all associated responsibilities.
You’ll want to consider any potential tax implications, such as capital gains tax. By definition, capital gains taxes are the taxes you pay on any profit earned from selling the property. Whether you are inheriting a house that is paid off or one with a mortgage, you will not have to pay capital gains taxes on any dollar amount other than the appreciation that incurs after you inherit the property. Essentially, you are only responsible for paying taxes on any increases in value after the property is placed in your name. Additionally, if you decide to reside in the inherited property for at least two years before you sell, you may qualify for an IRS capital gains exemption. We suggest consulting with a tax professional, who can provide clarity and help you understand any tax obligations that may arise from selling the property.
We often get asked if all heirs of the inherited property need to agree to sell the property. Generally, consensus among the heirs is preferred, but laws may vary by state. All beneficiaries listed on the property will be notified of the sale, but it is not required by federal law for all listed beneficiaries to agree to the sale. It’s advisable to consult with an attorney who specializes in probate and inheritance laws to ensure you comply with all legal requirements.
The Process of Selling an Inherited House
To begin the process of selling an inherited house, there are several important steps to follow. Start by gathering all the necessary documents related to the inheritance.
- Will or Trust Documents: These legal documents outline the intentions of the deceased regarding the distribution of their assets, including the inherited property. The will or trust documents establish your authority as the heir and provide guidance on how the property should be handled.
- Death Certificate: A death certificate is a vital document that certifies the passing of the property owner. It serves as official proof of death and is typically required during the property transfer process.
- Letters Testamentary or Letters of Administration: These documents, issued by the court, grant you the legal authority to act as the executor or administrator of the estate. They establish your ability to manage and sell the inherited property.
- Evidence of Legal Ownership: To sell the inherited property, you need to demonstrate your legal ownership. This can be achieved through documents such as the deed, title insurance, or other relevant legal records.
- 1099-S Inherited Property: Required by the IRS, you will receive a 1099-S for the sale. Come tax season, you will need to complete Form 8949 and Schedule D in your tax return as a sale.
- Property-related Documents: Depending on the specific requirements of your jurisdiction, you may need to provide additional property-related documents. These could include previous surveys, inspections, or any other relevant paperwork that pertains to the property’s condition or history.
It’s essential to keep these documents organized and readily accessible throughout the selling process. Working with professionals experienced in handling inherited properties, such as attorneys or real estate agents, can help ensure you have all the necessary paperwork in order and avoid any potential legal issues.
Determining Fair Market Value
After gathering all the necessary documents for selling your inherited property, the next crucial step is determining its fair market value. Accurately assessing the value of the property is essential for setting an appropriate asking price and attracting potential buyers. There are various routes you can take to determine the fair market value of the inherited property, each with its own benefits and considerations.
- Professional Appraisals: Appraisers assess various factors such as the property’s condition, location, size, and comparable sales data. They provide an unbiased evaluation based on their expertise, giving you an accurate estimate of the property’s value.
- Real Estate Agents’ Assessments: Consulting with real estate agents who specialize in your local market can provide valuable insights into the property’s value. Their expertise can help you gauge the potential selling price and make informed decisions.
- Researching Comparable Sales: Conducting thorough research on comparable sales in the area can give you a good sense of the property’s value. Look for recently sold properties that are similar in terms of location, size, condition, and features.
- Consider a Cash Offer: This is a common choice among beneficiaries as they come to realize that listing an inherited property on the market can be too overwhelming given the circumstances.
Additionally, be aware of any time limits or restrictions on selling inherited property that may apply in your situation. Some states have specific timeframes within which you must sell the property, while others have no strict deadlines. It’s important to familiarize yourself with the laws in your jurisdiction to ensure compliance.
Selling an Inherited House to Dwela
At Dwela, we understand the challenges of selling an inherited house and the importance of a streamlined process during such a sensitive time. We offer a simple and hassle-free solution to selling inherited properties.
- The Walkthrough: One of our specialists will meet you at your property and assess your home as well as your needs.
- Receive Cash Offer: The conclusion of the walkthrough will include our full cash offer on the spot. With the Dwela Process, there are no surprises or hidden fees. You won’t be waiting around to see what our final offer will be.
- Close Within 14 Days: Our cash offer is truly cash, so you will never have to worry about any sort of financing issues. Before the scheduled close date, our specialist will be in constant communication making sure you’re prepared for the big day.
With Dwela, you can avoid the stress of repairs, staging, and open houses. Hassle-free is our guarantee. We take care of all the work, so you can focus on spending time with your loved ones and handling other aspects of the estate. Our goal is to make the selling experience as smooth and efficient as possible, allowing you to move forward with peace of mind.
The Bottom Line
Selling an inherited house can be a complex and emotionally charged process. Dwela offers our sympathy and a professional solution for selling your inherited property. Our streamlined process allows you to bypass the usual hurdles and challenges associated with selling real estate.
If you’re looking for a stress-free experience, choose Dwela. Take the first step and ease the burden of selling an inherited house today.
Ready to get started? Contact us today!