Updated: Sep 19
It's not uncommon for families to inherit property from loved ones. If you find yourself in this situation, you may be wondering what to do next. Selling inherited property can be a complex process, so it's important to understand all of your options before making a decision.
If you're thinking about selling inherited property to family members, there are a few things you should keep in mind. Below are the 8 things you need to know about selling inherited property to family.
Know where the mortgage stands
Before you can even think about selling the property, you need to know where the mortgage stands. If there is an outstanding mortgage, you'll need to pay it off before you can sell the property. You may be able to include the mortgage in the sale, but this will likely reduce the amount of money your family member is willing to pay for the property.
Get a professional appraisal. Once you know where the mortgage stands, you'll need to get a professional appraisal of the property. This will give you a good idea of how much the property is worth and help you set a fair price when selling to a family member. It's also good to understand the tax implications. Selling inherited property comes with a few tax implications that you'll need to be aware of.
Anticipate your ownership timeline
When you're selling inherited property to family, it's important to have an idea of how long you plan on owning the property. Selling the property outright may be the best option if you don't plan on living in it or if you need the money right away. However, if you're planning on keeping the property for a while, selling it to a family member with terms may be a better option. This will allow you to keep the property in the family and give your family member time to come up with the money.
Coordinate with all heirs to nominate a personal representative
If there are multiple heirs to the property, it's important to coordinate with all of them to nominate a personal representative. This person will be responsible for handling the sale of the property and distributing the proceeds. Selling inherited property can be a difficult process, so it's important to have someone you trust in charge.
The Probate Process
The probate process can be complex, so it's important to get familiar with your state's probate laws before selling inherited property. Selling property during probate can be tricky, so it's best to work with an experienced attorney who can guide you through the process. If the property is held in a family trust, things can get a bit more complicated. Selling property held in a trust often requires court approval, so it's best to work with an experienced attorney if you're in this situation.
Consider selling the inherited house for cash
If you're looking for a quick and easy sale, selling the house for cash may be the best option. There are a number of companies that specialize in buying inherited houses for cash. These companies will often make you an offer within 24 hours and can close on the sale within a week or two. Selling your inherited house for cash is a great option if you need to sell quickly and don't want to deal with the hassle of listing the property.
Selling an inherited house can be a complex process, but it doesn't have to be. With Atlas Property Investors you can make sure that the sale goes smoothly and you get the best possible price for your property.
Partner with an agent who does probate
If you're looking to sell the property the traditional way, it's important to partner with an agent who has experience with probate sales. Selling a house during probate can be tricky, so it's important to have an experienced agent on your side. Get familiar with your state's transfer tax laws. When you're selling inherited property, it's important to get familiar with your state's transfer tax laws. These taxes are often imposed on the sale of inherited property and can range from a few hundred dollars to several thousand dollars. In some states, these taxes are due at the time of sale, while in others they're due when the property is transferred to the new owner, so make sure you ask your agent what the laws are in you state.
Tax Liability And Fair Market Value
When you're selling inherited property, it's important to understand the tax implications. Selling the property will likely result in a capital gain or loss, which is taxable. The amount of tax you'll owe will depend on the fair market value of the property at the time of sale and your personal tax rate. It's also important to understand that if you sell the property for less than its fair market value, you may be subject to a gift tax. To see the probate laws in Mississippi and see your tax implications click here for the Chancery Courts of Mississippi website.
Selling an inherited house can be a complex process, but it doesn't have to be. With Atlas Property Investors you can make sure that the sale goes smoothly and you get the best possible price for your property. Contact us today to learn more!
No matter what you choose to do, make sure you take the time to think about your specific situation and what will work best for you. There is no one-size-fits-all answer when it comes to selling inherited property. If you're feeling overwhelmed, don't hesitate to reach out for help. There are a number of professionals who can assist you with the process, from investors to attorneys. Make sure you get all the information you need before making any decisions. Selling an inherited house can be a complex process, but with the right planning and advice it can be a smooth transition for your family.
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