Sell Inherited Property in Thornton
When you Sell inherited property in Thornton it comes with its own pros and cons. In fact, when you inherit property, there are several other things you can do with the house rather than sell it, but if you don’t want the inherited house to burden you, selling it could just be the only reasonable option.
Once ownership of your parents’ property exchanges hand, the decision on what to do with it can be very hard. If you are alone, the decision-making process is much shorter and simpler, however, in cases where there are multiple heirs, things can get quite tougher than expected, especially if people involved have different opinions.
Basically, there are two things you can do with an inherited property other than selling it. If it’s a house we are talking about, you can either move in or simply rent it out. Each channel has its implications and to help you make the right decision, here is a broader look at each scenario.
Sell inherited property in Thornton
People sell inherited property all the time. In most cases, children inherit property that might be decades old and as such, it’s not always in the best physical condition. It’s easy to find a house that is ugly or wrecked beyond repair, thus the only way to revive it is to start all over again by demolishing it. If the house needs repairs and you cannot afford them, selling it is usually the right decision.
There are also some instances where the inherited property is still in great condition, especially if the owner had purchased it in the past decade or less. Given that property is always appreciating, chances are that for the years it has been around, the price has now hiked compared to what it was originally paid for. To make sure that you don’t make mistakes when choosing the right price, do a little research of your own and find out how other similar properties in the neighborhood are priced.
Despite the appreciation in price, the taxable amount will be based on the fair market value at the time of the death of the previous owner or rather, the heirs will receive a stepped-up basis.
So, if you plan on selling inherited property, you’d be better off looking at comps and deciding the fair market value of the property in question. In addition, make sure you pay the homeowner’s insurance and the estate is named as the insured. You never know what may happen between the death of your folks and the time the sale of the property is closed. The story is not different as far as mortgage payments, utility bills and any property taxes are concerned.
After selling the property, you will have to clear all the debts owed alongside any real estate commissions, transfer taxes as well as closing costs.
Move into the house
You can either sell inherited property in Thornton, or you may also choose to move in. If you are alone, making this decision can be a lot easier, especially if you have been looking to move to a bigger house. In case of multiple heirs, you can always agree on something that will see one person keep the house, even if it means the said person buying out the interests of other parties. In other cases, a parent can make it clear that the house can be kept by one child while the rest may take up other assets, a move that makes the whole inheritance process much simpler.
Once you move into a house that was previously owned by your parents, you’ll also have enough time to go through their personal stuff, something that you wouldn’t have the convenience of doing when you decide to sell inherited property. Note that moving into the inherited house may increase your property taxes and in case of mortgages, you may have to assume them as well.
If you move into an inherited house and live there for at least two years, selling it then would qualify you for the capital gains exclusion, meaning you won’t be taxed on profits of up to $250,000 if single and an impressive $500,000 for married couples.
Rent it out
A third and final option is to rent out the house. This can be a chance for you to become a landlord and thus earn a monthly income from the house. Alternatively, you can make it a vacation rental so that you can also use it for other family occasions whenever someone is not renting it. But before you take this direction, make sure you get acquainted with the tenant/landlord laws in Colorado and other stuff associated with owning rental property.