Selling an inherited home in Georgia is not as easy as people think!
Read on to learn how to sell a house you inherited in Atlanta, Georgia…
First of all, there is always that emotional bit of preparing a loved one’s house ready for sale
This most likely includes depersonalizing his or her rooms and also clearing out all the belongings…
Then there is the cost of marketing the house in order to attract potential buyers.
Usually, heirs get to deal with the high costs of liens and other issues.
Consequently, disagreements may arise.
Therefore we at Breyer Home Buyers have compiled a few points that should help steer you in the right direction if you ever find yourself in such a dilemma.
Here are a few tips on how to sell a house you inherited in Atlanta, without having to sweat much.
Making the probate process go smoothly
Get some advice
The first step you should take is to get some professional advice.
You must understand the status your house is in.
Make sure that you verify your ownership.
Seek advice from a real estate attorney.
Get info from other experts too.
And completely utilize this site too of course.
We can also give you a fair deal for your inherited local Atlanta house if it qualifies.
Next Step: Begin the probate process in Atlanta
Before you embark on the selling process, your house must go through probate.
Most countries allow for summary probate – which is just a simple process that takes a very short time and involves less legal processes.
Once your house passes the probate process in Atlanta, you can then put it on the market.
The tax basis of your inherited property is the house value on the date that the person who willed you died.
The difference between the amount you realize from the sale and the value is basically the gain on which you owe the taxes.
Fair market value is the price that property or asset would command in the marketplace.
If the administrator of the estate votes to use an alternate valuation date for the estate, the inheriting party must be notified.
The cost basis is then equal to the fair market value of the property or assets either six months following the date of death or the date on which the asset was distributed to the person inheriting it, whichever is earlier.
For assets related to farming or in a closely-held business, there may be some exceptions to check further into.
What Is the Holding Period on Inherited Assets?
No matter how long property or assets are actually held, an inherited property is considered to have a holding period greater than one year.
Thus, capital gains or losses are designated as long-term capital gains or losses.
Under current tax law, long-term capital gains are taxed at a more favorable, lower rate than the normal income tax rate.
How to sell a house you inherited in Atlanta
Agreeing to sell
If you are ready to sell your inherited house in Atlanta, you can inform the executor to petition the court in order to get the “go ahead” sign and proceed with the sale from the there.
Problems always arise when siblings who share the inheritance have different views.
For instance, others may want to sell the house while others may not be for the idea.
If and when this happens to be the case, it is important to “disagree to agree”.
It is also important to involve your estate lawyer in this stage.
Are there multiple stakeholders in the inherited property?
It’s very common to inherit the property with another stakeholder, like a sibling or other family members. Of course, multiple stakeholders make things more complicated.
Consider these options:
- Buyout: If one sibling wants to keep the home and the other wants to sell, one can buy the other out, either in cash or by financing half of the home’s value. Out-of-pocket expenses include closing costs and an appraisal.
- Promissory note: If you want to keep the property, your sibling wants to sell and you don’t have access to a mortgage, you can record a promissory note that outlines how you’ll pay your half of the home’s value back to your sibling — in monthly installments plus interest. You’ll effectively be buying out your sibling over time, and they’ll receive some interest income along the way.
- Sell and split the profits: Perhaps the most straightforward option, you and your sibling agree to sell the home, pocketing your half of the proceeds after expenses and commissions.
- Rent and split the profits: If the real estate market isn’t strong, you may decide it makes more financial sense to rent the property. You and your sibling would pocket whatever profit is left over from the monthly rent, after maintenance and property management costs.
- Suit for partition: If stakeholders can’t agree on what to do with a property, you’ll have to get the courts involved by filing a lawsuit for partition, which essentially asks a judge to order the sale of the home. This can be a timely and expensive process, with legal fees lowering the profits you’ll receive far below what you would have pocketed by selling in the first place.
Preparing to sell
A house that belonged to an elderly person may require repairs and a bit of updating before you can put it on sale.
You will need to get rid of everything!
You can choose to hire an inspector to note down potential issues and recommend possible repairs.
Although you can sell a home in Atlanta “as is” you may be forced to accept a lower price, especially if your house requires extensive repairs or cleaning.
Here at Breyer Home Buyers however, we will always give you a fair deal and help you get as much value from your inherited house as possible.
We often times buy local houses in Atlanta, repair and fix them up and either rent them out or sell them to someone else looking for a great deal.
If your local Atlanta house meets a few simple qualifications, we can buy your house fast.