Inheriting a house is sometimes a welcome experience. The beneficiaries of the deceased’s home may choose to move in immediately or rent it out to earn passive income. However, selling a house that you didn’t buy may seem appealing if you don’t want to become a landlord to turn the property into your primary residence.
Can you sell an inherited property? As leading cash home buyers serving the Lehigh Valley, PA, area, Homerun Home Solutions LLC hears this question often. Below, we will answer it for additional clarity.
Do You Have To Go Through the Probate Process When Selling an Inherited Property?
Receiving an inheritance is sometimes a complicated ordeal, especially when it involves a house. To ensure beneficiaries receive what they should and they follow the final wishes of the decedent, estates must go through probate. The courts will assign an executor of the estate who will ensure everyone gets their assigned assets and that nothing goes to waste.
Having a will that clearly defines who gets what upon a person’s passing may streamline the estate distribution process. However, the legal probate process will occur with or without a will according to each state’s laws and practices regarding inherited property.
Possible Tax Implications of Selling a House You Inherit
Can you sell an inherited property? A sale is possible if you are the homeowner, but it could trigger estate taxes. Property owners typically have to pay an inheritance tax if they sell the property for a gain.
Some heirs can avoid paying taxes when they sell inherited homes. Step-up in basis allows properties of deceased persons to adjust to their fair market value on the day of their death instead of when the property exchanged hands.
You also have to consider capital gains taxes when determining what to do about the inherited property. The capital gains tax rate can range from zero to 37%, depending on several factors, including the homeowner’s income, the duration of ownership, and whether the house is their primary residence.
Selling an Inherited House With a Mortgage
Can you sell an inherited property with a mortgage? You can, but if the decedent was the only person living in the home, the estate is responsible for continuing the loan payments.
If you’re the heir, you’ll assume financial responsibility. Still, you can explore selling options once you get the home and the loan in your name. If there isn’t a mortgage, you’re still responsible for property taxes and utilities until the sale.
Need To Sell an Inherited House? We Can Help
Can you sell an inherited property? A home sale is possible, but you could face several tax implications if you sell the property. Working with a cash home buyer like Homerun Home Solutions LLC helps streamline the selling process, ensuring you can close on the property in a couple of weeks instead of several months.
Our team at Homerun Home Solutions LLC is always available to assist with home selling in Lehigh Valley, Pennsylvania. Contact us at (484) 246-4894 to get a fair cash offer for your home. You can also learn more about us by browsing our website.
