There are three things you can do with an inherited home; move into it, rent it out, or sell it. Of the three options, selling the property is the easiest and the cheapest option. Here’s why you should consider selling the house to cash home buyers like us.
1. A Probate Involves Complex, Time-Consuming Legal Proceedings
The probate process is time-consuming and expensive, involving a series of legal, tax, and administrative work. Even with a legally valid will that specifies the executors and beneficiaries, it could take between three to six months before the Grant of Probate is issued. Even after the Grant of Probate notice is given, it could take around nine months to a year for the executors to administer the estate.
And if the will is unclear or disputed, the process could take even longer. You also have to pay the inheritance tax and locate missing beneficiaries.
As experienced cash home buyers in Milwaukee area, we know the legal proceedings involved with an inherited home. You don’t have to lift a finger throughout the process. We’ll take care of everything, including closing formalities.
2. Inherited Homes Involve Expensive Repairs
Most inherited homes are in disrepair because the original owner is either too old or ill to manage proper maintenance. The roof might be leaking, appliances may not have been updated, and the property could be mold-ridden and uninhabitable. As a beneficiary, you are responsible for all repairs before selling it, renting it, or moving in. These repairs are usually expensive and time-consuming. Renting the house is especially risky because, without proper maintenance, you could end up in legal trouble.
At Metro Milwaukee Home Buyer, we buy homes as-is. You don’t have to spend money on presale or after-sale repairs. Over the years, we have purchased a variety of properties, including hoarder’s homes.
3. Paying Capital Gains
Many homeowners use the step-up basis to reduce the amount of capital tax you’d owe to the IRS. Using this method, they pay taxes on the home’s value when it was inherited instead of its original purchase price. But to take advantage of this, you will have to live in the property for a minimum of two years before selling it. Moving in isn’t always feasible, especially if you live in another city or town. Besides, you cannot avoid paying capital tax gains altogether.
The best way to avoid capital tax gains entirely is to sell the house as soon as you inherit it. Then, you aren’t leaving any room for the value to appreciate any further.