Most people dont like selling inherited property because there is an emotional connection with the property or it is a time consuming task. However, if there are disagreements between multiple family members about the sale of the house then the process can become an all out family war. On the other hand, if the family members, siblings, parent, aunts, uncles, etc. with an ownership interest in the property come to an agreement about selling the inherited property, then there are steps that should be followed in order to successfully sell the property. In this article, we are going to discuss the process involved when selling an inherited property.
Before you sell the property you inherited, the property must first go through probate. The process may be long or short depending on the state where the property is located and the value of the inherited property. If the value of the property is high, then the probate process will take longer to conclude meaning that you will have to wait for a while before you put the property on the market. Once the property goes through the probate, the court will give the executor of the will the authority to distribute the property assets and settle all the property debts. If there are multiple family members who will share the inheritance, then the executor will need the permission of the family members as well as the court in order to sell the property.
2. Agreeing to Sell
If everyone who is directly involved with the inherited property agrees to sell the property then the executer can petition the court to allow the sale the property. However, trouble usually occur when one or more sibling are opposed to some aspect of selling the inherited property. In this case, then the parties must sit down and negotiate until an agreement is reached. The courts will only give permission to sell the property if there is agreement from all parties who have a vested interest in the sale.
3. Preparing to Sell
If all parties are in agreement, the court will give the go ahead meaning that the inherited property can be sold. However, before putting the house into the market, the house may need to repaires and / or remodeling. The heirs need to ensure that the property is in good condition so as to be able to sell it at good price. If the inherited property is put on the market without renovating it, then it will take long time before a serious buyer get interest in buying the inherited property. The sales value of the house will also be less.
Another option for all of the parties to consider is to sell the property in its current physical condition to home buyers or real estate investors. They will assume all of the hassle, time, and expense of repairs and remodeling. And these house buyers will purchase with all cash. This would be a hassle-free example of how to sell a house you have inherited.
4. Tax Considerations
Connect with a tax adviser to help you understand any tax implication of selling an inherited property. Heirs should also be aware of any liens on the property prior to closing.
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