Once you have cleared out your parents’ home, preparing it for sale involves several key steps. The process is like selling any other home, but requires additional consideration given the circumstances.
Complete Basic Home Preparations
Start by giving the house a thorough cleaning inside and out. Decide whether to invest in repairs or updates. If the kitchen and bathrooms have not been updated since the 1980s, consider making some improvements if you aim to maximize the sale price. However, if you are overwhelmed with grief or have limited resources, basic cleaning and perhaps a fresh coat of paint might suffice.
Consider Selling As-Is
If you prefer not to invest in repairs, selling the house as-is is an option. This might mean accepting a lower sale price but can also help avoid hefty capital gains taxes. Disclosure rules for inherited properties are generally more lenient since you were not the primary resident. However, be aware of your potential liability for undisclosed major issues, depending on how you inherited the property.
Conduct a Pre-Listing Inspection
A pre-listing inspection can identify issues with the property but also requires disclosure of any problems found. If you live far from the property, your real estate agent will manage the sale and handle inspections.
Set the List Price and Sell the House
Setting the right price is crucial. Avoid letting sentimentality influence your decision; instead, rely on a Comparative Market Analysis (CMA) to determine the fair market value based on recent sales of similar homes. Consider the tax implications of the sale and remember that selling at or slightly below market value might be beneficial in the long run, especially if it results in a quicker sale.
Keep an Eye on Time and Costs
Owning the home incurs ongoing costs, including utility bills and maintenance. The sooner you sell, the less you will spend on these expenses. Keep the house in good condition to attract buyers and avoid additional costs.
In Conclusion
While selling your parents’ home is an emotionally challenging process, careful preparation and realistic decision-making can simplify it. By addressing repairs, setting an appropriate price, and understanding your legal and tax obligations, you can manage the sale efficiently. Do not hesitate to enlist the help of experienced professionals to guide you through this process, ensuring that everything is handled with care and attention. If you are ready to start the process, contact Scott and the Smolen Team. They can provide expert guidance and support to help you navigate this complex and emotional journey.
