Going through the process of probate can be a complicated and a demanding trial of emotions.
Attempting to grieve while considering selling an inherited house is no easy task, but thankfully there is lots of advice on how to approach the situation.
If you’re looking to sell a home that you have inherited, there are a few things that you will want to consider.
1. Debts Present On The Property
Prior to selling a home, you may want to see if there are any current debts that are owed on the property.
This might alter your decision to sell the home immediately or not.
If a home was purchased relatively recently, you may want to rent it to afford paying off the mortgage.
You want to run an asset/liability comparison to see if selling the home will be financially feasible for you.
You will be responsible for contacting any creditors and paying off the remainder of the mortgage.
You may even decide to move in and pay for the expenses yourself.
How much debt is on the property, and if there is debt on multiple properties, will alter your decisions to sell the home, or complete repairs.
2. Selling “As Is” Versus Renovating
Another decision you will want to make prior to selling your inherited property is the amount of repairs that you want to complete.
You can always sell the home as-is, but if you’re looking to increase value, minor renovations can make all the difference.
Again, you’ll want to run a cost benefit ratio if your expenses will be rewarded on the market.
You may end up saving yourself money by selling the home as is.
Newer homes, or older homes that have been maintained well may already be ready to be sold as is, or some homes may only require a limited amount of work.
This is definitely something you’ll want to consider prior to selling.
If you are in Los Angeles and you’re looking to avoid realtor commission rates, and want to sell the inherited home as-is without doing some renovations, you can choose to sell Los Angeles homes to a house-buying company.
This will also help you avoid the added expenses of selling your home on the market yourself.
3. Maintenance After Inheriting
Home maintenance can be unforgiving during the grieving process.
Lots of maintenance work needs to be completed and it doesn’t stop during the death of a loved one.
Lawn upkeep, insurance payments, mortgage costs, and utilities are all expenses that are going to be accrued while you’re attempting to sell.
Make sure you’re getting all your paperwork in order, and enlist some help if you’re having trouble handling all of the responsibility on your own.
If no one is going to be living on the property during this period you may be required to purchase vacant home insurance.
Vacant home insurance will cover the possessions inside if you’ll be away, but they may require certain standards be might prior to offering coverage.
4. Are There Multiple Heirs?
You will want to consider if there are multiple heirs to the property prior to selling.
Evening if an executor has the sole ability to sell the property, they may be required to distribute the funds among the heirs.
You will need to set aside the earned assets, according to the will’s stipulations, and if there is debt involved this will need to be calculated.
This can be a huge part of the conflict when selling an inherited home, so make sure you discuss your plans with everyone and include them in your decision making process.
This is one way to avoid developing problems further down the road.
5. Do You Want To Rent It Out?
If there is a substantial debt owed on the home you may want to consider renting in order to cover the mortgage and maintenance costs.
In many cases the executor of a will lives far away from the house and this may not be feasible for you.
However, this is a good option if you’re looking to cover costs and take care of the debt without investing yourself heavily.
There can be a lot more upkeep associated with being a landlord so make sure you’re okay with taking on this level of responsibility beforehand.
There’s a lot of self evaluation that is going to happen prior to selling a house that you’ve inherited.
You need to examine your situation, and the physical and financial responsibilities that you are capable of taking on.
Make sure you’re discussing all decisions with other family members and heirs prior to executing them.
Ensure that you consider these five things before you decide on selling an inherited home.