Inheritance is a blessing left for us upon the departure of a loved one. However, we are not always willing to keep our inheritance and may want to use it as a source of income. Selling a house in Greensboro has many hidden pitfalls, and it should be approached with prudence. Many mistakes are easy to make and extremely difficult (or impossible) to correct. So what should you look out for? Let’s have a look at some of the most common issues. We will discuss mistakes to avoid when selling an inherited property in Greensboro in detail.
1. Not reading through the will thoroughly
This may seem obvious, but there is no way to overstate the importance of this task. Going through the will carefully is crucial to ascertain who the will’s beneficiaries are. Attempting to sell an inherited property in Greensboro before making sure you have complete control can be disastrous. If there are more beneficiaries than one, it complicates the selling process. This is because all the involved parties must agree on the sale. Naturally, you will also have to agree among yourselves. Therefore, make sure you’ve examined the will very carefully to avoid unpleasant surprises.
2. Proceeding without consultation
While it may be tempting to try and use the inheritance to land a quick buck, try to be patient. Do not run headfirst and blind into selling an inherited home. It is advisable to consider hiring legal as well as real estate expert’s help to get the most out of this sale. You will most likely also reduce the risk of any issues during the selling process. A great deal of tax-related information you may not be aware of could influence your sale tremendously. Here are some essential facts to know about selling a property in Greensboro:
● Inherited properties do not qualify for the home sale tax exclusion. As you’ve not spent at least two years owning and living in this property, you have no eligibility for the home sale tax exclusion. This means you cannot avoid the taxation of up to 500,000$ in proceeds. This will likely put a dent in your profit.
● As a beneficiary, you may take advantage of the stepped-up tax basis. This is a valuable benefit if you’re a new homeowner who has just inherited a property. It relieves the seller of taxes that otherwise would have to be paid if the home had risen in value dramatically over the past couple of decades. The property will be taxed based on the market value at the previous owner’s death.
● The proceeds must be reported to the IRS. The IRS demands that the proceeds from selling an inherited property in Greensboro, as anywhere else. The IRS regards the profit from the sale as taxable income. The amount that will be taxed is determined by considering the property’s fair market value. Keep in mind that, even if there will be no taxation, it is generally a good idea to report the event to the IRS.
● Before selling an inherited property in Greensboro, it must go through probate. Going through probate means that the will must go through a proving before the house can be put up for sale.
3. Not finding out if there are any outstanding debts related to the property (mortgages, etc.)
This is a crucial task to concern yourself with. Making the mistake of not checking for previous outstanding debts can be a complete nightmare. In fact, not checking for outstanding debts before accepting the inherited property can put you in a challenging position. You may even end up inheriting an obligation instead of inheriting a source of potential profit. That’s right – if the mortgage at the time is higher than the market value of the house, you may end up losing money.
4. Not preparing the property for the sale
Before putting the property up for sale, make sure you’ve prepared it. It is advisable to hire experts to do a home inspection. A house inspection is a thorough examination of the property. It includes closely inspecting everything about the house and seeing whether any areas require improvements or repairs. Electrical, plumbing, structural integrity, etc., are all examined carefully during a home inspection.
Retrieving items from the inherited property
Another essential thing to do is to remove any unnecessary items from your home. As potential buyers will be coming in for a viewing, it is recommended that you remove any items that may impair the estimated value. If there are any items or furniture pieces that you’d like to keep, consider hiring moving experts. If you are unsure, you may consult websites such as usamovingreviews.com. Sites such as this one offer fair reviews of moving service providers.
Utilizing long-distance moving services
As your inherited property may be far away, getting in touch with reliable long-distance movers is key. It would be a shame for valuable personal items to languish in storage or be thrown away. Many do this because they have no idea how to get these items to their current residences. Luckily, this is a problem that has a simple solution.
By using online sources for choosing the best long-distance movers and reading moving service reviews, it’s now easy to find people you can trust. Once you decide on your chosen mover, it will be a simple process going forward. Get your free quote quickly by providing the movers with basic info about your moving requirements.
5. Incorrectly pricing the property
While it is understandable that an inherited property may hold sentimental value, you should be realistic. It may be challenging to remain objective when pricing something that’s a gift. Many people struggle with selling a Greensboro property that they have inherited for this reason.
On the other hand, some people grossly undersell the property. This is often due to being impatient and wanting to get a cash offer right away. It can also happen simply due to negligence and ignorance. There are online tools for estimating property value. These are decent, but you may also want to consider hiring someone to do a proper appraisal.
Mistakes to make when selling an inherited property in Greensboro – the conclusion
There are numerous ways in which selling an inherited property in Greensboro is different from a regular sale. We’ve highlighted some of the most commonly made mistakes in this article. Hopefully, once you’ve had an insight into the possible issues, your sale will be hassle-free
If you read through all this and decide you do not want to deal with all the hassles and the headaches of selling a inherited property, call AIP House Buyers. We are a local company in the Greensboro, NC area and have been buying all types of houses in all types of situations since 2009. We are have a proven track record, Google Business 5 Star reviews and we re the #1 House Buyer in our area. Call or Text 336-707-5223
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