Have you inherited a home and begun looking for the best option as you move forward? Are you uncertain of the optimal financial decision for the home and for yourself?
Dealing with an inherited home can be emotional and stressful – we are here to help. In this article, we will outline the costs you may incur with an inherited home and the best options for avoiding what can be hefty fees.
#1 – Inheritance Tax
Fortunately for anyone inheriting a home in the state of Texas, they do not need to pay any taxes. Texas has no estate tax; neither does it require individuals to pay income taxes on inherited properties. However, if the estate is large, then the individual may be required to pay federal taxes.
#2 – Repair Costs
Depending on the condition of the home, as the new homeowner of the inherited property, you may be looking at costly repairs. If you want to sell the home, you will need to complete the proper inspections to determine the status of the interior and structure of the home. This process secures the safety for the future homeowners. Hopefully, the home was well maintained over the years! However, it may be possible that you will be confronted with minor repairs or even expensive repairs to the foundation – these burdens can be unavoidable. As the new homeowner, you have incurred these costs whether you want them or not. Inherited property can be a financial burden on many families, especially those who do not have extra cash lying around.
#3 – Agent Fees
Once the home has been repaired, it is time for the sale. If you decide to place the home on the market, it will be necessary to hire a realtor to market and sell the home. When determining which realtor to move forward with, it is imperative that you complete the necessary research on that realtor and their experience to ensure that you are choosing the best option. Selling a home can be an extremely long process, and if you pick the wrong realtor, you may find yourself dealing with months of unsuccessful marketing. Additionally, the realtor you select will also require a fee once the home is sold – they are typically 6%. Make sure you complete your due diligence because selling a home costs you money!
#4 – Attorney Fees
When selling the home, you may also want to to consult an attorney who will review closing statements and ensure that you are getting a fair deal on the home. Additionally, the attorney will review the escrow process to confirm that the transaction is being handled properly – the last thing you want at this emotional time is to lose money due to fraud! Attorney fees prices can vary depending on how extensive their work is.
#5 – Closing Costs
The final major fee that you must pay on your inherited home is the closing costs – this can average anywhere from 2 percent to 5 percent of the home’s value. These costs are generally unavoidable and required by the buyer’s lender.
How To Avoid 100% of These Fees on Your Inherited Home in Texas
Coping with a loss can be emotionally draining, and adding financial stress can really take a toll on an individual. The combination of responsibility, ongoing marketing, attempts to sell, and the mounds of fees that an individual must pay can make inheriting a home feel like a full-time job.
There is, however, one convenient option that allows you to avoid paying 100% of these fees…sell to a seasoned investor who is familiar with the market.
Selling to Gulf State Homebuyers can provide you with the peace of mind that you need when dealing with the sale of an inherited home. Not only are we understanding and compassionate home buying company, but we also cover all fees associated with the home sale; we sell the home as-is, so there’s no need for repairs. There’s also no need to hire an agent – we can assess and purchase the home straight from you; we have an attorney on staff who will ensure your security on the deal – we even cover closing costs!
We make the process quick and easy, allowing you to focus on your emotional stability and healing. Don’t waste your time. With our competitive offers, we provide the best option for anyone who is looking to sell. Contact us today and we can evaluate your home, free of charge. Click here to get started with our quick, 1-2-3 buying process.