Inheriting property can be a blessing, but it can also be a burden. If you find yourself in the latter situation, you may be wondering how to sell an inherited property without hassle. One of the main reasons for considering it a burden is the involvement of your children and other family members. But no worries, we have everything gathered for you!
Selling an inherited property will never be a daunting task when you know all the requirements and processes.
How To Sell An Inherited Property Without Hassle
The good news is that it is possible to sell your inherited property without too much trouble. Get everything ready, including the estimated capital gains tax price and important documents required for selling an inherited property. Here are a few tips to make the process as smooth as possible:
- Know The Actual Property Value
Before discussing or deciding anything about the inherited property, find ways to know its value. Online apps for home value estimation can help, but the wisest way is to ask about a real estate agent or contact any nearest home buying company.
- Get In Touch With A Real Estate Agent
If you’re not sure how to go about selling your property, a real estate agent can be a big help. They will be able to give you advice on the best way to market and sell your property. Before choosing one for your task, always check their track record and success rate.
- Make Sure All The Paperwork Is In Order
When you’re dealing with inherited property, there is often a lot of paperwork involved. Make sure that everything is in order before you start trying to sell the property. This will make the process a lot smoother.
- Be Prepared To Negotiate
Inherited property is often worth more than market value because of sentimental value. However, you should be prepared to negotiate the price if you want to sell the property quickly. There will be a chance that the buyers will try to get benefits from your emotional situation, so brace yourself before every meeting.
- Be Patient Throughout The Process
Selling an inherited property can take some time. Don’t get discouraged if it doesn’t happen overnight. With a little patience, you will eventually find a buyer who is willing to pay your asking price.
Capital Gains Tax On Inherited Property:
Capital gains tax is a form of tax applied when an inherited property is sold. It’s a tax on the increase in the value of the house. So, if the inherited house is worth £200,000 but sells for £250,000, you’ll only have to pay fees on the £50,000 profit.
Ways To Avoid Capital Gains Tax On Inherited Property:
- Make the Property your personal residence
- Gift the property to someone or sell it right away
- Turn the property into a rental property
- Consider a 1031 exchange and get a new property
What Are The Expenses Cost For Selling Inherited Property?
At the following points during the sale, you must pay a certain cost:
|Inheritance Tax: If the asset’s value exceeds £325,000, an inheritance tax is applicable. It is the only key expense you must pay at any cost!|
|Property Evaluation: You have to pay a property evaluation company or may hire a surveyor for this task. You can’t sell a property without knowing its value.|
|Agent Fees: To market the house and find potential buyers, an agent will help you. For this, you must hire him until the sale procedure is complete.|
|Outstanding Bills: As you are going to be the owner, all the outstanding bills should be taken care of. It includes debts, taxes, and other insurances.|
|Repairs Cost: All the necessary repairs required to make the property presentable for sale needs to be paid.|
You have to decide wisely what to do with the inherited property. Above mentioned solutions will help you a lot, but when it comes to selling property that has been inherited, many people find the process to be quite difficult.
However, there are some companies that specialize in making this process easy for people, for example; His and Her Investments. Their work is remarkable, and you never feel selling a hectic procedure. They will often times provide a free consultation in order to help people understand the process and what to expect.
Frequently Asked Questions While Selling Inherited Property
-What are the documents required to sell an inherited property?
➢ Deed of Sale
➢ BIR Certificate of authority to Register the Sale (after payment of capital gains or withholding tax and documentary stamps)
➢ BIR confirmation receipt for capital gains/withholding tax and documentary stamps
➢ Transfer Tax receipt (from heirs to buyers), and
➢ Articles of incorporation and board resolution (if a buyer is a corporation)
-What is the fastest method of selling an inherited property?
You can contact any cash home buying company and sell your inherited house as-is. There is no need to spend dollars on repairing or upgrading any house.
-Can I sell an Inherited property without going through the probate?
In most cases, it is mandatory to file for probate if you want to sell an inherited house. It doesn’t matter if you have a will or are the only person who can be the owner; the probate process is a must.