Inheriting A Home?

What Do You Do Next?
1. Sell it
2. Move into it
3. Rent it out

If you are a renter now it maybe a good idea to move into it. But if you have siblings you can run into so complications, you may only own a percent of the home. At that point you need to buy out the others or pay them rent. If you decide to make a rental out of the home and turn the home into a income property you should think long and hard about this especially if you don’t already have rentals. As a Realtor for over 20 years if you have not been a landlord before this can be a costly and very time-consuming business.

Selling is often preferable if you or your siblings nee the money right away. If the home has appreciated significantly since your family had purchased it, you won’t pay capital gains tax because the home is stepped up to “Market Value” at the date of death. “The step up” means that the increase in value of the home’s tax basis is “Stepped Up To Market Value” so the cost of the home comes to you at fair market value at the time of death. When you sell the home, any tax you owe is based ONLY on the increase in value in your hands.

As a Realtor I can get you that stepped up value which you will need if you sell or not.

Even a Inherited (FREE) home can be costly, if the mortgage is paid off at the time you inherit the home you still have to to deal with other cost. There are property taxes, home owners insurance, liability insurance, heating, water, gardening, electricity and more.

If you are planning on selling the home you will have inherited it with all the baggage. I have been through this twice. There are emotional consequences with dealing with all the physical stuff like electronics, household goods or clothing what I refer to as “baggage”, this part of the the inheritance take huge amounts of sentimental time. Mom’s favorite tablecloth dad’s tools or your parents wedding album this can also cause real strife among siblings.

I have done a lot of work with Estate Sale companies and home clean out companies and can help with all of this if needed, the setup and coordination may be a help if you don’t live in the area of the home and can’t take weeks if not months off to get the home cleared out and ready for a sale. It is also not advisable to leave a home empty for long periods of time, this is when you will start to have maintenance issues possibly trouble with vagrants etc. I can get the home ready to sell As-Is for a fast cash sale or get what ever is needed to clean the home up and get it just right to get the most out of the sale.

Call me and I can help answer your question.

Mark
310-430-0633

If you are thinking of buying or selling a home, condo or investment property call me Mark Spector 310-430-0633