If you grew up here, there comes a time in many lives when you inherit a house in Omaha. You and your siblings now face some difficult choices. What to do with the house; renovate it, rent it, live in it, or sell it?
Take a deep breath. Nothing has to be done immediately. You and 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 within a week to a month. No real estate commissions or closing costs will be charged. The house will be sold as-is.
Another professional could be 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.
Decide to sell or rent after the house is clean. Cleaning may reveal structural damage. The family will need to decide to sell as is, or rehab.
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 any comingled money is to be invested.
Preserve your capital. Old money has a saying, “Never touch the principal.” They live off the income. Capital can be hard to accumulate. 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.
Styl Properties, Inc. is here to help homeowners out of any kind of distressed situation. 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. Just the simple honest truth about your home and how we can help you sell it fast to resolve any situation.
Give us a call today at 402.909.0686 to let us know what YOU need help with!