If you’ve inherited a property from a loved one, you might be wondering how to sell it. Selling an inherited property is not always straightforward and can be challenging for the inexperienced buyer.
Whether you are thinking of moving into the property yourself or want to sell it for a fair price and as quickly as possible, these tips will help you find the best buyers, negotiate effectively and make sure your deal is fair and profitable.
Read on to learn how to sell an inherited property.
Research the Market Value of Your Inherited Property
Before you even start to market your inherited property, you want to make sure you have an accurate idea of what it is worth. You can get an idea of the market value by looking at comparable properties for sale in your area, or by using an online valuation tool.
Depending on the size and location of your inherited property, you may be able to sell it above or below market value. For example, if your inherited property is a large, waterfront property in a desirable area, you can expect to get a higher price than if you inherited a small, inner-city apartment.
Estimate Repairs and Payouts Before You Sell
If your inherited property needs repairs or has been damaged, you’ll want to factor this into the sale price. Depending on the size and extent of the repairs, you’ll want to either add the cost to the sale price or deduct it from the sale price.
Additionally, if your inherited property was damaged in a natural disaster, you’ll likely be able to get a payout from your insurance company. You may also be able to receive federal funding for disaster relief and assistance if the property is in a declared disaster area.
If the property has been damaged by neglect or poor maintenance, you may be able to deduct the repairs from the sale price of your property. That’s where a qualified real estate agent can come in handy.
Find the Best Real Estate Agent
One of the first steps to selling your inherited property is finding a real estate agent. You may have a friend or family member who has experience in real estate. Otherwise, you can research real estate agents in your area and find one who specializes in inherited property sales.
You may also want to hire a broker to help you sell your inherited property. A broker will charge you a fee for their services, but they are often worth the money as they may be able to get you a higher price and close your sale more quickly.
Set a Reasonable Asking Price
Before you even put your inherited property on the market, you want to set a reasonable asking price. If you set a price that is too high, you risk it sitting on the market for a long time before eventually being cut to a more reasonable price.
If you set a price that is too low, you may end up leaving money on the table. Ideally, you want to set a price that is higher than what you would like to receive. This will give you room to negotiate with potential buyers and allow you to walk away with a profit.
Inherited properties may not be in the best condition, so be prepared to negotiate with potential buyers. Sellers who refuse to budge on the price may have a harder time finding a buyer. So be open to offers, even if they are below the asking price.
Decide How You Want to Proceed
There are two main choices when selling an inherited property: You can sell it on your own or list it with a real estate agent.
Selling Privately
The advantage of selling privately is that you can get your inherited property off your hands as quickly as possible. You can post ads online, contact friends and family, and network with neighbors to find a buyer quickly. Likewise, if you choose to sell privately, you can avoid paying real estate agents’ fees.
Listing with a Real Estate Agent
The main benefit of listing your inherited property with a real estate agent is that agents have access to a wider audience, including institutional buyers who may not respond to your ads.
Additionally, real estate agents have experience selling inherited property. If you decide to list with an agent, be sure to find one with experience in inherited property sales. In addition to hiring a real estate agent, you may also want to:
Consult with a Financial Advisor or Lawyer
It’s important to understand the financial and legal implications of selling an inherited property. A financial advisor or lawyer can help assess any taxes or debts that might be associated with the property and provide guidance on the best course of action.
Prepare Your Property for Sale
There are a few things you can do to prepare your inherited property for sale. First, schedule an inspection from a professional. If there are any problems with your inherited property, this will give you a chance to make repairs before potential buyers see the property. Next, clean up the property.
You may want to get rid of any items belonging to the previous owners. You also want to make sure the property looks relatively modern. Try to make small improvements, such as painting the exterior, adding new flooring, or updating the landscaping.
This makes your inherited property appealing to potential buyers. Finally, get an appraisal. This will help you set an accurate asking price and know what you can expect to receive if you decide to sell the property.
Advertising Is Key When Selling an Inherited Property
Once you’ve prepared your inherited property for sale, you’ll want to advertise it. The best way to find potential buyers is through real estate websites or public forums, such as classified ads or online forums.
You also may want to post signs on the property, particularly if you are selling it privately. Remember that even if you decide to sell your inherited property quickly, you want to be fair and transparent with potential buyers. You may want to disclose that you inherited the property in your ads and emails, just in case there are any potential issues with this.
Be Transparent With Potential Buyers
If you inherited a property from a loved one, there might be some issues with the original sale contract. If the seller had a mortgage on the property, you may have inherited the mortgage. If so, you’ll want to make sure you follow the same steps that a normal borrower would in order to close the mortgage.
In the event that the seller left a cash amount as part of the sale, you’ll want to make sure this money is legitimate, so get a title report on the property to make sure there aren’t any outstanding issues.
As mentioned earlier, you also may want to hire an attorney to go through the original sale contract and the will, if there is one.
Be Flexible with Closing
Inherited properties often come with sentimental attachments, so be open to discussing options with the buyer, such as a longer closing period or including some personal belongings in the sale. This can help facilitate a successful and amicable transaction.
It’s understandable that you may want to quickly sell the property and move on from any difficult emotions that come with inheriting it. However, rushing the process can result in accepting a lower offer or missing out on potential buyers. Take your time and thoroughly consider all offers before making a decision.
And again, consider hiring a real estate agent to assist with the sale. They can help determine the market value of the property and handle negotiations on your behalf. This will make your life a lot easier in the long run.
Bottom Line
Just because you inherited a property, it doesn’t mean you have to keep it. Selling an inherited property can be challenging, but it can also be profitable. You can find the best buyers and negotiate a fair price for your inherited property by researching the market value, setting a reasonable asking price, preparing the property for sale, and advertising it widely.
Another Option
All of these tips might sound good to you, but you’re in a hurry and don’t have the time, patience, or energy to go through all the steps needed to sell your inherited property. That’s where we come in.
At BiggerEquity, we specialize in buying properties quickly and effortlessly. We handle all the paperwork and take care of any necessary repairs so you don’t have to lift a finger. Plus, we offer competitive offers that often exceed market value.
If you’re ready to sell your inherited property and move on with your life, get in touch with us today. We would love to make you a real cash offer and take the burden off your shoulders.
Don’t wait any longer—contact BiggerEquity now to see how we can help you sell your inherited property.