We buy houses in Houston, Texas and know that inheriting a house can bring up a lot of emotions. If you’ve suddenly inherited a house, you may not be prepared for the questions and issues that can arise. And if you make the wrong decisions, you will likely encounter financial, emotional, and family problems before long. Trying to decide whether to sell your inherited house in HOUSTON can be frustrating. You inherited a property now lets answer – “Should I sell my inherited house in Houston?”
We’re seasoned professionals in Houston real estate, and we’re looking to buy houses every month in the Houston area. We get calls from those who are going through probate or have inherited a house and are looking to sell it… so the info below are some tips to help you figure out the process.
Keep a Few things in Mind
Is There A Use For The Property?
The first thing to think about is whether there is a use for the house. Holding onto it for sentimental reasons is fine if that’s what you want to do, but don’t feel as if you are forced to keep it. Only keep the property if you have a sincere use for it. There is no sense in holding onto a property that will just end up sitting there.
Don’t Forget About Taxes
Most people don’t have to worry about estate tax because of the very high exemption (in the millions), and the estate tax was even temporarily suspended on 2010. But also mostly suspended in 2010 was the step-up provision. So in considering what can go wrong when you inherit a house in TX and when you intend to sell it, you need to consider the stepped-up capital gains situation.
The step-up provides that you pay capital gains taxes only on the gains above the fair market value at the date of the decedent’s death. It has nothing to with the price the decedent paid for the house – unless the step-up falls in one of the years when it was changed. In that case, you may owe a lot more in taxes than you bargained for.
Is There A Mortgage On The Property
Generally in the past, when an elderly parent or relative passed, the mortgage on their house was paid off. These days, though, it’s common for elderly people to take out a reverse mortgage on their home to supplement insufficient retirement funds.
You need to be aware, then, that a reverse mortgage cannot be assumed by heirs. And in the case of a standard mortgage, you can assume the mortgage only if you live in the house yourself. So if you intend to rent the house, you may have to refinance it in your own name.
Are There Other Joint Heirs?
What if you’re not the only heir? That can be a problem. Suppose you and your siblings inherited the house jointly. If you want to sell it, your brother may want to rent it, and your other brother, to live in it himself. You can see what a powder keg waiting for a spark this is. If there are other owners of the property, you will all need to sit down and come to a consensus. Work together to decide if the home should be kept or sold. If there is an odd man out, consider buying them out as not to cause further disagreement. Remember, it is just a house, and the person who passed it down to you would never want to see their gift become an argument.
How Much Is your Property Worth?
It is important to know how much your house is worth, before you make all of the plans for what you want to do with it. We can help you figure out how it’s value based on a CMA, and let you know what some good options are for it. It may make sense to keep it as a rental if you are interested in that. Or it may be too expensive and you would just lose money every month. Let us show you.
If You Sell, How Much Will You Spend Upfront?
If the home has not yet been cleared out, that should happen first and foremost. A traditional property listing will come with some upfront costs. You’ll likely need to make some repairs to the house and have it professionally cleaned. It’s tricky making repairs to a house you’ve never owned. You may not know what you’re getting into. You don’t want to find yourself down a rabbit hole, spending thousands and thousands on a house you want to sell anyway. Depending on how you decide to sell, you could face not only repair costs but costs for marketing too.
Housing In Houston Is Slowing Down
If you haven’t kept up with the market, things have started to slow. There are many more houses on the market now and are taking much longer to sell. A lot of this has been based on the expectation that there will be a recession in the next year or so. Many people were hit hard in the last recession and are now being very cautious, as they should be.
Look At Your Options
Sometimes the right answer isn’t to sell or to rent, but to actually do both. With a lease option you can potentially do that. This is somewhat complicated, but we can help you do this.
Get Cash For Your House In Houston
When you sell your inherited property to Brilliant Day Homes, you will not need to spend anything out of pocket. Nor will you have to pay expensive commissions, agent fees, or administrative costs. By selling the property directly, you will be able to quickly receive your profits and move on from the house without spending months making repairs and waiting for the property to sell. Find out more about how we help others in the community.