Whether it is the home you grew up in as a child or a property your loved ones lived in once the nest was empty, receiving an inherited home comes with a lot of emotional ties. While some choose to keep the home for themselves, selling an inherited house makes sense for many people that simply do not want the property or are in need of financial resources. If you are interested in selling inherited property in Greenville, South Carolina, however, you may be wondering about the specifics like dealing with siblings, finding the best buyer and addressing taxes. The following guide from Hearthstone Investors will shed some light on the essentials.
First Steps: An Adequate Appraisal
This rule applies to all types of real estate and it is especially important when selling an inherited property.
Many people who sell a home inherited from parents focus on the amount the property used to be worth. Unfortunately, this approach isn’t realistic. Market dynamics change. Properties depreciate over the years. Thus, professional appraisals can provide much more reliable information about what the house is currently worth.
Property valuators know which factors to take in consideration when coming up with a price for the property. Unfortunately, the emotional appeal of the house and the family traditions cannot add to the overall asking price.
A reasonable asking price can help for a faster sale. There is one very important rule to remember when selling an inherited house in Greenville – the more time it spends on the market, the more the original price will have to be reduced to generate a sale.
Dealing with Siblings and the Emotional Impact of Selling an Inherited House
Selling an inherited house can produce several complications that other real estate owners will be free from having to address.
Whenever a single person inherits a house, the selling process is simple and straightforward. In real life, however, things do not always work out in a clean and simple way. Multiple heirs will probably have different ideas about the future of the property. Thus, if a sibling opposes the sale of the house, the process will become longer and convoluted.
Title problems need to be addressed quickly. Some potential title problems that will stand in the way of selling inherited property include illegal deeds, unknown liens, undiscovered wills, missing heirs and errors in public records. If you are facing such issues, it is important to reach out to professionals who are used to dealing with these problems.
Apart from having to cope with siblings, you will also face the emotional consequences of losing someone you love. Many people believe they are ready to sell a family house only to discover they are not ready to let go due to emotional ties.
Ask yourself whether you can let go of the property. If the answer is negative, it may be a good idea to wait some time before moving forward with the sale.
Selling an Inherited House in Greenville: Tax Considerations
South Carolina is one of the states in the US that does not have an inheritance tax.
The only exception to this rule is inheriting property from someone who has lived in another state. There are several places in the US that do tax inheritances – Kentucky, Nebraska, Iowa, Pennsylvania and New Jersey, for example. Whenever the person that leaves the property to someone is a resident of one of these states, the local inheritance tax laws will apply.
As far as the sale of inherited property goes, there are a couple of additional legal considerations. The starting to point to make the calculation is the value of the property at the time of the owner’s death. This means the original value of the property is not taken in consideration when selling an inherited house.
A general rule of thumb is that selling an inherited house for more than the basis will lead to taxes on the surplus.
Negotiating and Finalizing the Sale
The final part of selling an inherited house is negotiating with potential buyers. It’s very important to refrain from making big concessions right from the start. If you see that someone is interested and you have a good chance to sell a home inherited from parents, maintain a degree of flexibility.
Experienced sellers know that they can’t expect to get the asking price (even when the amount is adequate and determined by an appraiser). The negotiations process is the one that will determine the final selling price.
Still, you need to set a minimum threshold that you will not go below. Usually, buyers and sellers agree on a price that is somewhere between the maximum and minimum.
Interested in Selling an Inherited Home in Greenville? Contact Hearthstone Investors
When it is time to sell an inherited property, it is likely that you have a lot of things on your mind. From disputes with siblings to taxes and negotiations, the entire process can be overwhelming. Not with Hearthstone Investors of Greenville, South Carolina. We understand what a trying time this can be in your life, which is why we offer a fast, fair, and confidential way for you to sell your inherited home in Greenville without the added stress and hassle.