Inherited houses are handled differently depending on what the particular situation is. When a house is inherited in a will, it has to be probated, which means that the will has to be officially proved by a lawyer. (If a house doesn’t have a will, click here.) However, when selling an inherited house, some people avoid probate. Below is a list of reasons and circumstances that warrant the quick sale of an inherited home.
#1 To Prevent and Settle Liabilities
Being an executor of an estate can come with certain risks. For example, if you do not properly take care of legally securing the estate and its assets, you may suffer a loss as a result. Being the executor of the estate means being responsible for a lot. You are responsible for the property taxes on the house, the maintenance and the mortgage payments. Additionally, there might be other costs involved in holding property (unexpected repairs, electricity bills and other utilities). Selling the property will help you avoid these liabilities.
#2 Expedite the Process of Liquidating the Asset
Selling the house is the quickest way to liquidate the asset and distribute the money among the heirs. In many cases, and especially after unexpected death, families want to move on.
In some cases, siblings are not getting along or do not agree on how to handle the estate. For example, one of our former clients had a sibling who was not capable of making prudent decisions, so she felt the best way to deal with it would be to sell the house and divide the money.
#3 Avoid Conflict and Disagreement Among Heirs
Selling the house at a discount is an attractive option because the family does not have to update the house or pay for holding costs. For example, Big State Home Buyers usually closes in less than 30 days so the family can have cash in hand without having to worry about repairs, commissions or legal fees.
#4 To Avoid Payments and Holding Costs
As I kind of already mentioned, there are other costs involved with owning or holding a property. If the house is paid off, then the heirs still have to worry about paying taxes and maintenance costs. If the family decides to sell the house via traditional means, they will have to coordinate and choose a real estate agent, decide on the needed repairs and pay for the renovations. If the house is not paid off, then the family also has to worry about making mortgage payments.
Inheriting a house means inheriting the expenses that come along with it. If the air conditioner breaks, then the heirs will have to pay with repairs or risk degradation of the vacant home. The lawn still needs to be maintained, and the longer the house is vacant, the more susceptible it is to harm. If the heirs do not live near the house, they might also want to pay for security cameras or an alarm to protect the house while it is vacant.
#5 Tragedy of the Loss
In many cases, selling the property makes the most sense because the family simply does not have enough energy or strength to handle the maintenance of the property and the legal process of going through probate. Home investors, such as Big State, handle the entire process so the family can grieve without worrying about the unexpected asset.
#6 Might be a Requirement of the Deceased to Sell
In some cases, the deceased specifically spells out that they require the sale of the house by the hairs.