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Inheriting a property from a relative or close friend can be an extremely emotional process. On the one hand, you’ve likely just lost a loved one and are navigating your own personal grief. On the other hand, selling the property may well give you the opportunity to provide your family with financial security, providing an unexpected blessing amidst your loss. We’ve simplified the process for you by creating a step-by-step guide to help keep you from feeling overwhelmed during the process of selling your inherited property in Indiana. Read on to get started.
Confirm You Can Sell the Home
Start off by making sure the deceased person’s financial affairs are settled and in order before even thinking about selling the home. Your best bet is to consult a legal or financial advisor to ensure you’ve done your due diligence in the process. For example, in Indiana, creditors who are owed money from the deceased must make a claim within three months of after the date of the first published notice to creditors or three months after the court has revoked probate of a will, whichever is later. That means you need to wait at least that long before putting the home on the market in case the property proceeds are needed to repay a creditor. Also check for any liens against the property, because you’ll be required to settle those as well.
Determine Tax Implications
Another important part of selling an inherited home is figuring out the potential tax implications from the profit you receive on the sale of the property. Unlike your primary residence, you’ll have to pay capital gains tax on the profit above the home’s value at the time of the original owner’s death, not the value when that person bought it. This means that you have to pay taxes on the home value minus the sale price. So, if your mother’s home was assessed at $250,000 when she died and you sell it for $275,000 you must pay taxes on the $25,000 profit.
Clear Out Personal Belongings
Once you have the green light to sell the inherited property, you need to start the process of clearing out the deceased person’s belongings. You can certainly keep some furniture in the house if you think it helps show off the home’s features, but otherwise you should de-personalize the space as much as possible. This is hard enough when selling your own home, and can often be a difficult task if you were close to the person who passed away. Don’t rush yourself through the process, but also don’t cling to too many possessions. Select a few meaningful treasures to keep, then pass the rest on. If you want to sell everything in a hassle-free way, hire an estate sale company. They’ll take the reigns in advertising, pricing, and facilitating the previews and you simply pay them a percentage of the profits. Alternatively, you can call a local donation center to pick up large pieces you’d like to give to charity.
Decide How to Sell Your Property
The most traditional path when dealing with an inherited property is to sell with a real estate agent. They can help you price the home competitively based on neighborhood comps and also take care of advertising and showings. However, most real estate agents collect 3% of the sales price, plus you’ll have to pay an additional 3% to the buyer’s agent. That’s a total of 6% of the final sales price, not including any closing costs you must pay on both your side and potentially the buyer’s side if that was part of the negotiation.
Another option you have is to sell your inherited property directly to Solid Rock Houses. We offer the same expertise as a real estate agent, but without the extra time and hassle of listing a home on the market. We provide all cash offers that help you avoid expensive real estate agent costs. This is also a convenient situation when several family members must split the proceeds. Additionally, you don’t run the risk of the sale being contingent upon someone else’s financing.