Learn More About Selling An Inherited House
Inheriting a house in Plano is a surprisingly common experience. Every year, thousands of people in Texas become property beneficiaries when a member of their family passes away.
Unfortunately, an inherited property can bring numerous challenges. Going through the traditional sales process can take a long time, requiring you to list the home, open the house for viewings, and take part in negotiations.
That’s why many people choose to sell an inherited property for cash. This approach simplifies the probate process, helps to pay outstanding debts quickly, and bypasses the need to pay large fees to a real estate professional.
Ultimately, when you sell, inherited house cash flows to you more quickly, helping to speed up the transaction process.
This article explains the inheritance process and the emotional toll of selling a family home. Then, we discuss why selling to an investor makes sense for some people and the financial benefits of a quick cash sale. Finally, we look at how our service can help you and the various property taxes and capital gains taxes you may need to pay.
Understanding the Inheritance Process in Plano
The process for inherited property can seem complicated, but that’s mainly because of the legal jargon professionals use. Once you understand it, it becomes simpler.
How Does Probate Work?
When a person dies in Texas, who should receive their property depends on their will, a legal document detailing the deceased person’s wishes. First, your probate attorney submits the will to the Probate Court. Then, it evaluates the document and decides whether it is legally valid – the probate process.
Filing for probate requires the will, a certified death certificate with the date and location of the original owner’s death, and a probate petition form. If the will is valid, the court will name the executor based on the instructions in the will. This person is responsible for carrying out the will and distributing valuable items in the estate to family members and anyone else named on the document.
What Are The Executor’s Responsibilities?
The executor must then carry out the legal process, as described in the law.
Executors must pay creditors any debts the estate owes first. These might include outstanding mortgages, credit card debts, and personal loans. Then, they must pay taxes the estate owes. Finally, they can distribute the remaining funds to recipients, which could include selling inherited property.
If you inherit property in Texas, there are income tax implications when selling inherited property, depending on the difference between the house’s fair market value and the sale price. (We discuss these obligations in more detail below). You must also pay any remaining liabilities to creditors first, including outstanding utility bills, even if these reduce the cash value of the estate significantly.
The Emotional Toll of Selling a Family Home
While the legal process of selling inherited property sounds straightforward, the emotional side is not. Many people feel strong sentimental attachments to family homes and don’t want to give them up.
For example, inherited houses serve as a backdrop for many of life’s significant milestones. You might remember them for being the place where you first learned to ride a bicycle, enjoyed parties, or indulged in hobbies.
The thought of severing those ties, when you sell inherited property, can trigger a sense of loss and pain, even if you get fair market value. You might even feel a sense of guilt or betrayal that you are selling the property of a loved one and giving up the family legacy. For many, homes are more than mere buildings, but also physical symbols of family togetherness.
Managing an inherited property can also be stressful for executors and beneficiaries. You must navigate a complex legal and financial maze, including inheritance tax, while also ensuring the property remains in a decent state of repair. Managing upkeep can be a logistical challenge, particularly if you live a long way away.
Why Selling to an Investor Makes Sense
Many people use a real estate agent during and after the probate process. However, selling an inherited house to an investor like the Genuine House Buyer might be a better option.
But why?
Faster Sale Process
Perhaps the biggest benefit of selling an inherited home to a cash buyer like the Genuine House Buyer is the faster sale process. Unlike a traditional real estate transaction which can drag on for months, professional investors can leverage a range of tools enabling them to expedite the sale. Selling to a local cash buyer bypasses market fluctuations, buyer financing issues, lengthy negotiation periods, and more. Simply receive a straightforward offer, based on fair market value.
No Need For Repairs Or Renovations
When you sell your inherited property to an investor, you also avoid the need to make repairs or renovations. Professional buyers understand the true value of inherited homes, regardless of their superficial appearance. Selling to them lets you avoid the need to refurbish them and present them in the best possible light.
Avoid Real Estate Market Hassles
Finally, you can avoid traditional real estate market hassles when you go to a professional buyer, such as waiting for the mortgage company to approve the buyer’s loan or dealing with showings. Selling an inherited home to an investor bypasses negotiations and contingencies that can further delay the sale and prevent you from having to host an “open house.”
The Financial Benefits of a Cash Sale
Besides the quality-of-life benefits of selling an inherited home to the Genuine House Buyer, you also get financial benefits.
Immediate Liquidity
Perhaps the biggest draw is the immediate liquidity. When you sell your inherited home to cash buyers, you get money straight away which you can use for other purposes. This rapid influx of funds enables beneficiaries to receive their share of the estate more rapidly, speeding closure. Contrast this scenario with conventional real estate transactions where the process can drag on for months.
Avoiding Realtor Commissions And Closing Costs
Sales to real estate investors also bypass real estate agent commissions and closing costs: fees that can substantially diminish the amount of money beneficiaries receive after the sale. Cash home buyers use fewer middlemen and simplify the transaction process, leading to more favorable financial outcomes.
Handling Existing Mortgages Or Liens On Inherited Property
Finally, cash buyers can deal with outstanding mortgage payments or liens on inherited property. For example, some creditors use inherited properties as collateral. Liens give them the right to sell the borrower’s property if they can’t repay the debt they owe. Mortgage companies also have a right to receive outstanding mortgage payments following the home sale.
Fortunately, many property investors such as the Genuine House Buyer have vast experience navigating the complexities of these encumbrances, allowing them to manage them more seamlessly. Money owed gets paid and the remainder flows to the beneficiaries.