A loved one has passed and now you are faced with the decision and task to sell your inherited property. Understandably this could be a very emotionally and stress charged task to deal with for anybody. Managing not only the loss but unfamiliar grounds of how to properly manage the estate sale of your inherited property in Kansas City.
It can be intimidating trying to understand what happens when you inherit a house, all the while dealing with tough financial and emotional decisions. Here we explain to you some options that you may or may not be aware of on the specific topic of how to sell an inherited property in Kansas City.
There are many factors to consider… Some common questions are:
What will it cost to sell an inherited property?
What if the Title is not clear, & what does that mean?
What if my will has not been probated?
Do I need an attorney to be able to sell my inherited house?
Who has to be involved in the decision and sale of our inherited home?
Step 1: Property Title
In order for a sale of the property to occur a “clear title” will need to be achieved that is insurable by a Title Company. Having a clear title means is that the person (or persons) selling the house has the full legal right to sell. In the case of a death, the first step is to perform and understand a preliminary title search with a reputable title company. This step can also be done for free as part of a Purchase and Sales Agreement between a buyer and seller during the escrow process.
Based on the preliminary title search results all of the details of title that need to be addressed for it to be considered clear will arise and working together with the title company and attorney clear title could potentially be achieved.
2nd Step: Managing The Estate
Now what about the status of the Estate…
Without going into great depth, if the deceased left a Will naming a person as Executor of the Will, that person is able to make decisions regarding the sale of the property. If there was no Will at the time of death, either the Courts will appoint an Executor, or in some instances the surviving heirs can sign an Affidavit of Heirship.
As you can imagine, having the Courts appoint an Executor can be time consuming and expensive. An Affidavit of Heirship is a good option that can save time and money, if all heirs agree regarding the sale or to who the property belongs.
We highly recommend seeking services of professionals that manage this type of cases in a daily basis since it is a focus area that deserves the utmost highest regard of competency and quality of service in such a situation like an inherited home in Kansas City.
3rd Step: Consider All Factors
When you inherit a house, you need to consider these three things:
The financial & legal responsibilities of the inherited home, including debt obligations.
The tax liabilities of the inherited home, including federal estate taxes or capital gains.
What to do with the home, which could include moving in, renting it, or selling it.
What is the condition of the property?
The condition of an inherited property often impacts what people decide to do with it. If the property hasn’t been maintained, it could need expensive and time-consuming repairs. Coordinating a renovation is a big task and should be carefully considered before deciding whether to keep the house or sell it.
Additionally, the new owners become responsible for paying taxes, property insurance, and upkeep on an ongoing basis. For some, these responsibilities are too much, it may be easier to sell the home as-is. For others, it may make sense to fix up the house and keep it.
Selling the house
As difficult as it may be, sometimes the best option is to sell the house. This can provide cash immediately and remove legal and financial responsibility related to owning the house.
While you may be able to sell the house for a profit, you need to take into account the costs associated with the selling the property. In normal circumstances homeowners spend $15,190 to sell their house, and that is before considering any added costs associated with inherited properties like court fees or debts.
Any outstanding debt obligations, such as a mortgage, that need to be paid.
The cost to fix up the house to get it ready to sell for top dollar.
Closing costs and fees.
Real estate agent commissions.