Inheriting a property can be both rewarding and challenging. For many people, it’s a once-in-a-lifetime experience that they know little about. Some choose to move into the inherited home, while others explore options like renting it out or selling it.
If you’re planning to sell an inherited house in California, your real estate agent can offer guidance that helps you avoid common pitfalls that can cost you financially, prolong the process, and make the experience more frustrating than it needs to be.
Taxes, financial obligations, and other associated costs can make selling an inherited home a complex process, but it doesn’t need to be overwhelming.
Things you need to consider include:
For most people who inherit property, capital gains and other tax implications are a top priority. California’s new Proposition 19, which became effective February 16, 2021, is a dramatic property tax increase that completely overhauls former family transfer benefits. Areas with the highest property values, such as in the wine country real estate market, will be impacted the most.
Like most laws, there are exceptions written into Prop 19, such as for people who are 55 and older or children of the deceased who intend to live in the house within one year of transfer. You’ll want to talk to a real estate attorney or your tax adviser about how this new rule might affect your inheritance and your financial obligations.
Once you get a handle on the financial aspects of selling a home you inherit, you’ll need to prepare the house for sale. You might need to hold an estate sale, clean out personal belongings, and wait for the estate to go through probate.
The right real estate agent can help you navigate pricing an inherited home and negotiating offers. They’ll also fill you in on hidden hurdles you might face, such as delays in the probate process. Most of all, an experienced agent knows how to help clients cope with an emotional process that can be much more overwhelming than one for a typical house sale.
To learn more about how a real estate agent can be your trusted partner selling an inherited home, contact Connie and Jamie today!