The Probate Process
You will only be able to sell the property once the estate has gone through probate. Probate is a legal process in which the estate is settled according to the previous owner’s will and testament.
During the probate, it is the job of the executor to ensure all assets are maintained and safe. This would include making sure the house is adequately insured. The executor is also responsible for filing tax returns for the deceased person.
The Value of the Property
Take a look at recent sales of comparable homes in the area. This will give you a sense of the property’s value. Make sure you’re comparing like for like.
This means checking the size and condition of the house you’re comparing yours with. Use the to help.
You’ll need to find out how much, if anything, is left to pay against any mortgage or loan on the house. Besides what’s left on the mortgage, check to see if there were any other outstanding bills or taxes that would need paying.
In cases where several people inherit a portion of the property, you’ll all need to agree that selling the inherited property is the right choice. You’ll need to decide who’s going to manage the sale process.
Tax Implications of Selling Inherited Property
You may have to pay taxes on any proceeds from the sale or from the inheritance of the property itself. Laws can differ from state to state.
When you sell a property you’ve lived in for several years, you can take advantage of a tax exclusion. This means you won’t pay tax on up to $250,000 of the proceeds of a sale if you’re a single homeowner. This doubles for married couples.
If you don’t plan to live in the inherited home for at least two years, you won’t qualify for this exclusion.
The selling inherited properties to report the proceeds as taxable income. The taxable amount is based upon the fair market value and any improvements made to the property.
Tax law is not simple. It’s wise to seek the advice of an accountant or attorney. This will help you to understand the financial obligations that come with inheriting real estate.
Preparing the Property for Sale
Once you’ve decided that selling the property is the right course of action, you’ll need to prepare it for sale. That will involve clearing out personal belongings. This can be very emotionally challenging.
It’s unlikely that you will be able to keep everything. You should find a few cherished items for yourself and other family members. After that, you’ll need to decide what to give away, what to throw away, and what you might be able to sell.
Homes are more likely to sell if they are clean and empty and . You may want to consider small upgrades at this point to help the house look its best.
How to Sell the Property
If you’re planning to use an agent, do your research well. It’s very important to be sure it is someone you feel you can trust. Check online reviews and use your own network to secure a recommendation.
You should also consider selling the property to a company that specializes in property investment. This can often be the most painless way to. You can avoid commissions, agent fees, or administrative costs.
It may also be the best course of action if there are repairs to be done that will be both expensive and hold up the sale.
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Casandra Properties of staten island, NY is a real estate marketing firm that is focused on lead generation for all its properties for sale. More leads equals bigger pockets in the end for everyone. If you are house hunting and looking for a house for sale don’t hesitate to give us a call (718)816-7799. If you think it is time to sell your house, we can get you top dollar for your property.
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