Inherited House Houston
Selling An Inherited Home
INHERIT A HOME?
Selling can be simple
If you need to sell an inherited home, you are likely in the middle of a difficult and heartbreaking process. Inheriting a home comes with a mix of emotions. On one hand, you are dealing with the pain and stress of loss. As you are probably realizing, handling someone’s estate after they pass is both a physically and emotionally draining.
On the other hand, sometimes an inherited home can be a valuable asset, but even then you have to bear in mind that a number of difficult financial decisions come with holding a property.
All of this can become overwhelming very quickly. Give yourself time to grieve, and be patient with your own healing process. You do not need to make a decision immediately. Eventually, though, you have to decide what you want to do with your inherited house. In this situation, you have three options: sell your house, move into it, or rent it to someone else. For many people who do not wish to move into the home, the simplest option is to sell the house.
Selling an Inherited Home in Houston: What to Do First
It’s stressful enough to sell your house under normal circumstances. When you are dealing with an inherited house or probate, it adds additional layers of difficulty. Moreover, it makes the situation vastly more complex.
We want you to know that our team is here to help guide you through your options during this emotional and trying time. If you have or are currently deciding what to do with an inherited property, here are a few things to keep in mind.
- Take it one step at a time. This is probably the most important thing to keep in mind. The next few months may prove to be quite challenging for you and your loved ones. Try to focus on one step at a time to keep from becoming overwhelmed or making brash decisions.
- Find the will that lists the house. If the owner of the house you inherited had a will, the process becomes much easier. The will establishes someone as the executor of their estate. That individual is then in charge of settling any debts before executing the will for beneficiaries.
- Settle through probate. If the deceased did not have a will, you will need to go through probate. Probate is the judicial process where the court tries to “prove” a will and settles the estate without a pre-existing will. Unfortunately, this process is long and drawn out. Moreover, it is one of the reasons so many inherited houses are left vacant for an extended period of time.
- Pay off any debts, liens, judgments, etc. Once the ownership of the inherited home is sorted, debts or liens on the house will need to be paid in order to sell the home. Creditors, mortgage companies, and contractors use liens to ensure they get paid. These liens prevent you from selling or refinancing the inherited house. If you know who the mortgage is through, schedule a meeting to discuss what is owed.
- Decide what to do with the inherited house. Now that you know where you stand in terms of partial or full ownership and debt owed, decide if you want to keep the house? Do you want to sell your inherited Houston house? Does it make sense to keep it as a rental? These are important questions to consider. Oftentimes, people want to sell the inherited home and use the money for their families.
Issues with Selling Your Inherited
- Feels like a hassle
- Don’t have time to find a real estate agent
- Live somewhere else and can’t manage the process
- Unsure about how to sell your house in Houston
- Too emotional of a process to handle
- Extensive repairs need to be made
Empty Houses Are Costly
Many people assume if they are not living in the home, it will not cost them anything, particularly if the mortgage has been fully paid off. Unfortunately, that is not true. An inherited home can become quite costly even if no one is living in it. You still have to pay the following –
- Property taxes
- Homeowners insurance
All of these add up and can take a toll on your finances. Moreover, without anyone in the inherited home, it slowly deteriorates over time. In turn, the value of the home can drop substantially from when you first inherited it.
Inherited Homes in Disrepair
Oftentimes, an inherited home is in rough shape because the homeowners were elderly, ill, or otherwise unable to maintain it. As a beneficiary, you are now responsible for the home. If you wish to work with a real estate agent, you will likely need to make repairs before you take it to market. Depending on the condition this could cost you anywhere from a few hundred dollars for simple handyman work to tens of thousands of dollars for serious repairs like HVAC, plumbing and electrical.
However, working with a professional home buyer, like the team at Flash Realty Solutions, can help you avoid costly repairs. Even with a good, trustworthy contractor, these repairs can be expensive. A good home buyer will evaluate the property and provide a fair cash offer, taking on the cost and time of repairs themselves.
Sell Fast to Capitalize on Tax Breaks
When you sell an inherited home quickly, you can avoid a capital gains tax. The property’s tax basis is based on the current market value at the time of the previous owner’s death. In turn, you inherit the house at the fair market value at the date of their passing.
If you sell the property, any tax you owe is based on the increase in value under your ownership. Because professional home buyers buy homes in any condition, you won’t have to make repairs before selling the home and in turn, will not be responsible for taxes on the increased value.
Selling or Renting?
Oftentimes, people have sentimental reasons not to sell their house and rent it out instead. This is a good idea for a consistent income without losing an important memory. The monthly rent can increase your income, and the property value might increase over time.
However, there are also cons to renting the inherited home. From money spent on repairs and high property taxes to refinancing the property, it can be a drain on your time and expenses, not to mention any potential damage from tenants.
Whether you keep it as a long-term rental or a vacation rental, property management is a hefty responsibility to take on. For many people, selling the property feels like the best route. It’s a good way to avoid never-ending property taxes and mortgage payments.
Should I Sell the Property As-is?
If you don’t have an interest in the property, it’s time to decide whether to sell the property “as is” or invest in remodeling and repairs. When you sell the property as-is, you only really need to clean out the property and remove your loved one’s belongings.
Typically, this is a good option when the inherited home is in need of updating or in a state of disrepair. This is because spending the money to renovate a property in poor condition may lead to more monetary loss than gain in the end.
Avoiding Hassles with Inherited Homes
When you don’t have the funds, time, or interest to fix up an inherited house for the market or to rent, we can help you sell quickly and efficiently. At Flash Realty Solutions, we strive to make the home selling process pain-free. We treat our clients like our own neighbors and pride ourselves in being fair and respectful.
If you are in probate or executing an estate, we buy houses in any condition. Our team can help guide you through the process from start to finish. When you’re ready to sell, we can ease the burden and stress of selling an inherited house. Contact us today for a no-obligation quote!
Want to Sell an Inherited Houston House?
Know the Will
If the deceased leaves a valid will with their legal advisers, the will is Testate. Oftentimes, this form of will is self-explanatory and does not require a court to settle the estate. Texas courts recognize a testate will as a binding legal document. Upon the individual’s passing, they distribute the estate according to the document. Typically, the will appoints an executor to oversee the probate process distributing the property, assets, and other inheritance.
We Buy Inherited Houses in Houston
Our team at Flash Realty Solutions aims to act as a resource for our community. We are happy to offer professional advice to help you find the best option for your family when you want to sell an inherited house. Houston residents often work with us because we offer them the empathy and dignity they deserve throughout the selling process.
Challenges and complications arise when dealing with an inherited home, and we have the experience to help you get through it with ease. When you want, or need, to sell an inherited house, give us a call at (832) 934-8856. We buy inherited Houston houses in any condition. Moreover, we close in a flash, making the process quick and simple. Contact us today for a cash offer on your inherited home.
How Do I Sell an Inherited House in Houston?
1. Identify who legally owns the property.
2. Prepare with Vacant Home Insurance
Once you establish the heir, that person takes over the maintenance of the property. This can include obtaining vacant home insurance, which protects the property against liabilities. Additionally, you have to maintain utilities, property taxes, lawn care, and clearing out the house.
Many people feel overwhelmed in this process on top of the sale of the inherited house. However, it is critical to ensure a minimum of care in order to protect the vacant home. If you simply don’t have the time or energy, the Houston home buyers at Flash Realty Solutions are available to make a cash offer on your inherited house so that you may sell as-is.
3. Find a Fair Price
For some people, the housing market is the best solution to sell an inherited home. However, many people find selling to a professional home buyer much more convenient. Here are the main reasons people choose to sell to investors.
- Cash offer
- Quick close
- No waiting for financing
- Sell in as-is condition
- Convenience of the sale
4. Take Care of the Taxes
Unfortunately, home sale tax exclusions typically don’t apply to the sale of inherited houses. Oftentimes, it takes owning the house for 2-4 years to benefit from this exclusion. While many choose to sell an inherited house immediately, others take advantage of this exclusion and decide to stay for a while.
Fortunately, when you sell an inherited house, you benefit from a stepped-up tax basis. This means that when the inherited house appreciates drastically, it prevents you from owing a substantial amount of taxes.
5. What to Expect When You Sell an Inherited Home in Houston
Hopefully, the process is quite simple. With an inherited house, Houstonians might run into many issues, but when your family is prepared, you can avoid a lot of confusion. Some common issues people need assistance with when they sell an inherited home include:
- Illegal deeds
- Undiscovered wills
- Errors in the public record
- Unknown liens
- Missing heirs
When you have to cope with the loss of a loved one, dealing with their estate only piles on additional stress. Well-intentioned family members aren’t always organized, leaving behind unknown challenges and complex title resolutions.
Here are three questions to ask yourself when you inherit a Houston house.
- Is there a will?
- Do you have an extensive family tree?
- Are there any tax issues with the property?
Having a will makes the process much more straightforward, but even then it is advisable to speak to legal counsel if the home is inherited by multiple parties and or there are any tax liens on the property. Regardless of your decision, if you need advice, do not hesitate to contact Flash. We are here to walk you through what to look for, and what options are open to you. If you are ready to sell give us a call for a no-obligation cash offer.
Selling An Inherited Houston Home FAQ
What are the tax implications when I sell an inherited house in Houston?
Unfortunately, there’s no easy answer to this question because tax implications depend on your specific situation. If you have questions about selling an inherited home, we recommend reaching out to our team for a quote.
What if multiple people inherited the house?
Occasionally, parents leave a house to their children in equal or portions of shares. If you inherited a portion of the home, all the other parties must be on board with the sale of the house.
My sibling lives in the house we inherited. Can I sell it?
When a sibling occupies the inherited house, Houston residents should consult with an attorney to analyze the will and see what their legal rights are. There may be an option to sell the house. However, your first step should be to discuss the sale thoroughly with your sibling.
If the house is full of stuff, do I have to clean it out?
Not necessarily. When we set up an appointment for an on-site meeting, we can evaluate the property and it’s condition. Oftentimes, we buy houses as-is and ask for a discount on the inherited Houston house to compensate for cleaning and repair costs.
However, we recommend you make at least one trip out to the house. This is a good opportunity to remove anything of sentimental or financial value. Another option is to host an estate sale, allowing you to sell items that others see value in for a bit of extra cash.
With that said, our goal at Flash Realty Solutions is to alleviate your stress. Take or sell whatever items you like and leave behind what you don’t. Our team knows how to handle clearing a site after we close.