inherited houses are mostly not kept by the heirs, and there can be plenty of reasons for that, like hefty renovation costs, high maintenance, far-off areas from your living, and more. Whatever the reason, once you’ve decided to sell your inherited property, this step-by-step guide to selling inherited property in Massachusetts will lead your way and make the process easy for you.
What is Inherited Property?
The inherited property is the land or building you receive after someone dies. Usually, these properties are passed down by your parents, grandparents, or other close relatives. So, when a property is passed down to you, it’s up to you to keep it, rent it, or sell it.
In this blog, we’ll guide you through the complete process of selling an inherited house in Massachusetts.
Steps to Take After Inheriting a Property in Massachusetts
Once you inherit a house, please follow these steps.
- Check Who Owns the House Now
It’s important that you are the sole owner of the house to be able to sell it. After going through the probate process, you’ll get ownership of the house. Probate is when a court helps transfer the house from the deceased person to the person who inherits it (you).
- Evaluation of the Property
If you are selling a house in Massachusetts, the next step after obtaining legal ownership is to determine its worth. Property pricing differs based on the area, amenities, and many other factors. Professional appraisers at I Buy Places can tell you the right market value for your house.
- Check for fix-ups
Before selling, checking if the house needs any repairs is better. Fixing up or minor renovations could help you sell it faster and for a better price. You can sell your house as it is, but houses in bad shape either take ages or may yield a different price.
- Check for a Mortgage
Check if the house has a mortgage on it. If yes, you may need to pay the mortgage amount first. In some cases, if the buyer agrees, you can also transfer the mortgage to the buyer.
- Talk to a Tax Expert
Rules for property inheritance tax differ from state to state. Massachusetts’ tax exemption threshold for the inherited state is much lower than the other states. So, we recommend talking to a tax expert for the right guidance.
How Can I Sell My Inherited Property in Massachusetts
Once you’ve followed the steps above, here’s how to sell your inherited house:
- Get the House Ready
Presenting your house in front of buyers in an art and better presentation means more chances to get it sold faster. Hiring a professional home staging team is recommended for better results.
- Work with a Real Estate Agent
A real estate agent who knows the Massachusetts market is a companion in your house-selling journey. Make sure that your agent is already working on inherited properties.
- List the House for Sale
Once the agent is onboarded, it’s time to provide all the details of your house to the dealer, along with some detailed pictures. Your agent will list the house online for more visibility to buyers.
- Review Offers
When offers start coming in, your agent will compile all the offers and share the best ones with you. Make sure to consult with your agent before accepting an offer.
- Finish the Sale
Once you’ve accepted an offer, you must sign papers to transfer ownership of the house to the buyer. You will also pay the closing cost and any other documentation fee to complete the sale.
Documents Needed for Selling an Inherited Property in Massachusetts
- To sell an inherited house, you need to have these documents ready:
- Death Certificate: A documented proof that the owner has passed away.
- Will or Trust: Document that states the new owner.
- Probate Court Papers: In case the house went through probate, you’ll need a court paper that says the house belongs to you now.
- Property Deed: This proves that you own the house.
- Tax Documents: Papers showing that all property taxes are paid.
- Mortgage Info: If there’s still a mortgage, you must show the buyer how much is left to pay.
Taxes on Selling an Inherited Property in Massachusetts
Several taxes on selling inherited property in Massachusetts can be implemented based on its value.
- Capital Gains Tax
Stepped Up Value – Fair Market Value = Taxable Capital Gain
Since most of the houses sell at their fair market value. So, chances are you won’t need to pay this capital gain tax as the tax only implies the difference between a house’s Stepped-Up value and the property’s fair market value at the time of inheritance. The difference is the taxable capital gain amount.
- Estate Tax
In Massachusetts, an estate tax is paid when someone passes away and leaves behind property worth more than $1 million. You don’t have to pay anything if the property is under $1 million. But if the inherited property’s value exceeds the limit, the whole property’s amount is taxable.
Selling a House in Massachusetts with Multiple Inheritors
Things get a bit different when there is more than one heir to an inherited property. So, when you are selling a house in Massachusetts with multiple heirs, you should take care of a few things before getting it up for sale.
All Heirs Must Agree: If there are multiple heirs to a property, then the property can only be sold with everyone’s consent.
Define Each Share: According to the will, there can be differences in ownership among the heirs. Mostly, all the heirs get equal shares if there are no specific details of the division.
Disagreement Handling: If some heirs do not want to sell the property while others are willing, they can file a petition, and the court will allocate their share.
Selling Property: Once everyone agrees to sell the property, the sale will take place just as mentioned above in the single-owner case.
I Buy Places; Sell Home with Ease
Selling an inherited property gets easy when you know what to do, but it’s a lot more fun when you can sell your property without moving an inch. And that’s what we do at I Buy Places.
We are a team of cash home buyers providing cash offers to inheritors who need their property sold as fast as possible. Our team visits your property, asks your price, and makes a cash offer.
That’s it… With us, you can skip all the steps and simply give us a call for an awesome cash offer for your property.
Conclusion
Selling an inherited house in Massachusetts does not have to be difficult. Follow the procedures in this guide and get assistance from specialists such as real estate agents, lawyers, and tax experts to make the process smoother. Whether you’re selling to avoid taxes or to cash in on your property, this guide will walk you through the process from beginning to end.
However, if you want to skip these steps and sell your house quickly for a great cash offer, I Buy Places is the perfect location for you!
FAQs
How to avoid paying capital gains tax on inherited property near Massachusetts?
The best way to avoid taxes on capital gains is to consult with a tax professional for assistance. A professional tax consultant with years of experience in many legal ways to help you avoid taxes on inherited property.
2. Can I get a home equity loan on an inherited property?
Yes, if the house is in your name and contains equity (worth), you may qualify for a home equity loan. This allows you to borrow money against the value of your house.
3. When does an inheritance become marital property?
In Massachusetts, inheritances are typically regarded as independent property. However, if you combine the inheritance with shared funds, such as depositing it in a joint account or utilizing it for something shared with your husband, it may become marital property.
4. Can I sell a house with multiple inheritors?
Yes, but when selling an inherited property in Massachusetts with multiple heirs, all heirs must agree to the sale. Ownership shares are defined by the will or equally distributed if unspecified. In case of disagreements, heirs can petition the court to divide or sell the property. Once everyone agrees, the sale process is like that of a single-owner property.