So you have inherited a house!?
Many consider inheriting a house a windfall. However, the reality is that you may be inheriting a sinking ship that you’ll be responsible for. Inheriting of a property isn’t always financially beneficial. Often, properties left to the heirs are older and in need of significant repairs. Time can definitely take it toll on a house… foundation issues, roof, windows, HVAC, etc..
In addition to the stress of handling the repairs, there is usually a lot of “stuff” that gathers in a house over the years. The executor is typically the one that goes through their belongings and sorts thru what the heirs may want to keep then figuring out what to do with the rest..
Read on as we explore five things you should know about inheriting a property in middle TN.
Debt
Unfortunately, many people also inherit the debt associated with the property. Any thing from unpaid taxes to liens and multiple mortgages. Assessing where you stand with any debtors, is the first step in dealing with your inheritance.
Taxes
While inheriting a property doesn’t necessarily trigger more tax liability, you should know that your decisions about what you do with the property very well may. Should you make improvements, you can write these expenses off. There are also property taxes to consider; if they aren’t a part of an existing mortgage payment, be sure to familiarize yourself with any deadlines. Inherited property is subject to a step-up-basis adjustment in the value of the property upon which your capital gains taxes on any growth moving forward are based.
Maintenance Costs
As houses age, maintenance costs typically become higher. Allowing routine maintenance to go unperformed can quickly escalate into significant issues. In addition, some homes have features that have become obsolete and require specialized knowledge for proper care. Hence, it’s better to call in an expert for unfamiliar equipment.
Repairs
If you decide to keep the property or tackle it yourself it would be a good idea to have a professional inspection and get estimates from at least three reputable and qualified professionals. This will allow you to see just what you’re up against. Often times, when opening up a section of the house for one repair, other issues come to light, so keep extra funds on hand to cover unexpected expenses during the repair process. Remember, too, to request an estimate of the time you’ll be holding onto the property until it’s ready to be lived in or sold.
Listing on the MLS
Listing on the MLS usually includes clean out of the property, initial inspections, repairs, professional photographers, marketing, and showings. Once a buyer comes along you typically have additional inspections, additional repairs, hoping the buyer qualifies for a loan, followed by real estate commissions, and closing costs. Real estate agents can’t guarantee a closing date, so you may end up holding the property longer than expected.
Or, you could avoid all the hassle and expenses by contacting the experts at Provision Homes, LLC. They will make you a fair as-is cash offer for your house. The folks at Provision Homes, LLC have been buying estate properties for over a decade so they know the steps that need to take place in order to get the house sold with as little hassle as possible. Also, don’t concern yourself with the clean out. Take what you want and leave the rest behind, we will deal with it. At Provision Homes, LLC, we lay it all out on the table. We take the time to listen to your needs and answer any questions you may have, so you can decide what’s best for your situation. Contact Provision Homes, LLC at (615)-310-1909.