When you inherit a house in Chicago, you might have a wide range of emotions. It can be a difficult time and you should be thoughtful as you decide how to handle the property. You might feel attached to the house out of sentiment, finding the idea of a sale difficult. If you do decide to sell the property, here are a few tips to ensure a smooth transaction.
Prepare The House For A Sale
Do Your Homework
Before you list or sell the property privately, you will want to familiarize yourself with the property. It’s likely that you don’t know all the ins and outs of the home. Review all renovations and repair records and learn about any items under warranty.
Have The House Appraised
Have an appraisal done on the house so you know what you are dealing with. Research other recent sales in the neighborhood so you can price your home to sell.
Even if the house isn’t being used, you will still need to have insurance for it. Talk to your broker about a policy for vacant homes.
Cleaning the home might be difficult for you. Consider hiring a team of professionals to do the cleaning after you have removed the personal possessions from the home.
Many times, people will hold an estate sale to help get rid of all of the items left behind in the home. This is also a great opportunity to let people know the house is for sale. Carefully sift through what is left behind, selling the items that nobody wishes to keep. Don’t be hasty and sell things of sentimental value. You will likely regret it down the road.
What If There Are Multiple Heirs?
When there are multiple heirs to an estate, one person will be named the executor of the will, and be in charge of the financial transactions regarding the property. All parties will need to sign off on the sale before it is final. Heirs can choose to buy each other out before the house is sold. If the heirs cannot come to an agreement, on what to do with the house, the court will likely order the house auctioned off or sold.
Consider Selling The Property Directly
When you inherit a house, and you decide to sell it, it’s not likely you will want to sink a bunch of money into the home. By selling direct, you will be able to liquidate the house, without having to pay upfront. Listing the house comes with many costs. With a direct sale, you can avoid repair, marketing, and listing costs. Plus, you won’t have to pay an agent their commission for selling the home. By selling directly, you will be able to save time and keep your cash in your pocket. It will also help if there are many heirs to a home. Selling direct will provide a quick and easy process for all parties involved.
Be Prepared For The Tax Man
Inherited properties are still subject to Capital Gains taxes. These taxes are recovered when the property is sold and are based on the value of the home at the time of inheritance. Many properties won’t be affected by capital gains taxes. Talk to your accountant or attorney to find out how it will affect you.
Should You Hold On To It?
You don’t want to find yourself with a case of sellers remorse. Take the time to weigh your options before selling. Consider not only your feelings but the feelings of other members of your family. Try to come to a consensus on what to do with the property and remember, nothing is worth fighting with your family over, especially after going through such a difficult time.