Inheriting a house can be a blessing and a curse. While there are many benefits, financially speaking, there is also a lot to consider. There is the emotional impact of dealing with the loss of a relative, maybe a parent, and there is the paperwork, legal responsibility, and financial matters that need to be taken into account when inheriting property.
Getting an inheritance doesn’t always work out in your favor. If you live in a state with an inheritance tax on property, you may find yourself facing a generous tax will. When the family home gets passed on to heirs after the death of parents or other relatives, there are three options that beneficiaries typically choose: live in it, rent it, or sell it.
When inheriting a house, most heirs have no interest in living in it: it can be emotional and difficult or maybe it’s an old house that needs a lot of repairs and they don’t have the money to fix it. Other times, the house was inherited to the siblings and, while most of them want to get rid of it, the one that wants to keep it needs to buy the others out – and it can be expensive.
That’s why most people dealing with an inherited property only consider the two ways they can benefit financially from the property: either sell it or rent it out. Obviously, people often go with the option that can generate the highest profit. Renting is a good choice if you wish to earn consistent income without losing sight of the beloved one’s memory.
While the monthly rent increases the income for the family and, if you eventually decide to sell, the value could possibly be higher, there are cons to this. Renting a house means the property needs to be refinanced, you need to spend money on repairs, high property taxes on the new stepped-up tax basis, and let’s not mention the hassle of being a tenant.
For some people, the downside of renting or simply for financial reasons, selling the property still seems to be the best route. Selling is a good way to avoid never-ending property taxes and mortgage payments. As soon as the probate process has ended, you can get the property ready for sale with all the paperwork that needs to be filled.
Even if the house isn’t occupied, maintaining it can be costly. A house sitting empty creates mounting costs and ongoing expenses. A few aspects like homeowners insurance, maintenance, utilities, taxes, and general wear and tear can make a dent in your finances. An unoccupied property will deteriorate over time, resulting in a drop in the home’s value.
Most inherited homes are in really bad condition because many times the owner was elderly, sick, or was unable to give it maintenance. This means that you, as a beneficiary, will be responsible for all the necessary repairs. Repairs, no matter the scale, involve a lot of time and money.
When a person passes away, their properties are put into a court process called probate. This is a legal proceeding used to settle a person’s estate after death. It can be complicated, expensive, and time-consuming. Dealing with the loss of a relative is hard enough, and meeting with lawyers and accountants at the same time can be overwhelming.
When you sell an inherited property, any tax you owe is based on the increase in value while the house was in your hands; that is, from the date of death until you sold it. If you sell the house quickly, even if it increased in value since your relative purchased it, you won’t pay capital gains tax.
Inheritances can be filled with both emotional and financial consequences. Many families can’t handle the stress of cleaning or repairing the property, so they end up doing nothing and this can be costly. If you don’t have the time or money to fix your inherited house and don’t want to go through the long process of selling it the typical way, consider selling it as-is.
Seattle home buyers will buy your house regardless of condition. If you keep searching “sell my house fast Seattle”, I Will Buy House can ease your burden. We buy houses in Seattle and help homeowners get out of difficult situations.
Have you ever wondered, “can I sell my house fast in Seattle, even if it’s inherited and in a bad condition?” The answer is yes. At I Will Buy House, we buy houses in Seattle regardless of location, condition, or area. Contact us today, receive an offer within 24 hours, and in less than a week receive all cash for your property!