Getting a house as an inheritance in California is the lucky break most people want.
But some of us might not want this break just yet.
In such cases, one of the first things that you may think of is to sell the house.
But selling an inherited house in Sacramento is not as easy as it may seem.
In this article, we’ll go over some great things that’ll help you with selling an inherited house in Sacramento without breaking a sweat.
So, let’s get started.
How Can I Sell An Inherited House In Sacramento?
Selling an inherited house in Sacramento is quite similar to selling a pre-owned home.
However, two things can impact the sale: Probate and Mortgage.
Probate
The property you inherit in Sacramento must go through the probate process.
The process may take longer if there are multiple heirs to the property or the deceased did not leave a will.
As a part of the probate process in Sacramento, you must submit documents such as the death certificate and proof of ownership.
However, you can avoid the probate process if you have a Transfer on Death (TOD) deed.
The deed allows the owner to transfer the property to another person as a beneficiary.
You can apply for this document at the county clerk’s office.
You can also avoid the probate process if the inheritance is set up as a trust.
A trust basically allows the transfer of a property from the owner to the beneficiary.
However, if the owner is alive after the transfer, they can use the assets as if they still own them.
Mortgage
Selling an inherited house in Sacramento can be difficult if the property has an outstanding mortgage balance.
If you inherit a property that has an outstanding mortgage, you can sell it to pay off the debt.
The profits generated from the sale can be shared among all heirs.
If you don’t want to sell the property just yet, you can transfer the mortgage to your name along with the property.
This allows you to live in the property or rent it out while paying off the debt at the same time.
If no inheritor is willing to pay the mortgage, the property may go up for foreclosure.
Taxes On Selling An Inherited House
In the state of California, you can not be taxed on your inheritance.
However, you will have to pay taxes on the income generated by the inherited asset.
Given this, you may have to pay capital gains tax when selling an inherited house in Sacramento.
But, you will only have to pay taxes on selling an inherited house if you profit from the sale.
The profits from selling an inherited house in Sacramento are calculated by determining the difference between the sale price and the price of the house when you inherited it.
You can still subtract costs for improvements and the sale process from the profits before it is taxed.
However, you may be able to avoid the capital gains tax if you ensure that:
- You had ownership of the house for five years before you chose to sell it.
- During that period, you used the house as your primary residence for at least two years.
Top 8 Tips For Selling An Inherited House
The first thing you need to understand is that selling an inherited property can be a bit difficult if there are multiple heirs.
In such cases, you should appoint someone as the head person for the sale.
The person you choose must be neutral and must not have any positive or negative bias towards one or more heirs.
Selling an inherited house in Sacramento can be a complicated thing to do despite having these issues sorted out.
You can use the tips mentioned below to help make the process easier.
Sort The Documents
Selling an inherited house in Sacramento involves a lot of paperwork.
So, it’s better to have all the documents you need in order.
Mortgage statements are some of the most important documents you need to have with us when selling an inherited property.
This will help us show the potential owner(s) that all dues on the property have been cleared or the remaining amount they’ll have to pay if they buy the house.
Determine The Price
When selling an inherited house in Sacramento, you need to figure out the ideal price.
The current average value of a house in Sacramento is a little over $465,000.
There are a number of things you can do to determine the price.
The first thing you can do is look at the market trends and the average prices.
Watch this video to learn more about the Sacramento housing market.
Market Update Sacramento County June 2023
You can also get a property appraisal that tells us the condition of the property and the estimated price.
You can also see the prices of houses that are similar to yours.
Use Virtual Tours
The truth is that buyers are probably just as busy as us.
This means that they don’t really have the time to physically come and see the inherited house.
However, you can leverage technology and record a virtual tour of the property you’ve inherited and send the videos to potential customers.
Manage Other Heirs
In some cases, you’re not the only one who’s inherited the property.
There can be other family members who share the inheritance with you.
It’s common for disputes to arise in such situations.
So to avoid such problems you need to sort everything out beforehand.
You need to make sure that everyone’s on board with the sale.
You also need to decide the responsibilities and amount of profit for each heir.
Sell To A Family Member
Selling an inherited house to a family member is another great option.
The benefit for you here is that the family member you sell to will already be familiar with the property and the owner you have inherited it from.
This can take a lot of things like verification and property inspection out of the way and help us sell the house fast.
Also, if you inherit the property with other family members who don’t want to sell, you can simply sell them our share of the property and avoid familial disputes.
Make Necessary Repairs
The property you inherit might not be in the best shape.
In such cases, you do have the option of finding a buyer and selling an inherited house in Sacramento in its current conditions.
However, you may have to accept a lower price.
To avoid this, you should make all the necessary repairs to the property.
Having a property that’s in top-notch condition will make it easier to sell, and you can even charge a higher price for it.
Work With A Real Estate Agent
Selling an inherited house in Sacramento can be something that requires a bit of running around, and you might not be able to do that.
This often happens because you either don’t know the process or you’re just too busy.
A professional real estate agent knows all the ins and outs of the industry.
Working with a real estate agent can help you benefit from their expertise.
You just have to pay them, and they sell the house for you in no time.
Sell To A Cash House Buying Company
Cash house-buying companies make selling an inherited house in Sacramento easier.
These companies can purchase your inherited house in an “as-is” condition.
All you have to do is contact them, receive an “as-is” offer, and sell the house you’ve inherited.
The offer these companies make is a no-obligation offer meaning if you don’t like the price, you can refuse to sell.
Final Thoughts
Selling an inherited house in Sacramento can be a bit challenging for those who are not familiar with the process.
Taking care of things like probate and outstanding mortgages can help you address challenges and sell the house faster.
Some tips for selling an inherited house include selling to a family member, making necessary repairs, and ensuring agreement among multiple heirs.
If selling an inherited house is something you’ve been thinking about, then contact us and get a cash offer today!
Frequently Asked Questions (FAQs)
How do I sell an inherited house in California?
Selling an inherited house is similar to selling a pre-owned property. Determining the price and working with a real estate agent can help you sell the house fast.
Do I have to pay taxes if I sell the inherited property?
Yes, you have to pay capital gains taxes on the inherited property if you profit from the sale. However, you can deduct expenses from the amount.
How can I avoid probate?
To avoid probate, you need to set up a living trust for the asset. The trust document is similar to a will and names someone as a trustee who will inherit the asset.