Inheritance. It is the legacy that people behind to their loved ones and other people they want to help after they are gone.
In the United States, the median inheritance is $69,000.
One form of inheritance that you can have is inheriting a house with a sibling. If you are in this situation, you may be wondering what you have to do from here.
Are you worried about property disputes with your siblings? Do you want to know what to do with the property?
Here are some tips on how to go about selling inherited property.
Planning a Productive Family Meeting in California About Inherited Property
The first thing you should do is have a family meeting about the property. This should involve every family member that has shares in said property.
Once you have everyone in the same place, you need to do two things. The first thing you should do is get an idea of what everyone wants to do with the property. Options here include keeping the property within the family, renting it out to travelers or tenants, plus selling the house outright.
The other thing you have to do is decide who is going to handle the arrangements. Is one person going to oversee a sale? Is one person going to cover the costs to keep the house running until it is sold?
These are things that you should decide as soon as possible. If there are family members that disagree about what to do with the house, that could lead to bigger problems.
As to how to manage the property, this establishes how communication is going to work if you do decide to sell the house.
Buying Out Siblings’ Shares in Inherited California Homes
As mentioned above, it is important to come to an agreement on what to do about the home that you inherited. You may run into an issue where one sibling wants to keep the home and the other sibling wants to sell it.
If you run into this situation and it gets to the point where you guys reach an impasse, you need an alternative solution. That solution could be one sibling buying out the other that wants to sell the property.
This allows the sibling that wants to sell to get out of the property and it allows the one that wants to keep the property to own it outright.
Someone could want to keep the property for several reasons. They may want to move into it themselves, they could want to rent it out to other people, or they may think it could be worth more money in the near future.
Whatever the motivation is for one sibling to keep the property, buying out the other sibling is the smoothest way to do this if there is a disagreement.
Challenges of Inherited Property Maintenance in California
Another thing you should keep in mind is that you are going to have to maintain the home until you sell it. This is especially the case if you have to clear out the home of personal items or you do not know what you want to do with the property yet.
Or, you could get a home inspection before finalizing a sale and the inspector could tell you that there are more issues with the home than you expected.
Regardless of the reason, you are going to want to set aside a budget for maintenance costs. This includes fixing up any minor repairs, keeping utilities running, and more.
On average, homeowners tend to need about 1% of the house’s worth per year on maintenance.
So, let’s say that you plan on selling the home in about six months. In this situation, the home could be worth about $500,000. Then, you would have to set aside about $2,500 for maintenance costs if you are going to go with .5% of the house’s worth.
How does this work with siblings? The answer is it depends on what you did above.
If you already bought out another sibling, you should be on your own with this. However, if all of you want to sell the property together, you should discuss how you want to go about handling maintenance costs.
Either one sibling can get estimates for this and keep up with monthly bills or you can take turns. No matter what you do, just make sure you have a system where everybody is on the same page.
How to Sell an Inherited House Fast in California
Unquestionably, inheriting property jointly with your siblings can present numerous challenges. In many cases, selling your jointly inherited property swiftly can be the most effective solution. Why? Let’s delve deeper into this approach.
First, the inherited house may require substantial repairs and maintenance. These can range from simple cosmetic upgrades to extensive renovations like fixing structural issues or updating outdated plumbing. These projects can be costly, time-consuming, and potentially more complex than you initially anticipated. Selling the house ‘as-is’ means you don’t have to worry about these complications or expenses, providing immediate relief from the burden of property upkeep.
Second, geographical constraints can significantly complicate the management of an inherited property. If you and your siblings are spread across different locations or states, coordinating property management, repairs, or selling processes can be a daunting task. Selling for cash can solve this problem, enabling you to complete the sales process swiftly without being physically present.
Managing someone else’s property can lead to significant stress. Dealing with legalities, potential disputes, and the emotional strain of sorting through a loved one’s belongings can be overwhelming. In this scenario, a quick sale can alleviate these pressures and provide you with the freedom to move forward without the extra responsibilities.
Last, with the potential for unforeseen obstacles and the market’s unpredictable nature, selling a house can become a lengthy and tedious process. However, by choosing to sell to a cash buyer, you can bypass many of these delays. This arrangement enables a quick sale, often within a week, and spares you the stress of a prolonged selling period.
For these reasons, selling your inherited property for an instant cash offer stands out as an advantageous option. It provides a hassle-free, rapid solution to the complexities of managing an inherited property, allowing you to focus on more pressing matters. Consider this option to navigate your situation with the utmost ease and efficiency.
Resolving Inherited Property Disputes in California
Inheriting property can be a very emotional experience. You are saying goodbye to a loved one while receiving something that may benefit your life. However, if siblings do not have the same vision, it can lead to property disputes.
You can either buy a sibling out, have a family meeting to discuss what to do with the house, or sell it as fast as you can.
Do you want to do the latter? Get a cash offer on your house today.