Sometimes you don’t intend to acquire a new property. Inheriting a property from a recently passed relative can be bittersweet. It can also be a little overwhelming. What steps do you need to take? What are your options for this home? Here we’ll answer questions you might have about your new property and what your responsibility is.
The Probate Process
The probate process and how long it will take varies from situation to situation. Unless you’re the executor, your role here will be fairly minimal, mostly just signing paperwork. The executor is either named in the will or chosen by the court — usually a surviving spouse or eldest son or daughter — to take charge of all probate proceedings to do with the estate. If the previous owner died recently, the probate process could take up to 6 months because property records will need to be amended.
What Are Your Options?
Just because you inherit a property from a loved one doesn’t mean that you have to live there, and sometimes they don’t intend for you to live there. It can be sentimental if you’re able to move into the home, but more often than not, the inherited property is rented out or sold. This is especially true if a property is left to multiple people, for instance sibling children or grandchildren of the deceased. Sometimes property is even left to beneficiaries with the intention that they sell it, in situations when the deceased wasn’t able to just leave money.
Inheriting the Expenses
When you inherit the property, you also inherit the expenses on that property. The mortgage becomes your responsibility, to continue to pay or refinance, unless it has already been paid off. Cost of utilities, property taxes, and any forms of insurance on the property will also be transferred to you. This is often a major contributing factor in whether or not to sell the property. However, it should be noted that there may be tax deductions to be reported in selling an inherited property.
Particularly if you want to rent the property, you will need a home inspection done, but also if you want to move into the property yourself. This is essential to determining whether the house is habitable and how many repairs it might need. It’s still a good idea when you plan to sell the home, though. Having a home inspection will give you a good idea of the condition of things and thus the value of the property. In fact, home inspection results can be a deciding factor when trying to determine whether to live in the home, rent it out, or sell it.
Hiring a Realtor
If you plan to sell the home, hiring a listing agent can be a massive help, but a realtor may be able to advise you in other decisions about the property as well. The process of inheriting a property can be a trying time, and the experience of a local realtor can make it easier for you. If you’re in need of a realtor’s help with your inherited property, contact The Barclay Team today.