How exciting! You’ve inherited a house in Cottage Grove!
But wait, not so fast. INHERITED… What does that mean to me?
Without giving it much thought, many consider inheriting a house a huge uptick for them in the pocket book. However, the reality is that you may be inheriting something that is a money pit that you will need to be responsible for, whether you can afford it or not. So while the best intentions may have motivated the inheritance of a property in Cottage Grove, it often is not as one first thinks. Often, properties left in wills are older and not in the condition that we remember or hope for. Over the years many things happen to structural features such as foundations and roofs. There is the wear and tear on appliances, wood floors and systems in the home, like the HVAC. It may have an outdated electric service panel that could danger ones life.
In addition to the added stress of handling the all problems your benefactor which may be a loving family member or someone you felt like you would care of their stuff may have left behind for you to clean up. Going through their belongings and cleaning out the property, working with the city of Cottage Grove if it has been sitting empty for a while. You may be dealing with emotional strains as well during a time in life that you don’t need all these issues. In many cases, there are multiple heirs, and emotions may rule their actions at this time, which only adds to the stress when you’re dealing with matters of such import.
Read on as we explore five things you should know about inheriting a property in Cottage Grove.
Regrettably, many people inherit a great deal of debt along with inheriting a property in Cottage Grove from unpaid taxes to liens and multiple mortgages on the property. In addition, primary lien holders, such as equity lines of credit and federal tax liens, will receive payment first if selling the property. Therefore, assessing where you stand with any debtors, such as contracted workers holding mechanics liens against the property for improvements, judgment liens, and the mortgage, is the first step in dealing with your inheritance.
While inheriting a property in Cottage Grove doesn’t necessarily trigger more tax liability, you should know that your decisions about what you do with the property very well may. Should you make improvements, you can write these expenses off. There are also property taxes to consider; if they aren’t a part of an existing mortgage payment, be sure to familiarize yourself with any deadlines. Inherited property is subject to a step-up-basis adjustment in the value of the property upon which your capital gains taxes on any growth moving forward are based.
As houses age, maintenance costs are typically higher for older homes, as they are more susceptible to failure. Allowing routine maintenance to go unperformed can quickly escalate into significant issues. In addition, some homes have features that have become obsolete and require specialized knowledge for proper care. Hence, it’s better to call in an expert for unfamiliar equipment, which is vital to know about inheriting a property in Cottage Grove.
Calls to repair specialists for more significant issues also increase as properties age, and this is another thing you should know about inheriting a property in Cottage Grove. Before deciding to take the house on as your own, you should have a professional inspection and estimates from at least three professionals, allowing you to see just what you’re up against if you hold onto the property. Often, when opening up a section of the house for one repair, other issues come to light, much like a domino effect, so keep extra funds on hand to cover unexpected expenses during the repair process. Remember, too, to request an estimate of the time you’ll be holding onto the property until it’s ready to be lived in or sold.
A listing on the MLS isn’t an inexpensive venture between prepping, repairs, professional photographers, marketing, and showings, not to mention the inspections, real estate commissions, and closing costs. Real estate agents can’t provide a closing date, however, so another thing you should know about inheriting a property in Cottage Grove, you may end up waiting months for the phone to ring.
Or, you could avoid all of the expenses and contact a professional investor like the experts at Minnesota Cash Home Buyers, who will make you a cash offer for your house as-is. The professionals at Minnesota Cash Home Buyers will walk heirs through the process step by step, making this time a little easier on you. In addition, professional investors like those at Minnesota Cash Home Buyers offer guaranteed closing dates. At Minnesota Cash Home Buyers, we lay it all out on the table and compare what you’d profit from listing vs. selling directly, so you can make the best decision with your inheritance for your situation. We stop everything and take the time to listen at Minnesota Cash Home Buyers, answering any questions; our pros can help you overcome any hurdles you may feel stand in the way. Working with an expert like the professional investors at Minnesota Cash Home Buyers can help you learn more about your options if you decide it’s best to sell the property. It’s comforting to know experienced professionals will work with you as a guide like the professional investors at Minnesota Cash Home Buyers will. Contact Minnesota Cash Home Buyers at (612) 444-5088.