Go Back To Article List
Why Selling Inherited Real Estate Property?
Tuesday, June 2, 2015
Learning that you have inherited real estate can be both pleasant and stressful. For most people, there is a financial benefit associated with inheriting real estate, but there are also financial issues and perhaps emotional considerations that can complicate things. When a loved one leaves you property, you essentially can move into the property yourself, lease it out to a tenant or sell it. With closer inspection of the options, you may decide that selling is the preferred option.When You Keep the Property
If you decide to keep the property, you may struggle with the emotional impact associated with retaining a property that your recently deceased loved one owned. Many will struggle with the memories of the loved one surrounding them on a daily basis. There are benefits associated with keeping the home. For example, if you live in the home yourself, you may minimize the amount of capital gains you will have to pay when you sell it. If you rent the property, you will turn it into a true financial investment that may continue to pay off for you. However, renting a home also comes with expenses and the hassle associated with managing the investment. While there are benefits associated with keeping the property, many will choose to sell it to avoid the emotional stress that keeping it may cause.Why Sell the Property Now
If you choose to sell real estate
that you have inherited, keep in mind that your basis on capital gains will be based on the value at the time you take ownership of it. Therefore, selling it now can also minimize the capital gains that you pay. In addition, when you sell the property right away, you will be able to turn the asset into liquid cash. This may be needed to further settle the estate in an equitable fashion, or it may be used for other beneficial purposes in your life. For example, you could pay off debts or invest it. When you sell the property, you also are not tied to a specific location or floor plan. Even if you need to move into a new home, the home that you have inherited may not be ideal. You could apply the money from the sale of the home toward the purchase of a new property that is more ideal for you.
The option to sell real estate
that you have inherited is just one of several options available to you. However, there are both financial and emotional benefits associated with selling it. Because of this, selling it may be the best option for you.