How to Handle an Inherited House in Syracuse NY: 4 Key Tips to Simplify The Process
So you inherited a house in Syracuse NY, now what? Inheriting a home from a deceased relative can be a very difficult and emotional process. First, you are dealing with a relative that has just passed. This is always a difficult time for everyone involved. It can be very stressful and emotional. With all of that on your shoulders, typically you will be left with some unfinished business from your deceased relative, such as the real estate. It can be very difficult for some to maintain their own estate; let alone the addition of another property. This can very overwhelming for all parties involved. Once you have begun to get a handle on the complete situation and have had some time to take it all in, sit down, take a deep breath and understand that there are different options for you to work this situation.
1) Understanding the Will
The first step of process is going to be to look over the will. You should read through the will (will's can be tremendously long) and determine if the will is valid. If the will is valid then the court of law will follow the instructions of the deceased and make sure their debts are paid and assets are delegated properly. Even though a will is beneficial to find out which assets will be distributed to which individuals. Sometimes even if you have a will, the process of probate will take place depending on the complexity of the will. Going through probate takes the control of inheritance from the family that is very expensive, time consuming, and "public," so any interested party can see what the deceased person owned and who the deceased person owed money to.
2) Discuss A Plan with Others Who Have Inherited Home
So after you read through the will, you realize that there are other family members who are represented and are also attached to the inherited property. It is best to discuss with other family members and see if you can come up with a plan as to what you intend to with the property. You will have differing of opinions throughout this process. Some of the members will want to sell, some will want to rent and some may want to move into the home, who knows. Since this process can be very complicated it is a good idea to have a couple meetings in regards to this matter and see if you can come up with a solution within your family. It is best to have a good understanding of all of your options when going through this process. Each option offer it's own unique benefits depending on the financial status (of all parties), condition of the property and current market environment in your local market.
3) Don’t Forget! Taxes Are Due on The Inherited home
So while you are going through discussions on what vehicle you will use to dispose of the home, understand that taxes will be due on the property when and if you decide to sell the property. Be sure to bring this up in discussions with your family members so they are aware of the complications. Once the deceased owner of the house passes, the primary on the will be in charge of taking care of the taxes due on the property. This can be a situation where inherited homes can be an issue. Depending on the state that you live in (foreclosure will start at different times), in the state of NY, you have three years to pay your taxes before your house will be foreclosed on. So, just be aware that taxes will have to be paid and include this into your plan with discussions on what to do with your inherited house in Syracuse NY.
Besides paying the property tax on the house, the inherited property will also be subject to capital gains tax depending on the sales delivery method you choose. Once the property own passes away, the value of the property will be adjusted through a "stepped up" basis. So, say there is no mortgage on the property and you sell the property for $100,000. Instead of paying taxes on the whole $100,000, you will only be required to pay taxes on the difference between the "new" full market value and the sales price.
For example, the full market value of the property you inherited was deemed at $100,000 and you ended up selling the property for $100,000, you would not have to pay any taxes on the sale.
4) Consider Selling the Inherited Home
If through your discussions with your family, you decide that you are going to sell the home. You should first determine if there is a mortgage on the property. I would seek some legal help in this matter and either call a real estate lawyer or contact a title company, both of these mediums will be able to answer your questions. Knowing if there is a mortgage on the property or not will help you understand how much profit you should expect from the sale and also how much capital gains tax will be owed upon the sale of the inherited home. The current capital gains tax is 15%, so that is the amount you should expect to tax. If this is the route you go be sure check out some of the steps to sell your home in this post - ( Steps to Sell Your Home )
As we briefly spoke about before, there are a couple options that you have when considering to sell your inherited property in Syracuse NY. If the property is in great condition, in a good area we suggest that you sell the property the traditional route and get maximum value for the property. If the property you inherited is rough shape, may be in a bad area of town, has liens, back taxes or any other unfortunate situation we suggest that you consider selling to a cash buyer or real estate investor. This type of sale will allow you to liquidate the property hassle free and relieve you from the stress of disposing of this property.
Take some time and educate yourself on the process of inheriting a home. Try to understand the options that you have when making a decision on what you want to do with the property. When you are going through situations like these, sometimes you can feel that you are the only one in the world this has happened to but believe me there are people out there that want and are willing to help. If you are having trouble handling this situation yourself, seek legal help. All in all, make sure you are making the best decision for you and your family.
If you are looking for an honest and reliable real estate investment business with the ability to close on your schedule then give us a call at 315-516-8023. We would love to have a conversation with you and learn more about your situation.
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