How To Sell An Inherited Property
In most cases, inheriting a property is an inconvenience. Aside from dealing with the emotional stress from a loved one’s passing, one also has to deal with the responsibilities of being the Personal Representative of their estate.
This is why selling an inherited property is the most common course of action people take. If this is what you’re interested in doing, here are ways on how to sell an inherited property:
Work with a Real Estate Agent
The most common way of selling an inherited property is through a real estate agent. An experienced agent can help with all the legalities of selling an inherited property, share information about the house listing with other agents and the public through MLS (Multiple Listing Service), and help with all the paperwork. It’s easier for the seller because he or she doesn’t have to do most of the work.
You, however, need to cooperate with any suggestion the agent makes like:
- Do house repairs
- Do minor or major house improvements
- Get the house ready for pictures
Commonly, sellers don’t have the time to get the house ready nor the budget to do repairs or renovations. Working with an agent also does not guarantee a quick close. The process can take months depending on the marketing strategies the agent applies and the condition of the local real estate market.
Another con in working with an agent is commission fees. These fees differ in percentages depending on the state. In Minneapolis, for example, the average realtor fees range from 2%-6% per Zillow.
Sell the House Yourself
This process is called FSBO which means For Sale by Owner. This process basically means that the owner will sell the property without the help of a real estate agent. The owner will be in charge of how to market the house, show it off to buyers and do all the necessary paperwork.
FSBO can save an owner from paying commission fees, but the owner needs to be knowledgeable of what is required to sell a house. Despite the owner being in charge of the whole process, it does not guarantee a quick close because offers might not come in when appropriate marketing strategies are not implemented.
Sell to an Investor
Investors are people or companies that are willing to purchase properties AS-IS. This is the best choice for most because the seller doesn’t have to fix the property up, bother with preparing it for showing or deal with realtor commissions. This may not be the traditional route for an inherited property, but it has a lot of advantages, especially under circumstances like:
- There’s more than one heir to the property and both heirs are interested.
- The property is already run down and selling the property in as-is condition.
- There’s a problem with the title of the property.
- Having the flexibility of selling the property on your timeline for a quick close.
- Saving on fees (e.g., realtor and closing costs) and putting more money in your pocket.
In all of these cases, it’s more convenient to sell the property off to an investor. They will most likely pay cash as well so the asset is quickly liquidated. For more real estate tips and advice, be sure to visit our blog here.