Have you inherited property and want to learn how to sell an inherited house? If so, you’ve come to the right place. We will discuss all the steps you need to take when selling an inherited home.
Are you the executor of the will? If so, you will find out below whether the executor can sell the inherited real estate to himself. You will also learn what to do when family members, like two siblings, inherit a home together. Read on to see how to complete a real estate transaction in that situation.
Are you ready to learn how to sell an inherited house? Then keep reading!
Selling an Inherited House
It is possible to sell an inherited house, but there are certain tax implications and other regulatory issues when you try to sell a property you inherited from a loved one.
For example, you will not have a chance to start the home sale until you’ve gained ownership of the property once the probate process is over. You will need to make sure that the property taxes and utilities are covered while the probate process takes place.
Once you’ve inherited the property, you will also need to pay the inheritance tax. You will have to consider various legal topics, especially if you and several family members inherited the property together.
In that case, you may need to work with the probate court and your other family members to decide how to proceed with a possible home-selling process. You may need to follow an estate plan, which usually outlines how anything and everything inherited from a deceased person will get divided among family and loved ones.
However, you may find several instances in which beneficiaries can sell a house before completing the probate process. That may include the estate lacking enough funds to pay off outstanding debts. If the primary owner of the property or decedent passed away before naming an inheritor in a will, the real estate can get sold before probate takes place.
Besides a person’s primary residence, you can inherit and potentially sell numerous types of belongings, such as:
- Commercial real estate and land
- Investments, bank accounts, and other types of money
- Personal belongings such as furniture, clothes, cars, and more
- Stocks or bonds
- Intellectual property rights
So, can you sell an inherited property? You can sell the house for fair market value once all ownership claims get resolved and you become the official homeowner. If the will has more than one name for who inherits the property, all beneficiaries need to agree on how to proceed.
The best outcome is for all beneficiaries to agree to sell the home to potential buyers. At that point, you will need to clean and renovate the home and start working with a real estate agent. The profit from the sale will then get divided equally between the beneficiaries.
Can The Executor Sell the Property to Himself?
You will need to find out if the probate court named the executor of the will. The court will also use letters of testamentary when a will is provided or letters of administration when there is no will. When an executor is named in the will and appointed by the court, their power to proceed with all inheritance issues will depend on the detailed instructions in the will.
As such, if the will also names the executor as the inheritor of the real estate property, then the executor can essentially take ownership of the house. Once the executor of the will becomes the homeowner, he or she can then proceed with picking a home sale price based on the value of the property.
The executor becomes the new owner and can proceed with the home sale process. However, if multiple beneficiaries including the executor of the will inherit the estate, they will all need to agree. The best option is usually to sell the property with the help of a realtor and split the proceeds between all beneficiaries.
What will happen if the will doesn’t name an executor? In that case, the court will appoint an administrator of the will who has much of the same responsibilities as the executor. However, the executor must follow the wishes of the will more closely than an administrator. The administrator merely distributes all property and belongings to the heirs named in the will.
Can an Executor of a Will Sell Property Without All Beneficiaries Approving?
It is possible for an executor of a will to sell a piece of property without beneficiary approval. However, it would be less of a hassle for the executor to get all beneficiaries to approve, especially if he or she wants to sell the house fast.
The executor of the will may want to sell the real estate property without beneficiary approval to produce liquid funds so that the heirs can pay off all debts or the executor can distribute the financial assets more evenly between the heirs.
The executors of wills are likely to have full rights to sell a property without approval from beneficiaries if the will specifically instructs them to do so. If the deceased homeowner wished for their assets to get distributed via a home sale, then the executor can sell the property.
The executor or administrator may need to sell the property before the probate process is over if the will names the heirs of the property. However, all proceeds from the sale should go to covering past debts or liens and distributing equally between the beneficiaries.
Yet, there may be complications if the heirs have rights to the property according to the will and these beneficiaries do not approve of the sale. Essentially, if there is a truly compelling reason for the sale not to proceed and the executor to distribute the proceeds, then the court can prohibit the home sale.
Problems When Two Siblings Inherit a House
The most important part of figuring out what to do when two or more siblings inherit a house is to maintain honesty and transparency. A few potential issues to keep in mind when inheriting a house together are whether any mortgage payments remain and who will pay the federal estate tax and the capital gains tax.
However, the capital gains taxes in TX do not exist. Those living in Texas who inherited property won’t need to worry about capital gains taxes.
The biggest problem, however, is what to do with the property when two or more siblings inherit it. Yet, there are several options that siblings can agree to when inheriting a home from their parents or other loved ones. These options are:
- Sharing the house under a formal, written agreement
- Developing a buyout for one of the siblings using liquid assets from the estate
- Selling the property and dividing the profits from the home sale
- Renting out the house and splitting the proceeds from the rental income
- Partitioning the asset via a partition lawsuit
When agreeing to share the home, you need to make a formal agreement in which every sibling agrees to how often every individual gets to use the property, guest expectations, and how splitting utility costs will take place.
Does one sibling have no interest in visiting the house or using it in any capacity? If so, the executor of the will may complete a buyout for that sibling using liquid assets from the estate. Selling the home and splitting the profits is often the preferred option among siblings.
Renting out the home is also a good idea for those looking to become landlords. If two or more siblings cannot agree on the house, the last resort is to petition the court through a partition lawsuit to push for a home sale.
How to Sell an Inherited House
Selling house by owner in TX is relatively straightforward even when you have inherited a home. If you have inherited the property by yourself and the probate process is over, you can sell the place much like any other real estate. Yet, if you inherited the residence along with other family members, you will all need to agree to sell the house and do so as a group.
The basic steps for completing the home sale include:
- Cleaning and repairing the house including painting the walls
- Finding a realtor and picking a home sale price
- Completing home showings and an open house
- Accepting an offer on the house
- Completing a home inspection
- Attending closing to sign paperwork and cover closing costs
The information above should show you how to sell an inherited house. You may need to agree with all beneficiaries to sell the place and split the proceeds. Also, siblings should work out all issues if they inherit the house together.
After inheriting property, are you looking to sell a house fast in San Antonio? If so, your best bet is to find a cash buyer who will provide you with a fair cash offer.
Cash home buyers in Live Oak can finish a home sale in a few weeks since they won’t need to apply for a mortgage loan. They can also buy the property in its as-is condition, so you won’t waste time on renovations. We buy houses Texas tourists adore, so call us today!