Inheriting real estate is rarely as wonderful as it appears in the movies. The responsibilities that come along with this gift can be extremely overwhelming, especially if you’re left older property in a state of disrepair. While your loved one may have had the best of intentions, inheriting a property could be an emotional and financial burden that comes at an inopportune time.
Does this sound familiar? If you have inherited property and aren’t sure how to proceed, here is some important information you need to know about inheriting real estate in Sacramento.
Financial Responsibility
One thing you should know about inheriting real estate in Sacramento is that the recipient of an inheritance of real estate is financially responsible for the property. This includes any outstanding debts attached to the property, including liens. Additionally, you are now responsible for all upkeep. If the property is being rented — congrats, you’re now a landlord! You will also owe property taxes and any homeowner’s association fees attached to the home. And, most associations have strict guidelines regarding the maintenance and appearance of the property that you’ll have to become familiar with.
Repairs
The frequency and expense of repairs both increase as a home ages. This in turn increases the risks and expenses involved with inheriting real estate in Sacramento. Whether your intent is to live in the property or list the property, you should take steps to educate yourself on the condition of the home from the foundation to the top of the roof. Save yourself from catastrophe by hiring a professional inspector to give the property a full once-over. It is highly recommended that you contact at least three professionals for each type of repair and compare bids.
Clearing Personal Property
Inheriting real estate in Sacramento can be a very emotional time. Regrettably, you will need to either remove all of the personal property of the deceased from the property yourself or hire professionals to do it. Depending on the condition of the property, how well you want to categorize each item, this task could take days. You might be going through decades worth of stuff.
Taxation
Whether or not you believe you believe you will personally ever inherit real estate, it is one of the most common items passed on. The tax implications of inheriting real estate in Sacramento are something everyone should have at least general knowledge about. Under the Unified Gift and Estate Tax system, estate tax is based on the value of property transferred through inheritance, which is calculated based on specific guidelines and includes possible deductions. While often no federal estate tax is owed as the beneficiary, this is not always the case. Every American currently is allowed to inherit up to 11.18 million. You will also want to be certain to investigate gift tax as well. Additionally, there are several states which do have estate taxes, so familiarizing yourself with these laws may be helpful in the future.
Purchasing Other Property
Because you incur the financial responsibilities along with the property, if you were on target to purchase your dream home, everything may have just changed dramatically. One of the major changes may just be in the eyes of your lender when inheriting real estate in Sacramento. Depending on the remainder of the mortgage and any other expenses that are now in your name, your debt to income ratio may now mean you no longer meet the guidelines to qualify for a loan. Additionally, the outlay for repairs is likely to deplete whatever savings you have managed to gather in anticipation of your plans.
For many, holding onto an inheritance of real property is much too time-consuming or simply not financially possible. There is a simple and quick solution that will easily eliminate any concerns about inheriting real estate in Sacramento. Working with California Family Homebuyers means total convenience, with no showings or open houses. Just pack what you want and leave the rest behind. California Family Homebuyers will help you with the paperwork and make the entire process easy, explaining every step along the way. The price California Family Homebuyers offers is what you will receive at closing. Just send us a message or call California Family Homebuyers at (916) 907-6116 to discuss the market value of the property and the possible options of selling your unwanted inherited property.