When You Want to Sell the Inherited House Where Your Sibling Resides
The death of a family member is devastating. Nothing adds more stress to such a situation than that of jointly inherited property. It is likely that the deceased loved one had good intentions by leaving equal shares of the property to loved ones. But, when family members jointly inherit a house, there’s extra tension because they often don’t agree on what to do. Additional stress is added if a sibling is living in the inherited property and wants to stay there. That sibling has an incentive to prevent the sale of the house and can make the situation very difficult. However, if you want to sell the inherited house, there are a few options.
Sell the Property to Your Sibling
If your sibling is comfortably living in the jointly inherited house, they likely don’t want to move. One of the most logical options to offer is that of a buy-out. You’ll need to obtain an appraisal of the home to determine market value. Based on that value, your sibling can pay the market value of the home minus his or her share. This would make your sibling the sole owner of the home and would allow them to continue to reside at the property. Conversely, you can buy out your sibling. Simply pay them for their share of the value of the home and then the home can be sold. This will only work if your sibling is willing to accept your offer and move out of the home.
Obtain an Inheritance Partition
When an agreement can’t be reached it may be necessary to get the courts involved. To get the process started, you would need to file an inheritance partition with the court. At this point, it is up to the court to force the sale of the property and divide the assets. In some cases, the court will auction of the home at the courthouse which results in even less money for the owners. You’ll also take a financial hit because of legal fees and court costs. An inheritance partition should be a last resort if all other avenues have failed. This action has significant financial consequences and will cause added emotional turmoil among family members.
Sell the Home With a Rent Back Option
If your sibling insists on staying in the home, you can offer to sell the inherited house with a rent back option. You and your sibling would receive proceeds from the sale of the home. Before the closing takes place, it is essential for your sibling to have a rental agreement in place. Lease terms, such as rental amount and length of the lease, should be well defined. You’ll get cash for the home and your sibling can stay in the home which means everyone is happy.
Convert the Home to a Rental Property
One option to consider is turning your home into a rental property. If it is in good condition and the rental market is strong, you could have a steady stream of income. Be prepared to show your sibling the potential cash flow from renting the property. This may provide the incentive your sibling needs to move out of the home. Keep in mind that the home will need regular maintenance and upkeep that will be your responsibility. Keep in mind that major repairs can be expensive and the upkeep can be time-consuming.
Sell the Home Quickly
Inheriting a home might seem like a windfall, but you will also inherit any debts associated with the home. You may not have to pay capital gains taxes, but you could get hit with other hefty taxes. When you don’t want to bother with these issues you can request a cash offer from SellHouseFast. We’ll make a fair cash price offer for your home. If you accept the offer, you’ll get the cash from the sale without going through a lengthy process. Request your cash offer today so you can make an informed decision to sell the inherited house.