How to Sell Property You’ve Inherited: Tips for a Smooth Transaction

Need to Sell Your House Fast for Cash? Blue Clover Investments Can Help

Inheriting a property can feel like good and bad fortune happening at the same time. On the one hand, you’ve inherited a valuable asset. On the other hand, the asset is likely tied to sad circumstances. Inherited property also comes with legal hoops that beneficiaries must jump through to keep the process moving forward.

As experienced real estate professionals, Blue Clover Investments is well versed in the probate process and helping people sell property they’ve inherited from a family member. If you recently inherited a property and want to sell your house fast for cash, you’ve come to the right place.

After going over some of the finer points of inherited property, we’ll provide some useful action items to pursue that will help you sell your house.

Step 1: The Probate Process

Inherited property often goes through a legal process known as probate. The goal of the probate process is to authenticate and verify the wishes of the deceased that are included in their will. Typically, family members don’t need to do much; the lawyers and executor of the will do most of the heavy lifting.

Assets are awarded to the appropriate parties after the probate process concludes, including real estate property. In many cases, property is awarded to a single person; this is the ideal scenario because it makes things simple. However, sometimes inherited property has multiple beneficiaries named, which means the heirs must agree on what to do with it.

Step 2: Sizing Up Your Tax Obligation

Inherited property is typically not subject to federal estate taxes; however, the act of selling property to get cash for the home can potentially trigger a tax obligation, but only if the new homeowner sells the property for an amount that exceeds market value.

Typically, the IRS allows the value of the deceased individual’s property to be scaled to fair market value. For example, a home bought in 2010 for $150,000 may now be worth $300,000 in 2023. Using fair market value, an heir will only owe taxes on the amount that’s above and beyond $300,000. If the home sells for $325,000, the heir only owes capital gains taxes on $25,000. Capital gains taxes are based upon income and range from 10% to 37%.

Step 3: Addressing the Challenges of Selling Property You’ve Inherited

Another big drawback for sellers is the turnaround time as they wait to get cash for the home. Inherited property can potentially get locked up during the probate process or when heirs can’t decide what to do with it. Heirs must also consider the cost of repairs and renovations to prepare the property to go to market. It’s possible certain areas of the home require an investment to bring them up to code for the sake of getting property insured. However, sellers who find a buyer that’s willing to purchase the home for cash in as-in condition don’t need to worry about this.

How to Sell Your House Fast for Cash

If the idea of selling an inherited property sounds like a headache that can last for several months, that’s because it is. Although inheriting property can look like an unexpected windfall at first glance, it is by no means “easy money.” Getting cash for a home is a lengthy process; however, you are not without options.

Blue Clover Investments has established a reputation in the Kansas City real estate industry for completing deals on an accelerated timeline, including properties that are subject to the probate process. Finding out your options is a simple three-step process:

  1. First, you tell us a little bit about the property and provide some background info.
  2. Next, we will discuss your goals and timeline for selling the property.
  3. Finally, we break down your best options, including a quick cash close.

If your goal is to sell your house fast, we have ways to accomplish that on an expedited timeline. If you wish to get more value out of your inherited property on a slightly longer timeline, we can help you out there, too. On the rare chance that our options don’t align with your goals, Blue Clover Investments has a vast network of trusted real estate agents we’re happy to refer you to.

Contact Blue Clover Investments by phone at (816) 237-5959 for your free consultation. A quick call is all it takes to discover what your selling options are and how we can assist you. We can also be reached using the contact form on our website.