When you inherit the land, there are multiple benefits and downsides attached to it. The last will and testament of the deceased will need to be fully probated, and the title of the land transferred to you before you can sell it.
If the deceased made all the arrangements beforehand, then the process becomes smoother, but in the opposite case, it becomes a great deal more complex. Distribution of valuables and personal belongings among legal heirs and dealing of estates of the deceased is an important task. If a person dies suddenly, then the matter of property and last will of the deceased is to be solved on a priority basis in probate court.
People who inherit land have to decide numerous things before proceeding. Do they want to keep the land or sell it? In the case of more than one heir, the inherited property can become a real headache. Some of them may want to sell it, some of them may want to keep it. Such circumstances can cause substantial financial and emotional difficulty for the heirs as they try to sort out what to do.
Complications occur when heirs want to sell the vacant property. Due to the paperwork and the hustle of dealing with different legal chores, selling an inherited land is a great task to deal with. There are several steps to do when you’re selling an inherited land. Some of them are discussed below.
Transfer of Ownership
The first and the important step is to transfer the property to the heirs. The probating of an estate is the whole process of transferring assets to the heirs as per the will of their deceased. Transfer of property in the name of heirs and clearance of debt and dues of the deceased is completed at this step.
Selling the land until a deed is issued and the probate is complete is not possible. Issuance of deed can be done through the recorder where the land is located. Once the land is transferred to the new heirs, it’s their responsibility to pay the taxes on the land. If the heir fails to do so, he or she won’t be able to sell it.
Selling the Inherited Asset
Selling inherited land is the same as any other property you own. Contacting any real estate agent from your neighborhood or any other professional real estate agent is the first step towards selling your inherited property.
Start by evaluating the value of your land. You can evaluate the value of your land with the help of a professional real estate agent. These professionals know how to sell an inherited land and how to put a perfect price on it.
Contacting an appraiser is another way to evaluate the value of your land. If your land is in a good location, then you might not need to hire a real estate agent, or you can market the land by yourself by advertising it on different forums, which will attract potential buyers. But in other cases, you will need the help of professionals.
Setting up Fair Value
Once you evaluate the price of your land, then it’s time to prepare it for sale. Selling an inherited property and dealing with the laws and procedures required to do so can seem overwhelming. To prepare your land, first of all, clean it. If the land has been vacant for a long time, there will likely be a lot of bushes and trees growing around.
Pick up all these bushes and extras to clean the land. Marking the boundary line is a good way to avoid any confusion and can make the property appear more attractive. After preparing your land, now it’s time to list it for sale.
Listing your land has only one goal. To find a perfect buyer with a perfect offer. Don’t rush this process. Instead, evaluate every offer and go for the one you find the best. In the case of inherited land, you may want to sell to a developer or other professional land buyer. A professional land buyer’s experience and resources can help you sell the land faster and without any complications.
Property Tax Brackets
After selling the land, here comes the tax part. There are two scenarios once you’ve sold your inherited land. First is you make a profit, and the other one is you face loss. In the first scenario, you will have to pay the tax on the profit. You do not have to pay taxes on any loss, but that is rarely the case on inherited land. You get a tax deduction if you show a loss.
Overall, the process of selling inherited land can be overwhelming and complex, especially if the responsibility lands on your shoulder way too early. With the right amount of research and proper guidance, you can sell your land without any complications and can fulfill the last wishes of the deceased. While listing your land, do mention the key features like location, condition, and any personal emotional story for that personal touch.