Inheriting property feels like winning the lottery at first until the news settles in. With all the plans that need to be made and the decisions to follow through on, inheriting a home often ends up being stressful instead.
Here are five things you need to know about inheriting property.
1. Bills and Debt Become More Important than Sentimentality
You don’t want to make a quick decision after your loved one passes, but sometimes you have to. You have three options to consider:
- Sell the property.
- Move into the property.
- Rent out the property.
If you currently rent your residence, then moving in might be your best choice. It does, however, become complicated if you have other siblings or relatives who want the home. This is especially true if you and two siblings inherited the property. Chances are, you aren’t going to want to live there together.
Renting out the home might seem like a good option, but consider the stress being a landlord entails. Not only that, but it’s time-consuming; especially if the property needs work.
When evaluating what to do after inheriting property, you might quickly realize you need to sell. Often, you need to sell quickly. This isn’t just to get the money but to avoid all the hassles of trying to sell a home for months on end.
2. You Might Receive Large Tax Breaks
If you sell the property, you aren’t going to pay capital gains tax. That’s because the property tax is what’s referred to as “stepped to market value” at the time the death occurred. This step means that if the home is valued over the cost, you get that tax-free. You’ll always inherit the house at fair market value as of the date of the death.
3. You Might Have to Pay Other Taxes
Most people never face federal estate taxes because the value of the property has to be in the millions of dollars. With that said, the value for state estate taxes is often much lower. Depending on where the property is located can create a big difference in the amount you actually inherit.
4. Even the Free Homes Tend to be Costly
There are times that the estate settles the home’s mortgage. In situations such as these, you are essentially getting the house for free. While inheriting a home free of a mortgage saves you money, it is often still expensive.
Here are some other expenses you might not be thinking about:
- Property taxes
- Liability insurance
- Electricity bills
- Homeowners insurance
- Heating bills
- Wear and tear
All of these expenses add up to create a massive hole in your wallet. On top of that, if you decide to sell the home, you face other costs related to the sale.
5. It’s Possible to Inherit Other Problems
Inheriting property often comes with emotional and financial consequences. You might have to sort through lots of household goods with the property. This includes things such as electronics, furniture and clothing.
There’s bound to be some conflict regarding the sentimental items between family members. That leads to massive amounts of strife within your family. It’s also stressful for many people to move personal belongings of their loved one.
Inheriting property from your parents makes this even more difficult. That’s why many people struggle to clean out the homes and sell them after they’ve been inherited. When this stress hits, it’s not uncommon for people to wait a year to do anything, but this can be costly.
Not selling the property and not living in it only increases the insurance and maintenance costs in the long term. After investing all that money, there’s nothing to show for it in the end except the financial stress and emotional baggage it added.
Inheriting Property? We Can Help!
There’s no reason to be overwhelmed with your inherited home. Integrity Homebuyers deals with these situations on a regular basis and we are ready to help.
With our services you can expect:
- No fees
- To sell your home as-is
- To receive a cash offer within 24 hours
- No hassle
- To work with a professional team of trusted members
- That everything will be completed quickly and painlessly.
We will give you a fair offer and pay in cash. There’s need to wait for financing or perform any repairs. Leave all the work to us! Call (800) 818-4145 Today.
We Buy Houses in Maryland and Washington DC
