Many times people inherit a house after suffering the loss of a family member. People who inherit a house need to learn a lot about the implications of inheritance and what to do with that acquired property. You should consider multiple factors in case the house comes with a mortgage or the kind of taxes you would now be expected to pay.
If you are still in the struggle of now knowing what to do with that inherited property, there are three options for you to choose from. You can move in, rent, or sell. Keep reading if you want to learn more information about the best option to take in your situation.
First Things First
It’s not easy to decide what to do with your inherited house right away. Experiencing the loss of an essential and close family member is difficult. It’s normal to feel confused and a mix of emotions at the time. In a way, you might feel like moving into the home could be the right thing to do, but it might also be too much for you to endure long-term, especially if you already own a house.
What To Know About Inherited Properties
The best way to move forward with a house inheritance is to learn more about your options. Do you know if you need to pay inheritance taxes after inheriting a house? This piece of information might be critical for any decision you’re considering.
When you inherit a house, you don’t have any automatic tax liability. However, if you decide to move in, rent it, or sell it, you can obtain property taxes, capital gain taxes, or other expenses.
Capital gain taxes are taxes you pay to the federal government after profiting from the sale of an investment. So it’s the difference between what someone paid for your inherited house and the amount you sell it for. But when you inherit a home, you’re protected in most cases by the step-up taxes basis.
With a step-up tax basis, you’ll inherit the home at the fair market value on the date of inheritance. You should only expect taxes on any gains between the time of your inheritance and the time you decide to sell it, if that’s your choice.
You don’t need to worry about how much your family paid for the house back then. Luckily, you only need to worry about the actual market value.
You Can Move In
If you decide to move to your inherited house, you better be aware of all the expenses you should expect from now on. If you have a mortgage payment or not depends on different factors such as:
- Due on sale clause
- Reverse Mortgage
- Mortgage paid off by the estate
- Underwater properties (if your inheritor owed more than what the property it’s worth)
Even with or without a mortgage, you are stuck with repairs and maintenance for a property that might be old and deteriorated. You also need to think about fees from the Homeowners Association and the yearly property taxes you must pay as you become the new owner.
If you feel like renting your inherited property is the best option, you still need to consider spending your budget on repairs and maintenance. You need to make sure your house is ready to compete in the rental market. Usually, renters care more about details that bring comfort to the home right now instead of in the long run. So you will probably be spending thousands of dollars on redecorating the house to give a new and more appealing look to it.
Selling to a Cash Home Buyer
When you decide to sell your inherited house in Charlotte, NC, you usually need to worry about spending time and resources on various steps. Some of these steps include, listing your place on the MLS, hiring a realtor, and numerous legal preparations. But when you sell to a cash home buyer like Opening Doors Properties, you don’t have to worry about any of those stressful requirements.
If you sell your inherited house in Charlotte to us, you don’t even need to spend any money on fees, commissions, or closing costs. We’ll make you a fair all-cash offer and buy the house directly from you. Not only do we offer cash for your property, you can have it in your hands in as little as seven days. With us, you can sell your inherited house today.