Losing a parent or grandparent is a painful experience. Amidst all the emotions, you may find yourself inheriting a house that you need to deal with. Although it may seem like an overwhelming task to tackle such a project while you’re mourning, it can be fairly straightforward. There are three options to consider when it comes to dealing with the inherited property: selling it, renting it out, or living in it. But how do you decide which path is right for you? Here’s a quick and easy guide that can make this one part of the process a little easier.
If you need help with your inherited property in West Palm Beach, Florida, you can count on 123SoldCash.com. As your local home buyers, we offer cash for houses in Florida, and we can help you sell your property fast.
When to Sell It:
If you are considering selling your childhood home, it may be a difficult decision to make, yet sometimes it is the most practical option. If you no longer live in the area, do not have the time or resources to be a landlord, or simply want to start anew after the loss of a parent, selling the property is the right choice.
If you decide to sell your home through a real estate agent, you will need to ensure the house is in selling condition. This means you will have to sort through all of your parent’s belongings, prepare the house for viewing, and arrange for any necessary repairs.
It is important to make sure that all homeowner’s insurance, mortgage payments, property taxes, and utility bills are up to date. Once the house is sold, you will need to pay off the remaining mortgage balance, taxes, and any additional closing costs.
Fortunately, the capital gains tax on an inherited property is limited. You will only be taxed on the difference between the fair market value of the house on the day you inherited it and the day it is sold.
If you need to sell the property quickly, it is possible to complete the sale while the house is in probate.
When to Rent It:
Renting out your home can be a smart decision if you have paid off your mortgage, are looking for an additional source of income, and live in an area where renting is common. However, before you can start renting, you’ll need to ensure that the property is in good condition to attract renters. This includes removing all personal belongings and making any necessary repairs.
As a landlord, you should be prepared to handle ongoing maintenance, landlord duties, and potential gaps in tenancy. If you don’t live nearby or simply don’t have the time or energy to manage the property, you can always hire a property manager who will take care of day-to-day operations, though this can cost up to 12% of the monthly rent.
It’s important to remember that, like any home you own, you will still need to pay annual property tax on the property. However, as a rental property, the house and any major improvements you make to it can be considered depreciable assets.
When to Move In:
If the location of the house is desirable for you and the living space is suitable for your family, it might be a good idea to move into your parent’s house, especially if the mortgage has already been paid off. However, be aware that you will have to handle maintenance, HOA fees, annual property taxes, and the emotional attachment that comes with living in your parent’s home.
If you decide to live in the house for a couple of years and then sell it in the future, you can claim the capital gain exclusions if you have lived there for two out of the last five years. The exclusions are $250,000 for individuals and $500,000 for joint filers.
Sell My House in West Palm Beach FL:
If you have inherited a house, it can be challenging to decide what to do with it, especially if you have to share it with other people. There are emotional and sentimental factors that you need to consider. However, this article can provide you with a good starting point to help you make a decision.
In case you are thinking of selling your house quickly in Florida, you can opt for our services at 123SoldCash.com. We are local homebuyers situated in West Palm Beach FL, and we aim to assist homeowners in having a quick and hassle-free sale. If your property qualifies, we can provide you with a fair cash offer promptly.
If you require more information or have any questions, please feel free to contact us at (786) 904-1444. Alternatively, you can fill out the online form, and we will get back to you.