Ultimate Guide To Selling An Inherited House In Birmingham, AL (AKA Probate Property)

Are you trying to decide whether to sell or keep a house you’ve inherited here in Birmingham? Rent? Move In? Sell? Chances are you’ve got a lot going on at the moment and it can be overwhelming dealing with an entire house full of belongings especially one that wasn’t yours. In our latest post, we help you learn more about your options.

What Is Probate?

Probate is the formal court-supervised legal process of carrying out a deceased person’s last wishes by validating their will (if any) and resolving outstanding debts and distributing assets. This is usually done through a will (“testate”) or the person doesn’t have a will, it is called “intestate”. You may hear these legal terms brought up during the process and it’s a good idea to learn them ahead of time.

As always it’s best to seek the counsel of a competent local attorney who understands the process. We recommend Waters Sullivan.

Things To Consider Before Selling an Inherited House In Alabama

Whether or not you knew about the inheritance, you might be faced with some unexpected challenges once the property is in your name. Owning a house can be expensive. The bills, the taxes, the maintenance, and the unexpected repairs can come as a shock. As any investor will tell you, the longer you own it, the more it is costing you. Before you make a decision about whether to sell or keep the inherited property, ask yourself a few questions. Take the time to learn about the market and the property in question, to better help with your decision. Below, we will offer some tips to help you determine if you should keep or sell your inherited property in Birmingham. Will will also offer some insight into the best ways to sell.

Costs of Holding Onto An Inherited House

So, you have inherited a house and while this may sound exciting, the reality can be daunting. The truth is that you have also inherited a second set of expenses along with the house and if you’re not financially, physically or mentally able to keep up with those expenses it become overwhelming. Often, these homes are in various states of distress or require a great deal of upfront cash to rehab and bring up to current market standards.

Perhaps you already have your dream home and have no interest in residing in the property but feel a sentimental attachment. While it is understandable, the value of sentimentality won’t pay for the reality of carrying the cost of an inherited house. This harsh reality often leads to the ultimate decision to sell the property. Whatever you decide to do, don’t delay in caring for the property. An excellent place to begin managing your inheritance is locating the contact and payment details on existing expenses. 

We’ve gathered a list of typical monthly payments to help you with a starting point. Read on to learn about all of the costs of holding onto an inherited house in Birmingham.

Taxes

Property taxes will still be due on the property when you hold onto an inherited house in Birmingham. These tax payments may or may not be a part of your monthly mortgage payment. Even if the mortgage is free and clear, annual property taxes will always be due. They will likely rise significantly because tax collectors will reassess the rate at the current market value.

Insurance

Depending on the amount remaining on any mortgage, you may be responsible for mortgage insurance and property insurance while holding onto an inherited house in Birmingham. 

Assumption of Mortgage

Often, you can assume the mortgage if you hold onto an inherited house in Birmingham. The wording of the original contract may be the determining factor in your ability to assume the mortgage. If they had a reverse mortgage, you would need to pay the loan off to keep the property.

Utilities

While you are not necessarily obligated to pay the utility bills under the name of the deceased, if you’ll be residing in an inherited house in Birmingham, you will want to keep the payments timely. Otherwise, they would become a lien on the property and taken out of the profits when sold.

Maintenance

Should you be considering maintaining ownership of the property, it would be advisable to have a professional inspection done to understand what you are getting into fully. Depending on the length of time that the house has been vacant and the state of repair the property is in, holding onto an inherited house in Birmingham could become extremely expensive to maintain. Monthly expenses for repairs on older properties can easily equal or exceed mortgage payments.

Yard

It is often effortless to tell which homes are vacant because the yard has become tangled and unmanaged, adding to the distressed appearance. Unless you have spare time, you will need to ensure that the yard is appropriately maintained when holding onto an inherited house in Birmingham.

Unless you have a plan for the property, holding onto an inherited house in Birmingham is costing you money. Home Buyers of Alabama will pay you a great price and close when you are ready. If you don’t feel that you can handle the emotions of going through the possessions of your loved one to clean out the property, you can leave everything in place or take what you like, Home Buyers of Alabama will handle the rest for you. Call Home Buyers of Alabama at (205) 379-8185 or send us a message today!

How To Decide Whether To Sell Or Keep Your Inherited Property In Birmingham

Whether or not you knew about the inheritance, you might be faced with some unexpected challenges once the property is in your name. Owning a house can be expensive. The bills, the taxes, the maintenance, and the unexpected repairs can come as a shock. As any investor will tell you, the longer you own it, the more it is costing you. Before you make a decision about whether to sell or keep the inherited property, ask yourself a few questions. Take the time to learn about the market and the property in question, to better help with your decision. Below, we will offer some tips to help you determine if you should keep or sell your inherited property in Birmingham. Will will also offer some insight into the best ways to sell.

Ask Yourself These Questions

Do you have a use for the property?

Holding onto it for sentimental reasons is fine if that’s what you want to do, but don’t feel as if you are obligated to keep the house. Only keep the property if you have a sincere use for it. There is no sense in holding onto a property that will just end up sitting there.

Are there other owners?

If there are other owners of the property, you will all need to sit down and come to a consensus. Work together to decide if the home should be kept or sold. If there is an odd man out, consider buying them out as not to cause further disagreement. Remember, it is just a house, and the person who passed it down to you would never want to see their gift become an argument.

If you decide you want to sell, how much can you spend upfront?

If the home has not yet been cleared out, that should happen first and foremost. A traditional property listing will come with some upfront costs. You’ll likely need to make some repairs to the house and have it professionally cleaned. It’s tricky making repairs to a house you’ve never owned. You may not know what you’re getting into. You don’t want to find yourself down a rabbit hole, spending thousands and thousands on a house you want to sell anyway. Depending on how you decide to sell, you could face not only repair costs but costs for marketing too.

Ways To Sell

List It

Listing your inherited property in Birmingham will require you to get the property ready for the MLS. Take a look at what other homes are selling for, and how your property stacks up. Be realistic with your prices, and don’t spend too much over-improving. When you list an inherited home, you may feel frustrated to suddenly have to spend money selling a house that isn’t yours.

Sell On Your Own

Selling the house using an FSBO listing will save you on the commission, but you will still need to pay for cleaning repairs, marketing, and other selling costs. In most cases, selling on your own to a regular buyer will take longer and ultimately put less in your pocket.

Sell To An Investor

When you sell your inherited property to Home Buyers of Alabama, you will not need to spend a dime out of pocket. Nor will you have to pay expensive commissions, agent fees, or administrative costs. By selling the property directly, you will be able to quickly receive your profits and move on from the house without spending months making repairs and waiting for the property to sell.

Get More Info On Options To Sell Your Home...

Selling a property in today's market can be confusing. Connect with us or submit your info below and we'll help guide you through your options.

What Do You Have To Lose? Get Started Now...

We buy houses in ANY CONDITION in AL. There are no commissions or fees and no obligation whatsoever. Start below by giving us a bit of information about your property or call (205) 379-8185...
  • This field is for validation purposes and should be left unchanged.