Congratulations! You’ve inherited a house!
But wait, not so fast.
Initially, many consider inheriting a house a windfall. But in reality, that house may come with several problems that you may not be prepared for. Homes come with many costs, and inheriting a house isn’t always financially beneficial. Often, properties left in wills are older and not in the best condition after time has taken its toll. In addition to the tasks of going through belongings and cleaning out the property, you may be dealing with emotional strains as well. In many cases, there are multiple heirs, and choices may be very emotionally charged at this time, which only adds to the stress you’re dealing with. Let’s explore five things you should know about inheriting a property in Tucson.
Regrettably, many people inherit a great deal of debt along with inheriting a property in Tucson, from mortgages to liens to unpaid taxes. Primary lien holders, like equity lines of credit and federal tax liens, will receive payment first when you sell the property. So the first step in dealing with your inheritance is to assess where you stand with any debtors, such as contracted workers holding mechanics liens against the property for improvements, judgment liens, and the mortgage.
While inheriting a property in Tucson doesn’t necessarily trigger more tax liability, you should know that what you decide to do with the property might. If you make improvements, you can write these expenses off. There are also property taxes to consider; if they aren’t a part of an existing mortgage payment, be sure to get familiar with any deadlines. Inherited property is subject to a step-up-basis adjustment in the value of the property, which will affect the capital gains taxes you may owe on any growth moving forward.
As houses age, they are more prone to failure, so maintenance costs are typically higher for older homes. Letting routine maintenance fall by the wayside can quickly escalate into significant issues. In addition, some homes have outdated features that require specialized knowledge for proper care. Calling in an expert is best in these cases, which is a common occurrence when inheriting a property in Tucson.
Calls to repair specialists for more significant issues also increase with older properties. Before deciding to take on the property as your own, you should have a professional inspection and estimates from at least three professionals, giving you a better idea of what you’re up against if you hold onto it. Often, when opening up a section of the house for one repair, other issues come to light, so keep extra funds on hand to cover unexpected expenses during the repair process. Remember, too, to request an estimate of the time you’ll be holding onto the property until it’s ready to be lived in or sold, as you’ll need to factor in the holding costs, such as mortgage payments, insurance, taxes, and utilities.
Listing a property on the MLS carries costs and burdens as well, between prepping, repairs, and showings, not to mention the inspections, real estate commissions, and closing costs. Real estate agents can’t provide a closing date, either, so another thing you should know about inheriting a property in Tucson, is you may end up waiting months to find a buyer.
If you’ve inherited a house in Tucson and are looking for a faster, easier option to turn that property into cash, selling directly to a cash buying service is by far the fastest and easiest solution. Cash home buyers can buy the house as-is; no need to repair or even clear out unwanted things. The professionals at Easy-Man Buys Houses will help you compare your options, making this time a little easier on you. In addition, we offer a guaranteed closing date, which can be in as little as one to two weeks. At Easy-Man Buys Houses, we lay it all out on the table and compare the benefits of listing vs. selling directly, so you can make the best decision for your situation. We will answer any questions you may have and walk you through whichever solution you decide works best for you, whether that’s selling for cash, listing on the market, or holding on to the property. Reach out today to learn about your options.