{"id":228,"date":"2024-02-20T20:15:03","date_gmt":"2024-02-21T01:15:03","guid":{"rendered":"https:\/\/www.trinidadsolutions.com\/?p=228"},"modified":"2024-02-17T13:41:07","modified_gmt":"2024-02-17T18:41:07","slug":"the-process-of-selling-inherited-property","status":"publish","type":"post","link":"https:\/\/www.trinidadsolutions.com\/the-process-of-selling-inherited-property\/","title":{"rendered":"The Process of Selling Inherited Property<\/strong>"},"content":{"rendered":"\n

Dealing with an inherited property or a property in probate can be a difficult and time-consuming process. Because of the many laws associated, an inherited property can take months before the title changes hands. When it finally does, you can be left with a property that hasn\u2019t been updated in years and is in dire need of maintenance.<\/p>\n\n\n\n

In this article, we\u2019ll describe the process of selling inherited property to better understand how to navigate the real estate market once this situation occurs. With Trinidad\u2019s help, you\u2019ll be able to sell an inherited property much more easily.<\/p>\n\n\n\n

Common Challenges When Selling An Inherited Property<\/strong><\/p>\n\n\n\n

If you are faced with this type of situation, it is important to focus on the high-priority hurdles first. Here are the four biggest challenges to selling an inherited property with deferred maintenance:<\/p>\n\n\n\n

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  1. Limited Capital<\/li>\n\n\n\n
  2. High Carrying Costs<\/li>\n\n\n\n
  3. Selling a Fixer-Upper<\/li>\n\n\n\n
  4. Lack of Local Market Knowledge<\/li>\n<\/ol>\n\n\n\n

    Limited Capital to Fix Up:  <\/strong><\/p>\n\n\n\n

    When inheriting property, your money may be tied up in other properties, credit may be maxed, or you do not have the capital to do the work the property requires. Buyers almost universally want to buy a turnkey property unless they get a discount. If you don\u2019t make improvements, your buyer pool will be limited, and it will be reflected in your sales price. You can try finding capital through credit cards, private lenders, or short-term partnerships, but each option has drawbacks.<\/p>\n\n\n\n

    High Carrying Costs: <\/strong><\/p>\n\n\n\n

    The biggest issue with not selling inherited property is the carrying costs. Every month you own the property, and you cover property taxes, insurance, utilities, and many other expenses. By not selling inherited property quickly, you can fall behind, forcing more desperation and prompting you to make decisions with the property you normally wouldn\u2019t.<\/p>\n\n\n\n

    Selling A Property That Needs Work: <\/strong><\/p>\n\n\n\n

    Without the capital to make improvements, the sale of the inherited property might be in an as-is condition. You essentially defer the responsibility for the improvements to the buyer. Many buyers lack the desire or financial wherewithal to throw money into a new home purchase. Buyers can struggle to come up with a down payment, let alone money for improvements. This leaves you with a buyer pool of investors and buyers looking for a discount.<\/p>\n\n\n\n

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    Lack Of Local Market Knowledge:<\/strong><\/p>\n\n\n\n

    An inherited property might not come from your immediate family, it could be from an extended family member. This requires a different strategy, regardless of what you want to do with the property. Make the right improvements for the market to maximize the profit and expedite the sale.<\/p>\n\n\n\n

    The Sale of Inherited Property FAQs<\/strong><\/p>\n\n\n\n

    Let\u2019s answer some of the most common questions that are asked about inherited properties:<\/p>\n\n\n\n

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    1. Timeframe for Selling<\/li>\n\n\n\n
    2. Siblings Forcing a Sale<\/li>\n\n\n\n
    3. Tax Implications<\/li>\n<\/ol>\n\n\n\n

      What is the Timeframe for Selling An Inherited Property?<\/strong><\/p>\n\n\n\n

      Going through probate can be a long and grueling process, even with a will. By the time you take ownership, you can feel drained and beaten down. The last thing you want to do is wait another extended period to complete your improvements and wait for a buyer. If there is an extensive amount of work needed on the property, you have two choices.<\/p>\n\n\n\n

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      1. Do whatever repairs and work that is necessary, regardless of how long it takes. Waiting a month or two to get the work done has significant advantages.<\/li>\n\n\n\n
      2. Entertain a quick sale and take the first halfway decent offer. If not, it can easily be another handful of months before another offer comes your way.<\/li>\n<\/ol>\n\n\n\n

        Most buyers want their properties fresh, updated, and turnkey. If there is deferred maintenance, you need to do the work before putting the home on the market.<\/p>\n\n\n\n

        Can Siblings Force the Sale of Inherited Property?<\/strong><\/p>\n\n\n\n

        If a will\/trust exists, one of the heirs will be the executor. The executor is the decision-maker and has the power to sell the property without permission from other heirs. But sometimes, no executor is chosen, which is a challenging situation for the heirs. Three things can happen:<\/p>\n\n\n\n