If someone passes away, their close relatives might be left in charge of their estate. However, for the beneficiary to make decisions on the property including selling, they should have express authority either from the deceased in the form of a written will or through a Probate Registry. If you are in possession of the inherited home and want to sell it, there are several things that you should either have or have fulfilled before you can offer the property for sale. Here is a list of the main requirements.
1. Determine the legitimate owner of the property
If the original owners of the property left a will, the executor or the trustee can distribute the property among the beneficiaries as stated in the will. If there is no will, you have to agree with the rest of the beneficiaries on who gets what out of the estate. You have to resolve matters to do with the title of the property before making an offer for the sale of the property.
2. Filling for probate
Probate is a process that determines the validity of a will conducted by a court. If the court finds that the presented will is valid, an executor who is named in the will is appointed to head the distribution of the property. During the filing for probate, all the heirs to the estate must be notified of the proceedings. The filing is done in a surrogates Court that resides in the county where the deceased had their primary residence.
3. Prepare for taxes
You are required to pay capital gains tax even if you sell your property at a loss. If you made a loss, the tax would be deducted from your income. Capital gains tax is paid if you want to use the property for investment such as when selling. However, if you live in the property for more than two years, you may be eligible for property sale tax exclusion. If you are single, you will not pay tax on the profit from its sale if the amount is under $250,000. Married persons are allowed not to pay tax for up to $500,000.
You will only be required to pay tax on the difference between the value of the property at the time of the death of the loved one and the price that you have sold the property. This is called the stepped-up basis.
4. Prepare the property for sale
Once you have a green light to sell the home, you should prepare your home for sale by clearing any debts or liens attached to its title. Some of the bills that you need to pay include utilities, property tax along with any loans that were procured against the title of the property. It is also advisable to take property insurance to cover it from possible liabilities.
The other bit that you need to do to get the house ready for the market includes making repairs, maintaining the lawn, repainting the rooms, and getting rid of personal possessions if you do not intend to sell them. Preparing the property for sale ensures that it fetches a good price.
5. Set a price for the property
The best way to determine the value of the property is to get it appraised. Consider a higher price than the appraisal amount to give room for negotiations. However, do not set the price too high above the appraisal amount to get a good number of willing customers. It is good to look at different offers before setting on the ideal buyer.
We recommend that you write down all the things you need to do before selling an inherited property and fulfill them all before offering it for sale. This way, you will avoid numerous legal handles before the title changes hands. Do you want to sell your home quickly? Sky Equities, LLC offers cash for homes in any condition. Contact us today.