So, you’ve inherited a property. When someone dies and leaves you as the beneficiary of their estate, you have a lot of responsibility. Not only do you need to deal with the actual home that has been left in your care, but you will also have to go through the belongings.
Some people choose to hold an estate sale. During this type of sale, you mark all items in the home you’re willing to sell and allow potential customers to walk through the home and purchase them. Unlike a garage sale, an estate sale can include high-price items, such as antiques.
Let’s say you’ve held your estate sale in Sacramento. What now? Here are some ways to handle the actual property, assuming you don’t want to move in.
All About Selling an Inherited Home
Your estate sale isn’t totally finished until you’ve found a buyer for the home. You may also have to donate remaining belongings or hold a second sale to get rid of all the furniture. Here are some steps for following up your initial sale of interior items with a property listing:
- Get the Home Appraised. Homes you inherit from an older family member may be paid off. At the very least, they probably haven’t had an official appraisal in a long time. The appraisal may inform whether you list the home on the MLS or sell it for cash, and it will dictate the tax implications of the sale. As this NOLO article explains, inherited homes don’t qualify for the $250,000 tax exemption that a primary residence sale does. Instead, the tax table for your sale is determined via a step-up basis that considers the current value.
- Consider Whether Fix-It Items are Worth It. If your late family member didn’t do a lot of updates on the property, it may not be worth as much as a modern property in the same neighborhood. Perhaps you can get more money for it by completing some upgrades. On the other hand, if the roof is bad and the plumbing is old, it might not be worth the hassle.
- Choose an Agent or Cash Buyer. If the home is in great condition, you might want to seek out a real estate agent and stage the property for a regular sale. This can take time, though, and you’ll have to cover the property taxes and other carrying costs in the mean time. A cash buyer will usually be willing to take the home in “estate condition,” which is a nice way of saying “an inherited home that has some problems.” If you sell the home for less than the appraisal, you can also get to report a capital loss instead of a gain — which could save you money on your taxes.
- Report the Sale to the IRS. Don’t forget to properly report the capital gain (or loss) on your taxes. If you usually complete your own taxes, this is the year to hire someone else. As a general rule, you will pay a capital gain based on the home’s value the day you inherited it versus the sale price. If it was valued at $300,000 the day your loved one died and left it to you and you sell it for $310,000 — you’ll pay capital gains on ten grand.
Want to Sell an Inherited Home Quickly?
Did you inherit a home that you’re not sure what to do with? The first thing to do is go through the home and figure out what you can toss out. Take any items you want to keep for yourself. Then, clean the place up and price any items you’re willing to sell. Holding an estate sale is apt to bring in a lot of people, because they know there is a potential for higher-end goods to be available.
After the estate sale is done, consider giving us a call! California Family Homebuyers purchases Sacramento homes in as-is condition. So you don’t have to fix your grandmother’s leaking roof before you sell the property. We buy homes all over the city and can get complete the sale in as little as a few weeks.
Give us a call today at 916-496-3737 to talk about selling your inherited estate in Sacramento!