Receiving an inheritance often comes with a lot of conflicting emotions. You also have a lot of decisions to make about what to do with that inheritance. If you inherit a house, this is no exception.

You might ask yourself “can I sell an inherited house?” Others will wonder how to sell an inherited house fast.

You have options when you inherit a house. However, most people will choose to sell that house. 

Read on to learn what to expect when selling an inherited house.

How Many People Are Inheriting?

If you’re the sole inheriter, then this part is much less complicated for you. This means that the deceased’s entire estate now belongs to you. 

However, most people decide to divide their estates among a few people. They might have multiple children or other family members that they want parts of their estate to go to. This means that the estate must be divided to some degree.

The first way this might happen is that you’ve inherited the house itself. You may not own the entire estate, but the land that the deceased owned is now yours. 

However, ownership of the home can also be divided between multiple people. For example, if the deceased had two children and wanted all of their assets distributed evenly between them, he or she might leave the house in the names of both children. 

Whichever way this happens, you have agreed to sell the deceased’s house rather than live in it or rent it out. You should be ready to put in some work into selling an inherited house.

Preparing the House for Sale

The good news is that the selling process for an inherited house is very similar to selling any other house. However, there are a few things to be aware of before you put the house on the market. 

Remove Personal Belongings

If there’s anything from the deceased’s house that you want to keep, then you should remove it before you put the house up for sale. Once the house is up on the market, it might become more difficult to get these items.

This is because the first thing that’s going to happen is showings. No matter how you choose to sell your house, potential buyers want to see the house before they agree to buy it. This means that you’ll have total strangers walking around the house before it goes to the closing table.

Even if you have to wait a little while to put the house on the market, it’s best to collect those items before you do. Take your time going through any paperwork, trinkets, and clothes left behind. You don’t want to rush this process, or you might forget something important.

A great piece of advice would be to put things into categories as you go through the house. This helps you determine which items you want to keep, which you want to sell, and which items you should throw away. This is the time to arrange the movement of any furniture in the house that you want to keep as well.

Hold an Estate Sale

After you’ve decided what items you want to keep, you might be wondering what to do with the rest of your loved one’s belongings. Most buyers want to bring their furniture and decor into the house when they move in. Therefore, it’s always a good idea to have the house empty by the time you want to start showing it.

At this point, most people will hold what’s known as an Estate Sale.

Similar to a garage or yard sale, an estate sale means that almost everything you see in the house is for sale. This includes furniture, clothes, dinnerware, and even holiday decorations. 

This is also something that you can think about while you’re deciding what belongings you want to keep. Bring some sticker labels and a pen with you when you go through the house. When you find items that you want to go in the estate sale, go ahead and put a sticker on it and put a price on the label.

Doing this also helps you ensure that you’ve gone through everything in the house before you put it up for sale. As a bonus, you get a little extra money before the house is even sold.

Taxes on Selling an Inherited House

The only other major difference between selling an inherited house as opposed to any other house is some tax considerations. These and your closing costs are going to come right out of your inheritance. You might want to consult a tax expert before you start making any major decisions about the house since the taxes on selling an inherited house are complex.

Inheritance Tax vs Estate Tax

Unfortunately, even inheritances aren’t immune to taxation. These tax laws are going to vary from state to state, which is one reason why you should consult an expert if you’re unsure about something. However, most states will either have an inheritance tax or an estate tax with a few states having neither or both.

An inheritance tax is paid by the person inheriting. The state determines this after the division of assets. In other words, if there are multiple people inheriting wealth or assets, then they each pay a certain percentage of their inheritance in taxes.

On the other hand, an estate tax comes from the total wealth of the deceased at their time of death. It is a lump-sum tax that happens before the division of assets. Once the estate pays this tax, then the assets are divided up accordingly.

Again, you should be sure to research your state tax laws regarding inheritance before you do anything.

Home Sale Tax Exclusion

In many cases, those selling their homes get to take advantage of a home sale tax exclusion. If you have lived in a home for at least two of the last five years, then a certain amount of your proceeds from a home sale is excluded from taxes. This is up to $250,000 for a single person and $500,000 for married couples.

The issue that comes up a lot with inherited houses is that the inheriter doesn’t usually plan to live in the house for two years. This means that the home sale tax exclusion doesn’t apply to the sale of the inherited house.

You might decide to live in the house for two years to avoid paying that tax. Otherwise, you should expect to lose some of your proceeds to the home sale tax.

Stepped-Up Taxes

Since you’re most likely going to pay the home sale tax exclusion on the proceeds of the sale, it’s important to know how that’s calculated. 

In any other home sale, the proceeds are calculated based on how much the house was originally purchased for plus the costs of any renovations made to the home by the seller.

Since an inherited house usually isn’t in the seller’s possession long enough for such improvements, the proceeds are calculated differently. In this case, they’re based on the fair market value of the home at the time of the previous owner’s death. This is to protect the inheritors from owing large amounts of taxes from the sale just because the house has gone up a lot in value.

Keep your eyes on laws surrounding this, however, as the current Biden Administration is attempting to have these tax laws changed or repealed. This is another reason why it’s important to consult an expert early.  

Reporting Sale Proceeds

Finally, even if you don’t need to pay taxes on the home sale, you still have to report the proceeds to the IRS. This is just so that the IRS knows exactly what you should be paying and how reasonable it is. Unfortunately, you also have to calculate this number on your own. 

Fortunately, it’s not as difficult as it might sound. Some people already hire someone to help them file their taxed anyway, and this can just be added to your file with that professional. Those that don’t hire a tax expert simply need to look at the IRS website to determine how to calculate their proceeds and which forms they’ll need.

If you have questions, there is no shame in asking a professional for help. Understandably, taxes get confusing for a lot of people. the worst thing you can do, however, is nothing at all.

Start Selling an Inherited House Today

Again, the main things that you should be aware of when selling an inherited house are the tax implications and ensuring that belongings are removed from it. Otherwise, the selling process is pretty much the same as any other house sale. 

You can even sell your house to us at iBuyer.com and be done with the house sale before you even know it. All you have to do is enter your address and answer a couple of questions. Then you’ll receive a free no-obligation offer on your inherited house.

The post Selling An Inherited House: All You Need To Know appeared first on iBuyer Blog.

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Are you thinking of selling your home? Perhaps you’ve got a lucrative new job or transfer to another city, or you’ve changed priorities and interests. Or maybe your family has outgrown your current house, and you need to find a larger home.

Whatever your motivation is, selling a property has never been plain sailing. For a smooth and successful selling process, you’ll need to learn tips for selling a house.

When selling a property, you’ve got so much to do. From preparing your home for sale, staging it, decluttering, depersonalizing, and decorating. And don’t forget to hire a realtor, inspector, home appraiser, and more.

Well, without prior background experience, selling a home can be time-consuming and stressful. However, in this significant transaction, you’ve got no room for error. The goal is to sell your house as fast as possible and get a top dollar for it.

But to achieve this, there’re several things to do when selling your property. Read more to learn 15 crucial tips for selling a house to get you started.

1. Take Care of the Landscape

You already know the first impression is the last impression, right? Well, no matter how good your home’s interior is, potential buyers already have an impression before walking in. And remember, you don’t have the second chance to make a first impression.

During showings, you’ll want to make prospective buyers feel warmly welcomed and safe. To achieve this, spruce up your landscape with brightly colored flowers or well-trimmed shrubs. And regardless of how much you spend enriching the curb appeal of your property, rest assured to get a hundred percent return.

However, you don’t have to spend thousands of dollars, hire a professional or install a pool or water fountain. All you need is tidying up your outdoors and ensuring it looks neat and very alive. Remember, in real estate sales, first impression matters; make a good one.

2. Remove Clutter

Decluttering is one of the most cost-effective tips in selling your property. By making your home clutter-free, you maximize the perceived space, making your home look bigger than it actually is. With more clutter, your space might feel squeezed and uncomfortable, and that’s not what you want.

One of the best ways to declutter is checking through all your belonging and clearing everything that is not essential. Whether it’s extra furniture or clothing that you no longer use, you can get your home ready for listing by donating to charities. By checking around, you’ll find numerous charities that can take the stuff away without any cost on your behalf.

Just in case you don’t feel like checking through everything you own and sorting them, at least put them in areas where buyers won’t check. If necessary, you may consider renting a self-storage space but don’t cram stuff into the garage or closet.

A cluttered house will make your home feel and seem a lot smaller than it is. If you want to get the best deal for your property, this might be a hindrance. Buyers today prefer bright, open spaces unconstrained by lots of personal property.

Clear the clutter to help the buyer visualize how they can use the property after buying!

3. Paint Your Interiors

As already stated, the first impression counts. Dark, drab colors will shrink space perception. Outmoded, stained paint makes your rooms appear decrepit.

However, with a fresh coat of paint, you’ll transmogrify your interiors. Well, painting your home remains one of the most significant home improvements when hitting the market; it can do wonders. But from a selling point of view, go for neutral colors when painting.

Keep in mind selling your property is not about personal preferences but what appeals to prospective buyers. As much as you want to appeal to the buyer, you don’t want to put them off with some awkward colors.

4. Put Up a Sign in the Yard

Most home sellers today focus more on online marketing overlooking the basics. Erecting a ‘For Sale’ sign on your property will inform the masses that your home is on the market. Also, it becomes much easier for potential buyers to find the house easily when in the neighborhood.

While you may want to keep your home a secret for different reasons, this is a recipe for failure. When listing your property in the market, don’t underrate the power of real estate signage.

For instance, someone might not be thinking of buying a home, but they have always wished to own a property in the neighborhood. And if they came across a home in the market in the area, they would be interested. Well, this home could be you!

5. Use Quality Photos

Pictures are worth a thousand words, even in real estate listing. Being the first thing, the masses see, they can either make or break the sale. If you or your real estate agent aren’t skilled at photography, hire a professional real estate photographer.

You’ll want to use exceptional photos to draw potential buyers’ attention and make them want to visit. In most cases, reputable real estate agents offer a professional photography package when you hire them. However, you’ll need to ask just to be sure before hiring one.

6. Consider a Video Tour

Besides photos, real estate agents also utilize slideshows and videos in a home sale. A real estate video would make the buyer even more interested in the property. Most buyers want a tour before they decide to visit, and a virtual house tour gets the job done.

However, for a professional-grade video that will be appealing to the masses, work with experts. Hire a professional real estate photographer or ask your realtor if they offer the services. Of course, you don’t want a poor-quality video that turns off buyers in the very first stage.

7. Use All Channels in Marketing

Marketing your house makes it easier for prospective buyers to find. And the more you advertise it, the higher the chances that someone interested will come across it. However, when marketing your home, use effective methods such as online house selling.

Old school realtors may not be using new marketing tools, which might cost you a lot. You’ll want to hire one with proven and demonstrated ability to use the web in marketing properties. Also, you don’t just need a realtor with a website; the site should be visible and with high traffic.

8. Consider Good Lighting

A bright, zippy home is more attractive and inviting to the buyers. If possible, let in more natural light or add extra lighting fixtures to light up your home if it’s dim. In some cases, all you might need is a brighter bulb.

Ensure that all curtains are drawn and keep the lights on when you have a scheduled showing. Again, how you present your home matters. And while lighting might seem trivial, it could make a world of difference in the home sale.

9. Consider Professional Cleaning

There’s nothing more inviting than a spotless, organized, and squeaky-clean home. No matter how good it is, a dirty home will turn ay buyers at first sight. And even though you’re used to cleaning your home, hiring a professional ensures it’s looking its best.

A professional house cleaning company will perform a deep clean to leave your home sparkling clean. They’ll pay close attention to your bathrooms and kitchen, where buyers pay closer attention to. Also, these professionals will reach every nook and cranny to ensure your property is appealing to potential buyers.

10. Conduct the Necessary Repairs

To sell your home fast, you’ll need to address repairs that may derail the process. Arguably, conducting multiple renovations might be a bad investment since you may not get your money back. However, if a realtor advises you to fix a leaking sink/toilet, faulty wiring/pipe, or a noticeable stain in the ceiling, do it.

Some of these trivial issues could make a buyer demand a lower price or, worse, back out from the sale. This is also the case if a buyer has a home inspection and various problems are identified. Work closely with the real estate agent to know what needs repair.

If repairs are expensive and you’re under a tight budget, you may consider selling your home in as-is condition.

11. Always Be Ready to Show

At all times, your house must be in top shape for a show. Furthermore, you don’t know when a prospective buyer might come knocking on your door. If they find your home in bad condition, this might disinterest them.

Apart from keeping your home in mint condition, you’ll want to be available whenever a buyer wants a showing. Avoid leaving dirty dishes on the sink, ensure dishwashers are cleaned out, and keep bathrooms sparkling. While this might feel inconveniencing and tiring, it might be the reason your house sells fast.

12. Make the Kitchen Appealing

One of the major focuses for most home buyers is the kitchen. In fact, you’re not actually selling the house; it is the kitchen you’re selling – that’s just how important the kitchen is.

There are numerous perks of renovating your kitchen before listing your home. The good thing is, you’re assured of getting eighty-five percent of your money back and a higher home valuation. Consider updating outmoded counter-tops, faucets, cabinets, tiles, or even painting.

To make your property sell fast and get a top dollar, go the extra mile to make the kitchen appealing.

13. Be Organized

People will want a complete walkthrough in your home during showings, opening every door. Thus, ensure every room and space, including the garage and closets, is in tip-top condition for a good impression. Also, organized space helps the buyer to visualize how suitable the space is and how they can fit their belongings.

Thus, before listing, make sure your home is well organized. Also, don’t forget to maintain your home in this condition until it finds a new owner.

14. Take Your Pets Somewhere for Showings

You love and adore your pets very much, and you always want them near you, right? While you can’t imagine it, some people just don’t like pets, and you must consider this when selling your home. While you don’t want to associate with such people, they could be the ones to give the best offer.

Thus, take your pets to a comfortable and safe place, such as to your friend’s home. Also, make sure to clean any mess from the pets and get rid of their odors.

Here Are Key Tips for Selling a House

Selling your home is one of the biggest financial transactions you’ll make in your lifetime. The home selling process can be overwhelming and challenging for first-timers. Learn the best tips for selling a house for a fast sale and the best deal.

Above are the key tips for selling a house to get you started.

Do you want a cash offer for your home? At iBuyer.com, we got you covered. We help you to accurately determines the value of your house and makes an instant cash offer.

The post 14 Must-Know Tips For Selling a House appeared first on iBuyer Blog.

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