Just like inheriting property may be both a blessing and a challenge too. Thus, if you inherit property in Texas, for reasons of financial benefits, selling it might not be an easy task: there are so many legal, financial and emotional issues to be considered.
This comprehensive guide answers many of the questions property owners in Texas have regarding the selling of inherited real estate, from the legal implications of selling inherited property to preparing the property for sale.
This Property is Inherited
On the death of a loved one, their real estate plus other assets are distributed in accordance with the terms of their will if one is written, or by the laws of intestacy (the order the law says things will be distributed in) if no will is written.
The way to sell inherited property in Texas can differ in many ways according to the situation. The first stop for owners thinking about selling is to understand the nuances of inherited property.
1. Legal Ownership
If you inherit property, you may not take sole ownership of it automatically. If you are a multiple heir the property will require working together to figure out how you will be managing or selling the property. Legal ownership can be established through:
Probate Process: It requires a multitude of documents to prove the right heir or the successor, and in this process, assets are divided among the deceased in a will. It is processed through probate, which is the step that comes before it is sold, if the property is a property of a probate estate.
Affidavit of Heirship: In the case where the deceased did not leave a will behind, heirs may use an Affidavit of Heirship to determine who owns what and transfer real property from the deceased.
2. Title Issues
When selling inherited property, you should make sure to clean up that title issues before it. It can include liens, mortgages and other encumbrances which could impact on the property’s marketability. Before you proceed with the sale you might want to fix these issues and you can do this by conducting a title search.
Assessing the Property
You have to establish legal ownership of inherited property before you come to know about the property. It entails being aware of its condition, value, and what may need repaid or updated before putting it on sale.
1. Property Valuation
In retail real estate a primary consideration is to establish a competitive selling price and in the determination of such price, knowing the property’s value is imperative. Consider the following methods for property valuation:
Comparative Market Analysis (CMA): Your real estate agent can give you a CMA (comparative market analysis), which is an evaluation of your property based on sales of similar homes and properties nearby.
Appraisal: By hiring a professional appraiser you can have a property valued accurately, taking into consideration a variety of factors as they relate to the property such as its condition, its location and current market trends.
2. Property Inspection
A good property inspection surveys the entire home inside and out to look for any repairs or upgrades needed. The problem can be anything from a small cosmetic fix to a serious structural issue. Solving these problems before you sell your home may also increase its value and attract more potential buyers.
Preparing for Sale
Next, the property is assessed, and once that’s complete, it’s time to prepare it for sale. The process involved can have a huge impact on how quickly and profitably the property actually sells.
1. Cleaning and Decluttering
Potential buyers are attracted to property that appears clean and organised. However, you might want to get professional cleaners to keep the house in top shape. You can also declutter by eliminating personal belongings and too much furniture in order to create a more inviting environment.
2. Staging the Property
Furniture and decor staging is the placement of furniture and decoration to make best use of the property’s features. It enables people to imagine living in space. If you can either have a professional do the staging or if you can use existing things in your home created in an interesting fashion.
3. Curb Appeal
First impressions matter. Having that curb appeal interests more buyers. Small things, like landscaping, fresh paint, and tidy walkways can make the biggest difference.
Selling the Property
When the property is ready and contractual issues are taken care of, you can now sell the inherited property. This includes multiple steps that make up the process.
1. Listing the Property
When the property is ready, you can find it on the market for sale. Consider the following tips:
Choose the Right Price: Work with your realtor to list your property for a competitive price using data on your property’s value and the market conditions at the time.
Effective Marketing: Advertise online listings on social media or traditional means so potential buyers can find your unit. Photos and descriptions are the ones that make the property enticing and enticing photos and detailed descriptions will improve this even more.
2. Showings and Open Houses
Hold showings and open houses to show people the house. Make sure the property is clean and tidy for these events. You may have your real estate agent schedule and promote these activities.
3. Negotiating Offers
When you receive offers, work with your real estate agent for them to evaluate and negotiate terms. Don’t just look at the price, but look at contingencies, closing dates, other factors that could sway your decision one way or the other.
Closing the Sale
Once you have an offer on the table, you need to close the sale. This involves several important tasks:
1. Due Diligence
During the due diligence period, the buyer will then inspect the property, tie up financing, and review documentation. You’ll need to be prepared to provide the title, property disclosures and any inspection reports.
2. Closing Process
The closing process involves several steps, including:
- Title Transfer: Make sure all the title issues get resolved and the actual title is clear ahead of the transfer to the buyer of the property.
- Finalizing Financial Transactions: The financial stuff falls on a title company or attorney to take care of (e.g. distributing the sale proceeds).
3. Handover of Keys
When everything related to the sale is complete with all paperwork finalized, you can hand over the keys to the new owner. Congratulate yourself for this milestone for you have come through such a long journey of selling the inherited property.
Moving On
However, if you do have sentimental ties to the property you want to sell, selling inherited property can be emotional. Once the sale is done, take some time to reflect on the journey and the memories attached along with property. It can be hard to move on but it also means finding new opportunities for growth and change.
1. Emotional Considerations
All of this is extremely important to acknowledge, in the way that you feel, in order to process. If you find yourself needing support, consider turning to friends, family, or professional counselors. One way to do this is to share what you are feeling.
2. Financial Planning
Once you get the proceeds from the sale, decide how you want to invest that money towards your goals. Whatever it may be, whether you invest, save or purchase a new property, make sure to plan its direction with the big picture in your mind.
In Texas, selling inherited property can be a complicated, though worth it, process. It’s important to understand the legal, financial, and emotional components of the journey so you feel confident on your path. Each step from assessing the property to preparing it for sale, dealing with the legal elements to the successful close of the deal is vital for a successful result.
If you get the right guidance and support, you can make the right decision and make something that seems challenging into something that could be a good time to reorganize. And remember, you are never alone in this real estate process whether it’s been a few weeks, a few days, or even if you are just starting out – you’ve got real estate professionals or family on your side.
