How to Prepare an Inherited Home for Sale

When you receive an inherited home as part of your deceased loved one’s estate, you must decide what you want to do with the house. One option is to move into the home, especially if you are renting or your current house is smaller.

Another option when the house is left to multiple family members is to sell the inherited home and split the proceeds. Before you can do this, there is a lot of paperwork involved, such as transferring ownership of the home into the surviving family members’ names. 

Furthermore, you have to update property taxes, house insurance, and anything else associated with the home into the new owners’ names. You still have to do this, even if you are listed as the only person to inherit the house.

Transferring Ownership of an Inherited Home

The house may need to go through the probate process to transfer ownership. This will largely depend on whether the deceased had a will, living trust, or neither. Probate ensures the individuals seeking ownership of the property are entitled to it. 

For example, if you are already listed on the deed to the house or are the trustee, then you can avoid probate. Another case where you can avoid probate is if your loved one had a beneficiary deed in place where the deed is automatically transferred to you upon their death. 

If you have to go through probate, you have to wait for the court to give you permission to take ownership of the property. In some cases, you may avoid having to transfer the deed into your name if you want to sell the house, as long as the probate court has given you permission to sell it. 

Regardless of whether you have to go through probate or not, you need to ensure you can legally take possession of the property and engage in real estate transactions.

Factors to Consider Before Listing an Inherited House for Sale

Aside from all the paperwork to get the house into your name so you can legally sell it, there are several other crucial factors to consider before listing the property for sale. You need to understand how these factors could influence your decision whether to sell the home or not.

#1. What is the house worth? 

The first thing you need to know is how much the house is worth. There are several websites where you can get a rough estimate of its potential value based on current market conditions. However, you have to deduct any repair work that is needed on the home from those estimates. 

#2. Is there a mortgage on the home?

If there is an existing mortgage, you will need to take over the payments until you can sell it. Then, you may need to transfer the mortgage into your name or refinance the house into a new loan. Otherwise, the lender could foreclose on the property, and you would lose your inheritance. 

#3. Are property taxes current? 

Property taxes may need to be paid to bring them current. You also have to pay property taxes for the current tax year when you sell the house. 

#4. Are there any other liens on the house?

If there is a second mortgage on the home or a home equity line of credit with a balance, you will have to assume financial responsibility for those debts until you sell the house. When the property is sold, after the first mortgage is paid, then any other outstanding liens are paid before you receive any proceeds from the sale. 

#5. What are the tax implications of selling the home?

Unlike the sale of your primary home, where you can receive a home sales tax exclusion, you do not get this exclusion when you sell it. However, if you can live in the home for at least two years before selling it, then you may qualify for the exclusion. 

#6. Are there inheritance and estate taxes? 

Depending on where the property is located, there can be inheritance and estate taxes that will need to be paid whether you keep the house or sell it. You should consult with a professional accountant or lawyer familiar with inheritance and estate law to learn more about these tax implications. 

#7. What is the overall condition of the house?

The value of the home is also determined by its condition. For example, if the roof needs to be replaced or other repairs are required, it will reduce the house’s resale value—that is, unless you want to spend the money out of your pocket to take care of any repairs, maintenance, and upkeep needed. 

#8. Will there be problems reaching an agreement? 

When there are family disputes or multiple heirs listed, it can be challenging to reach an agreement with everyone to sell the house. As you do, ensure you get everything in writing to avoid further delays or problems when you sell the property.

How Long Does It Take to Sell an Inherited Home?

Selling an inherited property can take longer than selling your house—sometimes several months up to a year; possibly longer if there are family disputes. This is largely due to the probate process, additional paperwork, and ensuring you are legally entitled to the property. During this time, you are responsible for paying the mortgage, property taxes, and other expenses associated with the home. 

Options for Selling an Inherited Home

Once you are approved to sell the house you inherited, you have several options to consider. You could go the traditional route and hire a real estate agent. However, they will often want you to stage the home, bring all repairs current, and take care of any outstanding maintenance issues to make the home “show ready.” 

Not to mention, you will have to pay sales commissions for both your agent and the buyer’s agent. Furthermore, after waiting for months or longer to be able to sell the house, you may have to wait several months or longer to sell the home. Do you really want to be responsible for the costs or liability of maintaining a home that long? 

Another option is to sell it yourself. However, you have to do all the marketing yourself to attract potential buyers. You also have to handle all other aspects of selling and closing the sale on your own. So while you do save some money, this may not be your best option.

Your next option is to sell it for cash to a real estate investor. Cash sales are fairly easy and straightforward. You do not need to stage the home, make repairs, or even hire a real estate agent. 

How Can I Find a Cash Buyer for an Inherited Home?

The easiest way to find a cash buyer in your area to sell an inherited property is to visit 800CashToday. Our service is free for sellers to use. You simply provide us with the details about the property. 

Then, we share the property details with a local cash buyer. Our local cash buyer or representative will need to see the house in person and will arrange a time that is convenient for you to do so. 

If you decide you do not like any of the offers, you are never under any obligation to accept them. You are also free to negotiate with the cash buyers if you feel the house is worth more than they are offering. 

Other benefits of selling your property through us include:

• Up to $10,000 Cash Advance
• Free Local Moving
• Free Credit Repair
• Quick Escrows and 10-Day Closings
• Local Cash Buyers
• Flexible Move Date

Are you ready to sell an inherited property? Find out how much you can get from motivated cash investors and buyers in your area by listing it through us today.