Selling an Inherited House in Georgia

Navigating the Challenges and Opportunities of Selling an Inherited Property

Getting a property through inheritance can be hard, both emotionally and financially. You might find yourself wondering: Does the house need costly repairs and upgrades? What will the tax costs be? Is there a will, or will you have to go through probate? However, an inherited property can also be a fantastic opportunity for real estate investors and buyers seeking a lower-priced property they can readily customize. So, what do homeowners need to do to sell an inherited house? Are there specific steps involved in this type of sale? This article will outline the process of selling an inherited property to help you aim for a profit.

How to Sell My Inherited Property in Georgia

You’ve just received a property from someone who passed away, and now you’re not sure what to do next. In many states, the property you inherited has to go through something called probate. This is a legal process where a court decides who truly owns the property. During probate, the court officially gives the estate’s assets to the right heirs or beneficiaries. How long this process takes can be quite different based on whether there is a will and the laws in your state. Once everything is settled legally, selling an inherited property in Georgia is just like selling any other home. I’ll explain how to sell an inherited property later in the article, but remember that the legal steps need to be finished first.

Determine the Executor

When someone passes away, their assets usually go through probate unless they set up a living trust to skip this step. Probate is a court process that ensures the estate is divided according to the will or state laws. During this time, the court chooses an executor—either someone named in the will or a close family member if there isn’t a will. This executor has several important jobs, like selling assets, paying off debts, and distributing what’s left to the rightful heirs.

To promote fairness and possibly lessen family disputes, you might want to select a corporate executor instead of a family member. A corporate executor specializes in handling estates and can help reduce conflicts while following legal guidelines.

If the person who died didn’t leave a will, the estate will be shared based on state intestacy laws, which might not reflect what the deceased wanted or what the heirs expect. For instance, in many states, if someone dies without a spouse or kids, their estate could go to their parents or siblings. This can create issues when several people inherit one property and have different opinions about what to do with it.

Working with Lawyers and Real Estate Agents

Probate can be a very tricky process, so it’s important to have a skilled lawyer by your side to help you through the challenges of selling a home you have inherited. Be sure to vet lawyers carefully, just as you would any other professional, as an inexperienced one can significantly delay the process.

After receiving the go-ahead from the probate court to sell the property, the next wise move is to work with a real estate agent. Not just any agent but one who has experience with inherited homes. A knowledgeable agent who understands the ins and outs of probate sales can provide you with valuable insights into the rules and regulations involved. They will assist you in finding the right buyer, ensuring you receive the best price for the inherited property. Moreover, they can advise you on what repairs and upgrades are worth your time and money, versus what might just be a waste. Taking their guidance can make a big difference in whether you sell a property quickly and profitably or end up with a house that lingers on the market and sells for less than its value.

Resolve Any Debts

When you think about “inheritance,” do you picture a long-lost relative leaving you a fancy mansion in the woods? Or do you realize that inheriting a property can come with some tricky issues? You might have to face problems like liens on the title, unpaid taxes going back years, or a mortgage that could eat up any profit when you sell. Unfortunately, after losing a loved one, you often also have to handle their debts, whether that’s taxes, loans, or maxed-out credit cards. Before you get any money from the estate, any assets you inherit need to be used to pay off those debts. Although a house can look like a valuable asset, it can also turn into a costly burden. A skilled estate advisor can guide you through your choices when managing an estate.

Clean & Restore the Home

After you’ve taken ownership and the property is now yours, the next choice is to decide if you want to live in it, rent it out, or sell it. Often, when someone we care about passes away, they may leave behind a home that isn’t in great condition. Whether the house hasn’t been maintained for years and needs extensive cleaning and repairs, or it simply requires a full renovation to be market-ready, this aspect of an inheritance is something many people overlook.

Do All Heirs Have to Agree to Sell an Inherited House?

Not all heirs need to agree to sell a house or property if a will or the probate court has already decided who owns it. However, if ownership is not clearly established, such as when there is no will, or if a court-appointed administrator is involved and the will doesn’t specify sale, then all heirs typically must agree to the sale. This rule also applies to properties that the court sells at auction to pay off the estate’s debts. If someone wins a house at an auction and one or more heirs disagree with the sale, the purchase will be put on hold until the disagreement is sorted out and everyone comes to an agreement.

How to Settle a Disagreement On An Inherited Property

When family members don’t see eye to eye about an estate, there are a few ways to resolve the situation. The first step is to appoint an executor. This person is responsible for making sure that your loved one’s wishes, as stated in their will, are followed correctly. Having someone to handle this can reduce disagreements about what should happen with the estate’s belongings. If there is no executor or if the will is being disputed, it might be time to hire a mediator. A mediator is a neutral person who helps settle arguments, and using one can be much cheaper than taking the matter to court for probate. It’s not unusual for heirs to argue about what to do with estate property, especially when valuable items or those with sentimental value are involved. These disagreements can be emotionally charged and complicated.

Heirs often have conflicting views for several reasons: they may feel differently about a property, have varied financial circumstances, or disagree on its current worth and future potential. One heir might want to keep the family home because it holds memories, while another might want to sell it to share the money. Heirs are often in different financial situations. Some may need cash quickly, while others might want to invest for the long term. This disparity can lead to conflicting views on how the estate’s assets should be managed. When heirs cannot agree, the executor plays a crucial role. Executors are responsible for trying to resolve conflicts while following the instructions of the will and legal rules. If the will doesn’t say what to do with a property, or if there is no will, executors must make choices that consider everyone’s interests fairly.

Usually, executors can sell property without needing all heirs to agree. However, if there is any disagreement about selling, the executor may have to get permission from the probate court. The court will look into the situation and consider the executor’s reasons for selling, the benefits to the estate, and the concerns raised by the heirs.

Mediation and Negotiation

Before going to court, parties are usually encouraged to try mediation. This process involves a neutral third party who assists heirs in discussing their differences and finding a path forward. Mediation is often less confrontational and more affordable than court cases. Plus, it can help keep family ties strong and allow for flexible solutions that fit the family’s needs.

Executors and heirs should try to handle disputes with open communication and a willingness to meet in the middle. It’s important for executors to share the reasons for their decisions clearly and for heirs to express their worries and needs. Seeking legal advice is also smart to make sure that all actions are legal and in line with the wishes of the deceased, if there is a will. The aim for heirs and executors is to reach resolutions that honor the legacy of the deceased while also meeting the practical needs of those still living.

Tips For Managing Affairs

Here are five helpful tips for executors and beneficiaries to manage estate matters more easily and fairly. These tips can help reduce lengthy disagreements and ensure the estate is administered according to the deceased’s wishes and applicable law.

1. Keep Detailed Records: It’s important to keep thorough notes on decisions, talks, and financial dealings. These records are valuable if decisions are questioned later or if the probate court needs assurance that the executor is performing their duties correctly.
   
2. Communicate Openly: By communicating regularly and clearly, you can reduce misunderstandings and cultivate trust among everyone involved. Executors should keep beneficiaries informed throughout the probate process and regarding key decisions.
   
3. Think About Mediation: If disagreements come up, mediation can be a good way to solve problems without going to court. Mediators can help find creative solutions that work for everyone.
   
4. Get Professional Value Estimates: Having a professional appraisal of property can help provide a neutral starting point for discussions about selling or sharing assets. This is especially useful when emotions may affect how the value of a property is viewed.
   
5. Seek Help from Legal and Financial Experts: Executors should feel comfortable reaching out to legal and financial professionals, especially if the estate is large or complicated, or if they expect disagreements. Expert advice can make it easier to handle legal duties and financial planning.

Taxes on Selling an Inherited Property in Georgia

When you sell an inherited property in Georgia, there are certain taxes you need to be aware of:

• Property Tax: This is a yearly charge you pay to your local government, calculated based on your property’s value. Just like any other real estate, inherited properties also require property tax. In Georgia, the property tax rate is 0.90%.
  
• Estate Tax: Georgia does not impose a state estate tax; federal estate tax, however, applies only to estates exceeding $13.8 million in 2024. This tax is on the whole estate, not the person who inherits it.
  
• Inheritance Tax: In Georgia, there is no inheritance tax. If an inheritance tax existed, the rate would vary based on the beneficiary’s relationship to the deceased and the inheritance amount.
  
• Capital Gains Tax: When it comes to capital gains tax, the IRS uses a stepped-up basis. This just means your “starting point” for the property’s value is reset to what it was worth on the day the person passed away. You only pay capital gains tax if you sell it for more than that new value, and only when you actually sell it for a profit, not just when you inherit it. Most states have their own capital gains rules too, but in Georgia, if you sell the inherited property fairly quickly, you’ll likely avoid much (or any) of this tax, as there hasn’t been much time for its value to go up since you inherited it.

Documents Required to Sell an Inherited Property

To list the property for sale and prove you have the legal right to do so, you’ll need a copy of the official court papers that name you as the estate’s executor or administrator. These documents will establish your ability to manage the inherited property. Once you find a buyer and are ready to close, you’ll need the deed, title insurance, or other relevant legal records to establish the legal ownership of the inherited property. 

It’s wise to research what additional documents may be needed to sell an inherited property, as some jurisdictions might require surveys, inspections, or other relevant paperwork concerning the property’s condition or history.

3 Ways to Sell Your Inherited House

1. For Sale By Owner (FSBO)
   Selling your inherited property For Sale By Owner (FSBO) allows you to bypass a real estate agent, giving you full control over the sales process. You handle the marketing, negotiations, and paperwork, which can save you tens of thousands of dollars. However, if you’re not familiar with the process, it can be very challenging and time consuming.
   
   To maximize your chances of selling successfully, you’ll likely need more than just a Zillow or social media listing. You need as much exposure as possible. One effective way to do this is by using a Flat Fee MLS service like Beycome, which allows you to list your home on the Multiple Listing Service (MLS). This is the same platform realtors use. This increases visibility and automatically syndicates your listing to major real estate websites like Zillow, Redfin, Realtor.com, and Homes.com, helping you put your listing in front of the eyes of more potential buyers.
   
   Taking the FSBO route requires effort, but with the right tools and strategies, you can successfully sell your home while saving on commissions.
   
2. Use a Discount Broker
   While real estate agents and brokers perform similar roles, there are important distinctions between them. Real estate agents help clients navigate the buying and selling process, while brokers receive additional training and licensing, allowing them to supervise agents and operate independently. Both can work under a brokerage, but only brokers have the authority to manage or own one.
   
   A discount brokerage connects sellers with agents who agree to lower commission rates, typically in exchange for handling a larger number of transactions. The amount you save and how fees are structured will depend on the brokerage you choose, so it’s essential to explore your options.
   
3. Sell to an iBuyer or a Cash Company
   Homeowners looking to sell quickly and avoid the hassle of showings, repairs, and a lengthy closing process can speed things up by working with an iBuyer. These online, tech-driven companies, where the “i” stands for instant, purchase homes directly from sellers without involving third parties, like real estate agents or lenders.
   
   An iBuyer can provide an all-cash offer on your home within 24 hours, sometimes even sooner, and typically close within two to three weeks. Many also offer flexible closing dates to accommodate your schedule. However, while iBuying offers speed and convenience, it’s important to consider the potential financial trade-offs before making a decision.

Is There An Easier Way to Sell?

Yes, there is! We Are Home Buyers is a direct house buying company, known for purchasing inherited homes for cash, offering a less stressful process with fewer fees. Contact us today and get a competitive cash offer for an inherited house, condo, or property. We buy homes in any condition, and we can also help with the often convoluted process of selling a house in probate! Let us make your home selling experience as straightforward and stress-free as possible so you can move on with your life.

Even if the house suffered major damage in the last storm or was neglected for years and needs extensive upgrades to make it “market ready”, once you accept our fair cash offer, our team of experts will handle all of those expensive repairs so you don’t have to! We make selling an inherited house easy.