There comes a time in many lives when you inherit a house in Omaha. You and your siblings now face a cloud of choices. What to do with the house you inherited; renovate it, rent it, live in it, or sell it? If you live out of state, it may not be convenient to spend a lot of time in Omaha.
Take a deep breath. There is no gust of wind forcing you into a decision. You and your siblings will have a lot of different emotions and memories about the home. Think about what the home means to each of you. Some may want to sell and split the proceeds immediately. Others may think about living in the house again or renting it out. You all may want to know what the house is worth.
Seek the advice of professionals. A real estate agent or real estate investor is a must. The agent or investor can walk through the house, see if work needs to be done to sell it and give you a feel for the neighborhood and the house’s worth.
The real estate investor can offer cash and close in less than 30 days. There are no real estate commissions or closing costs. You can sell the house as-is.
Consult an attorney specializing in taxes and real estate. These professionals will answer any questions you have and will help you make selling decisions.
Clean the house. As you clean, you can divvy up the folks’ personal belongings and arrange to sell the rest in a garage sale or estate sale. If you plan to sell, the house will present a better face to the public if it is clean and empty or staged.
Here’s a twist: Decide to sell or rent after the house is clean. The light may go on when you see structural damage. The family may decide to sell as is or rehab the dwelling to bring it up to today’s home buyer standards.
People always ask if you have taxes due on the inheritance. If there are taxes due, the estate of the deceased pays the taxes on the difference between cost and market value. Your cost or basis in the property is the market value at the date of death. If your new or stepped up basis is $350,000 and you sell the property for $400,000, you would have a gain of $50,000. Each sibling would pay any taxes due on their share of the gain.
Understand in this process, nothing can tear a family apart more than money. Be wary of arguments about renting vs. selling; what price to sell the house; who gets what possessions; what is the proper sharing arrangement; what professionals to use; and how to invest any commingled money.
Preserve your capital. Old money has a saying, “Never touch the principal.” They live off the income. Capital can be hard to accumulate. Capital can disappear like the hiss of a tire losing air. Even if you save 10% of your income each year, it takes considerable determination to save and invest to accumulate a large savings account, especially in this interest rate climate. So treat it kindly. Would your parents, who passed on leaving you their wealth, feel good about the way you spend your inheritance? Consider hiring a professional investor.
As investors, we are in business to make a modest profit on any deal. However, we can help homeowners out of just about any situation, no matter what! There are no fees, upfront costs, commissions, or anything else. We offer the simple truth about your home and how we can help you sell it fast to resolve any situation.
If you’d like to give us a ring, we would be more than happy to spend some time with you to help you understand the process and to get all of your questions answered. You can reach us at 402 999.0577.