I Inherited A House
You have inherited a house, now what? After you inherit a home, a lot of times the hard work begins. You may be happy about your future project, or you may not be too thrilled about having a new property to maintain, pay taxes on or to clean out.
Some people want to rent the house they have inherited, some people will want to fix up the house themselves to sell, some people want to keep the house they have inherited so a family member can live in the house, and some people have decided, or are in the process of deciding, to sell their inherited house. All of these situations often times involve siblings, or other heirs to the estate, to work together to make the best decision about the inherited house.
Keeping an inherited house will have its own challenges to get through like how to pay for repairs and how to pay out the heirs that want to sell the house. Even though selling a house when the owner has passed on is a little complicated, you can still sell such a house without experiencing many problems. The decision to keep the inherited house or to sell a house you inherited can be daunting.
The following information will help you with any questions you may have. You can reach out to us at 801-382-9199 anytime with your questions. You can see there is lots to think about when you have inherited a house.
Should We Keep or Sell an Inherited House?
Rent the House
If you and all of your brothers and sisters decide you want to rent out the inherited house, then you will need to share the income and expenses and responsibilities unless one sibling buys the others out. By renting out the property, you not only earn money but also get more time to figure out what everyone wants to do with the house. Maybe one of your brothers or sisters are trying to get a loan for the house that will take a few months. Sometimes, however, it can be quite challenging to figure out the amount to charge as rent, what to put in a lease and deciding how long to rent the house. Again, there is power in talking it through. Decide together!
Sometimes the inherited property may be 20 or 30 miles away, thus managing it becomes hard. Tenants can be very demanding and repairs are always popping up. In such situations, it might be better to sell it rather than incur unnecessary costs such as traveling. You could hire a person to manage your property; however, it will cost you 10% to 12% of the rent. It is a big decision, so everyone should talk it through.
Fix Up the House
Sometimes the members of the estate might decide to keep the house and to fix it up for resell or to rent the inherited house. Do the simple things first before dealing with the much harder repair items. For example, repaint walls, get new carpet, maybe some granite in the kitchen, trim the shrubs and remove clutter before repairing the plumbing and electrical systems. No matter what these improvements cost to do, in the eyes of potential house buyers, the value of the house will be much higher. Therefore, even if it means hiring a competent handy man or contractor, do not hesitate to hire someone for the house repairs or house fix up you plan to do.
Before you embark on renovating the whole house, it is advisable that you figure out if it is worth it to fix up the entire house. Do you have the money and time to complete the project? Will finishing the basement, for example, increase the house’s net value? Often times certain renovations only return 70% to 80% of the cost. So, although you may sell at a lower price, many times you will end up with more money NOT doing some repairs or fix up to the house.
Keep the House
There are times when all the people that are entitled to the inherited house decide to keep it. There can be many reasons such as one of the family members is going to buy the house or maybe everyone agrees that one of the heirs can live in the house or perhaps everyone will keep the house as a rental. However, when you do this, you will need to think about a lot of factors. To begin with, if the estate and the house in the estate belongs to everyone, someone may need to buy everyone’s share of the house from them. The person that wants to buy the house will need to get a loan or maybe they have savings they can buy the house with. So, if cash is not readily available, and you cannot get an instant loan, the person that wants to buy the house may not be able to.
There are a number of things that you can do with your inherited house. But let’s be honest, you will most likely want to prioritize things that generate needed cash. The simplest option would have been to rent it out, but then managing it may prove to be a a very big pain. Maybe keeping the house is not the best option. Maybe the best option is to sell your house. Selling to a professional house buying company, such as Gary Buys Houses, can solve your inherited house problems and be very easy.
Sell the Inherited House
For most families with an estate to settle, the best thing to do with inherited property is to sell the house because multiple people have a claim to the estate, and often times the house needs some repairs. If the home is located in a desirable neighborhood, needs no repairs, and there is no hurry to sell, then selling a house by listing with a Real Estate Agent would be a fairly easy and simple process. It will just take several weeks. The process can also be very very simple if you want to sell your house to a professional house buying company.
Selling a property however is not an easy thing to do sometimes. It is not something that you just decide and do! Rather, it is a detailed process which involves a lot of advertisement and commitment. Consequently, without prior knowledge of how to do it, you may end up being disappointed.
No doubt that selling the property is the ideal thing to do. But, how can you get your house sold easily? Buy calling Gary Buys Houses at 801-382-9199 for an instant offer. They are experienced in this line of business, and no matter how bad the shape of your house is, they will surely relieve you the burden associated with selling your house.
Sometimes your house may have zero or negative equity and thus selling the inherited house becomes an uphill task. Save time and let GaryBuysHouses.com do it for you. After all, what you need is the house sold and the money from the sale.
I Want To Sell A House I Inherited…
Go Through The Probate Process
Before you sell a house or keep a house you inherited, the estate, including any houses owned by the estate, have to go through the probate process unless the property of the estate is held in a trust. Even if you keep the house vs selling your house, it is best to transfer title to the person that will end up with the house. Sometimes Probate in Utah can be fast tracked, so the process does not have to go before a judge. However, all of the heirs to the estate will need to agree on how the estate is handled and which person will be the personal representative. After the estate, including the house(s) in the estate, go through the probate process, the court will authorize a personal representative to act in any way you wish. This can be the same day or several weeks form when you submit the paperwork to the probate court. If you are the will executor and some of your relatives share in the inheritance of the home, you need to get their permission and that of the court to sell it.
Once all the individuals involved in the inheritance agree that the home should be sold, the personal representative (PR) can sell the property on behalf of the estate. It is important to keep in mind that the PR can sell assets, but they are bound by law or a will to distribute the funds properly. It is suggested that the estate have a separate checking account only for estate business. The inherited home that you need to sell may require repairs or remodeling before you list the house on the Utah Multiple Listing Service with an agent. After taking out the belongings of your loved ones, you can hire an inspector to find out if there are any areas that need repairs. If you reside far away from the house, you can contact a real estate agent who lives close to where the home is located and ask him or her to assess it on your behalf and provide you with suggestions about any changes that can make it easier to sell. Such changes can include adding landscaping or remodeling a kitchen or bathroom among other things. You may also chose to sell the property as is even if it means that you will sell it at a lower price than you would have if you made some improvements.
Consider How Much Tax You Have To Pay
If you choose to sell an inherited home in Utah, more than likely there will not be any tax due. CONSULT A TAX PROFESSIONAL to make sure. Most likely the value of the estate is lower than the amount that taxes are due on. In 2017 the one person exemption was $5,490,000.
My House is in a Trust
Selling An Inherited House That Is Held In A Trust
If the inherited home you need to sell is held in a trust, you need to work with the trustee in order to sell it. If the trustee(s) are deceased, the trust should have named a successor trustee. The successor trustee can sell the property. The trustee or successor trustee of the trust can sell such a home it two ways. One of them is letting the trustee conduct the sale so that the proceeds will be owned by the trust. The other option is asking the trustee, or successor trustee, to transfer the title of the home to your name so that you can sell the house yourself. Since trusts are governed by complex legal documents, you should consult a lawyer to review your trust before you begin the process of selling the property.
Steps to take when selling a house with the trustee
- Read through the trust documents carefully and verify if the trustee or successor trustee is authorized to sell the home. The provision that grants a trustee the power to sell is usually included in the trust document. If power is not explicitly granted to the trustee, a court may conclude that the power is implied.
- Request the trustee to hire the services of a real estate agent. This professional will visit the property and also look at the trust documents to conform that the property can be sold. He or she will also consider if the trustee has the power to conduct the sale. Always verify with an attorney.
- Provide the title firm with proof that the trust is valid and that the trust document identifies the trustee or successor trustee. The title firm may also ask you to provide it with a Certification of Trust signed by a trust lawyer, a tax ID number and the death certificate of the person who created the trust.
- Close a buying agreement with the person who has agreed to buy the property. The trustee has to sign this agreement. The monies from the sale become the assets of the trust. The trustee can either transfer the funds to the estate account, the trust account or to you. It is best to have the proceeds go to an estate or trust bank account then transferred to the beneficiaries.
Steps to follow when selling a house without the trustee
- Read the trust documents to make sure that no provisions that can keep the trustee from transferring the title of the home to you exist. If there are no restrictions, the trustee can transfer the property to you.
- Request the trustee to transfer the property’s title to your name.
- Transfer the deed of trust for the property into your name with the trustee’s cooperation. The trustee is required to create a deed form that transfers the home from the trust to you. To make this deed official, the trustee will file it with the local property office.
- Hire the services of a real estate agent to sell the home. The sale proceeds will be yours because you hold the title to the home.
Apart from hiring a real estate agent to help you sell a house you inherited, you can sell it directly to an investor. This is probably the best option since they will take care of all the details, make sure you get your money fast and professional house buyers will not care haw many repairs need to be made to the house. To sell your home in this way, you can always reach us at www.GaryBuysHouses.com. We purchase houses fast for cash at good prices. You can sell your home to us fast and move on with your life. The loved one who willed you the house would not want to have any hassles and you should therefore take advantage of this win-win situation.
Please Call Gary at 801-382-9199 to ask about selling your Inherited House in Utah.
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Sometimes an inherited house is in livable condition and could be sold in an traditional way, but the estate or family need the money from the sale of the house fast. The family that sold us this house wanted several weeks to go through the house and to say good bye, but once ready, they wanted to sell in a matter of days. Of course we accommodated all of their requests, because that is how Gary Buys Houses operates.
Sometimes people inherit a house that needs so much work that doing all those repairs would be daunting from a money and time perspective. Sometimes the repairs a house needs are too overwhelming for the people that inherited the house to want to deal with. A Professional House Buying Company will be able to buy a house no mater what the repairs are like.
Have You Inherited a House in Utah?
Have you though, “I want to sell my inherited house”? If you have inherited a house in Utah and are considering selling the house, please call Gary at 801-382-9199 for a no obligation offer. You have nothing to lose. We can help with probate, city issues, house clean out or just give you an idea of what you can get for listing your inherited house, or we can make you an offer to buy your house. We look forward to talking with you about the house you have inherited.