The word inheritance may frighten you, excite you, or down right confuse you. Most people forget about inheriting property because it isn’t something we deal with on a day-to-day basis. But, when the death of a loved one occurs, inheritance property, bot real estate and personal possessions, falls into our lives without any warning. There are all types of inheritance property, but the one that pops up frequently (and will only continue to occur more often) is real estate.
What is property inheritance? Contrary to the common belief, it doesn’t just have to be a house. Some examples of inheritance property are land, equipment, apartments, or even a working farm. Getting the notice that you have inherited property may scare you at first, but after talking to a lawyer, knowledgeable real estate agent, and learning about your options, those nerves should settle down. Typically, you will have three options;
- Move into the property
- Sell the property
- Rent out the property
Maybe you’re not ready to give up the property; or maybe it’s just the best option for you and your family at the time. No matter the reason, deciding to move into the inherited property is a very common solution. There are a couple of great reasons to decide to settle into the new home;
- It gives you time to sort through personal property. By organizing the deceased’s possessions, you can decide if there is anything worth money or valuable to you. You also won’t feel rushed since you’re on your own schedule.
- You can work on the house and eventually increase its value.
One downfall for moving in could be that you’ll have to pay property tax for that land, but the upside is that you will avoid paying any potential capital gains taxes from a sale.
If you decide that moving in just isn’t the option for you, then you need to consider selling or renting it out. Both options can make you money if the property is in reasonable condition. Some sellers decide that renting it out is a better option. New owners may live out of state and are unable to deal with the long process of trying to sell, or the property isn’t highly marketable. On the other hand, some new owners don’t want the stress of having to be a landlord. When property negotiated, both renting an inheritance property and selling an inheritance property are ways to receive excellent returns. Inheriting a property should be a blessing, not a curse, so remember – if there’s a will, there’s a way!
The Premier Team is an experienced team of Washington, DC real estate professionals ready to tackle any of your inheritance property challenges. Together, we can help you move through the probate process without any of the usual pitfalls.
Contact Gene Mock, Associate Broker, Premier Team, Keller Williams Realty 703-342-8100 for more information about inheritance real estate