If you’ve found yourself the recipient of an inherited property, it can feel like a lot to juggle the many legal responsibilities that come with making sure everything is handled properly.
It’s no secret that the process of selling an inherited property can be a bit daunting, but this guide has been written with one goal in mind – to put together all the critical information you’ll need for selling an inherited property with minimal hassle. We’ll call this guide your: Inherited Property 101.
What are the Initial costs of inheriting property?
- Property Insurance 101
When you’re not living on a property, it’s important to make sure that the building’s insurance covers unoccupied properties. Most insurers will ask for proof of disengagement and may require photo documentation of each visit with their inspectors during this time period where they can see how often someone enters or leaves your home.
There are a few factors that go into insurance costs for an inherited property. The most important factor is the value of the property. The higher the value of the property, the more it will cost to insure. Other factors include the location of the property and the age of the property. If you are inheriting a historical home, for example, it will likely be more expensive to insure than a more modern home. Another factor to consider is whether or not you plan on living in the inherited property or renting it out. If you plan on living in it, your insurance costs will be lower than if you were to rent it out because you will be considered a higher risk. Lastly, if there are any existing damages to the property, that
- Mortgages & Loans 101
You may be surprised to learn that even after a property has been inherited, mortgages and loans can still exist. This is true especially if the owner paid off all their debts before passing away, or left unpaid balances with no will in place regarding how these obligations should be dealt with at death – which could cause an unexpected hike in inheritance costs down-selected by third parties who don’t know about your status as heir.
There is always room for negotiation though: sometimes it just requires speaking up early enough so as not to find yourselves unexpectedly charged up when you least expect it.
So what exatly are the mortgage and loans costs of inheriting property in Florida? Well, it depends on the property. If you inherit a family home, there may be no mortgage or loans costs. However, if you inherit a commercial property, the inheritance could come with liens or mortgages that must be paid off.
For example, if you inherit a $1 million commercial property with a $500,000 mortgage, you would need to pay the lender $500,000 to clear the debt and own the property free and clear. The good news is that most lenders will work with heirs to help them pay off inherited debts over time. So long as you are making regular payments, the lender may be willing to waive certain fees or penalti
- Traveling and Inspections 101
Assuming you have inherited property in Florida, the average travelling and inspection costs can vary greatly depending on a number of factors.
For example, if the property is located in a remote area or is difficult to access, then travel costs can be a bit higher than an easily accessible location. In addition, if the property requires significant repairs or renovations, inspection costs will also be higher.
In general, however, you can expect to pay between $500 and $1,500 for travel and inspection costs when inheriting property. This includes both airfare (if necessary) and ground transportation, as well as any fees associated with hiring a professional inspector.
- Maintenance 101
There isn’t one definitive answer to how much your inherited property with cost to maintain since the costs of maintaining a property can vary greatly depending on the specifics in question, including: its size, condition, and location. However, here are some ballpark figures to give you an idea of what you might expect to pay:
Property taxes in Cocoa Beach FL typically range from about $1,000 – $3,000 per year.
Home insurance rates in Brevard County FL can vary widely depending on the size and location of the home, but typically average at around $1600 per year.
The importance of maintaining homes cannot go unnoticed. It includes regular maintenance, such as mowing lawns and trimming hedges, but it also means more serious repairs like fixing leaks when they arise!
It’s important to carry out an initial inspection at your property before you start planning anything else; this will help ensure that any essential work can be carried out quickly with minimal disruption or delay while still giving time for other things in life!
How to Sell an Inherited Property 101
- Is there any will?
If you’ve inherited a property in Cocoa Beach, Florida, you may be wondering how to go about selling it. The process can be a bit complex, so it’s important to have all the information and guidance you need before getting started.
The first thing you’ll need to do is determine whether there is a will. If there is, it will likely spell out how the property is to be sold and who is responsible for doing so. If there is no will, then the estate will need to go through probate and the court will oversee the sale of the property.
At this point you’ll want to consider and decide whether you want to sell the property as-is or make any repairs or improvements yourself.
- Apply for probate
When someone dies without a will, their property goes through an official process called Probate. This is where the list of all financial assets in that person’s estate gets drawn up and given to whoever qualified as executor.
Some people are not aware of the legal requirements before they can sell an inherited property. It is recommended to talk to a solicitor that specializes in will & probate law or other types of attorneys for more information on how this works out best in your situation.
However, there can be situations where probate may not be needed if the person died:
- Had jointly-owned assets (cash, property, shares, cars, etc.), as they pass automatically to the surviving owners
- Only Had savings on premium bonds
You should contact each asset holder, such as banks and mortgage companies to find out if you need probate. The rules apply differently for each organization when the time to sell an inherited property or house arrives – especially in cases where there has been a recent death resulting in those assets becoming interstate (i.e., without heirs).
- Time to sell your inherited property
There are three available options to sell your inherited property. Each one is listed below:
- Auction House Sale
- Selling house quickly
- Chain-free selling
- Increased competition
- Seller remains in control
- NO guarantee of sale
- Uncertain sales price
- High fees
- You’ll have to move out quickly
- All sales are final
- Traditional Estate Agents
- Good way to help get a good price for your property
- Should have a good understanding of the area where the property is located
- Takes longer than other routes of selling property
- The final sale price is often re-negotiated
- You might be tied to a long-term marketing contract until property is eventually sold
- Regulated property buying company
- Discrete sale within 28 days
- No further negotiation once the sale price has been agreed upon
- You don’t have to pay for your solicitor’s fees as they will be paid for you
- Cash sale with no mortgage funds required
- Pay Inheritance tax
If you’re the inheritor of a property in Cocoa Beach, Florida, you’ll need to pay property taxes on the property. The tax collector’s office can help you determine the amount of tax that you’ll owe, and they can also provide information on how to make payments.
- Pay Income tax and Capital Gains Tax (if required)
When you inherit property, you may be responsible for paying taxes on the income and capital gains from that property. Depending on the value of the property and your personal financial circumstances, you may need to pay federal, state, and local taxes.
If the property is located in Cocoa Beach, Florida, you will need to pay income tax and capital gains tax to the state of Florida depending on the aforementioned factors. You can file your taxes online through the Florida Department of Revenue website or by mail. If you have any questions about how to file your taxes, we recommend working with a certified tax professional like a CPA.
Worried about choosing the right property buying company?
Selling your inheritance can be heart-wrenching, but it may help you move on and finally achieve those long-held dreams.
You might have an emotional attachment to this property which is making the process hard for you. While it may be difficult, a clean break could help move on from this situation better than anything else would; plus, there is hope that doing so might open up new opportunities in life.
The easiest route to selling your inherited house is to look for a reputable all cash buyer. If you decide to go through this route, look out for companies that have experience with inherited properties as they’ll know what needs to be done.
There are a lot of steps involved in selling an inheritance, but it doesn’t have to be hard. Our team at 321 house buyers can make the process much easier for you by providing their services and expertise so that everything goes smoothly without any headaches or worries on your end!
Don’t Hesitate to Reach Out!
Want to get the most money from your property in a matter of weeks? Contact us now or call 1 (321) 323 9093 for selling homes quickly throughout Brevard County, Florida! Or visit our website to book, schedule your free consultation and get a cash offer.