There comes a morning in many lives when you inherit a Houston house. You and your siblings now face a parade 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, when you inherit a house in Houston, it may cost a lot of green paper to travel back and forth.
Take a deep breath. There is no tazer 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 of you 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 solutions company 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 help you with the jigsaw of questions you have and will help you make selling decisions.
Clean the house. Be a tiger 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. 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 the process; this is not a time to bellow about past slights. It is a time to cement relationships with siblings. It can also be a time when money can tear a family apart. Arguments with siblings can be as intense as a dog guarding his bone. Should we rent or sell? What market price for 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.
Since our inception, we have been helping homeowners along with improving communities in every city in which we work.
Through our extensive knowledge of the business, network of resources, and years of expertise, we can assist homeowners with a wide variety of real estate problems. We pride ourselves on our reputation for working one-on-one with each customer to handle their situations.
With the ability to directly purchase homes and make cash offers, we can create an extremely fast, and hassle-free transaction.