How to Sell the House You've Inherited

Inheriting a house may seem like an unexpected gift, but in reality, it can be an added burden to many family members, especially after losing a loved one. So, what if you want to sell it? 

Selling After Inheriting a House

There are some major components to consider when selling an inherited home. First, is there a will? Second, are you the only beneficiary?

You will first need to get the house in probate. If there is a will, this will help guide the executor of the will through the process. You’ll determine if the estate is considered small or regular. Conversely, if there is no will, or if there are disputes with the will, the estate will have to go through a judicial probate process.

When you are inheriting a house, you will need to determine if the estate is recognized as small or regular by the state, and the total of all assets needs to be determined and provided to the state. Small and regular estates have different sets of requirements for the provision of assets. There are complex tax requirements for heirs of estates, so it’s essential to get legal advice on the details of the taxes that are required on the estate. 

Multiple Beneficiaries Inheriting a House

If there is more than one heir to an estate, the remaining assets will be divided. If there is a valid will, the estate will be divided according to those instructions. For an estate without a will, a personal representative will be appointed, at which point the remaining assets will be divided evenly. It is much less costly if the beneficiaries are able to come to an agreement about the sale of the home on their own or through a mediator. It could also potentially lead to a faster sale.

How to Sell a House You Have Inherited

When you are finally ready to sell the house you’ve inherited, you should be aware of the Step-Up basis rule. For example, Susan purchased her home for $130,000 in 1999. She passes away in 2010, at which point her home was valued at $230,000. If her beneficiary sells the home for $250,000, they would pay taxes on $20,000, not $120,000.

Beneficiaries pay taxes on the difference between the sale of the home and the value of the home at the time of the owner’s death.

About Alberti Home Buyers

At Alberti Home Buyers, we are knowledgeable and experienced in buying homes. We can get you a straightforward cash deal on the home you’ve inherited. We make it easy with our efficient four-step process. We’ll gather some information about your situation via our quick online form, do a thorough on-site value assessment of the property, make you an excellent cash offer, and leave you time to decide if the offer is suitable for you. Contact us today to get started!