Coming into your inheritance can bring a whole bag of mixed feelings. On the one hand, there is happiness to be found in what you’ve been given. On the other hand, there may be feelings of sorrow, depending on the reason for receiving the inheritance. There can also be a certain amount of stress that comes with deciding what to do with your inheritance. If it involves property you want to sell, there are some steps you’ll need to take.
Ownership of inherited property isn’t always a cut-and-dried deal. It can be especially complex if multiple people are listed as the beneficiary of the property. According to Rocket Mortgage, it is possible for multiple siblings to own a single property, though that can be a little complicated. Each beneficiary will need to be consulted and be in agreement in regards to what to do with the property before it can be sold. If you are the sole beneficiary, however, you shouldn’t need to consult with others before selling it.
If the decision is made to sell the property, it’s a good idea to have an inspection done to get a better feel for what condition the home is in before listing it. According to J Bixler Inspections, mold is a very real concern, especially in parts of the home that are prone to damp conditions. Bathrooms, kitchens, and basements are often the most common culprits. Having an inspection done gives you a better idea of what repairs or maintenance needs to be done to get it ready to sell, or if it’s good to go as is.
Have a Plan for Taxes
Deciding to sell inherited real estate means there’s a chance you’ll be dealing with taxes. If you end up selling the property for more than the fair market value of the property, you’ll be paying taxes on the amount that exceeds the fair market value. Because of this, there’s a chance that you won’t actually pay taxes on what you sell the house for. According to Magnify Money, if you do end up with an amount that will be taxed, be sure to take a good look at the two types of capital gains so you can make the best decision for your circumstances.
Selling inherited property can be a great way to turn an asset into a great resource. The process is a bit more involved than it is if you were to sell your own home though. If you need advice or guidance, be sure to talk to a qualified lawyer who can help you through the process.
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