Inherited real estate can be a huge burden. There are large responsibilities that fall upon the shoulders of the heirs. This is especially true when the property has outstanding loans, liens, and judgments, and is in a state of disrepair. If the deceased did not leave a will, this will complicate things further. If you have inherited property, here is some important information you need to know about inheriting real estate in Raleigh.
Financial Responsibility
One thing you should know about inheriting real estate in North Carolina is that the mortgage stays with the property and must be satisfied. The same is true for any outstanding debts attached to the property, including liens, taxes, HOA fees, judgments, etc. Often these associations have strict guidelines that must be adhered to regarding the maintenance and appearance of the property.
These liens begin to accrue interest if they are not satisfied in a timely manner, which erodes the equity in the property.
Repairs
The frequency and expense of repairs begin to increase at a quicker pace as homes age. This in turn increases the risks and expenses involved with inheriting real estate in Raleigh that is not new or in pristine condition.
Many HOAs have regulations as to the maintenance and appearance of a property. If the lawn becomes overgrown, or if mail piles up on the porch, fines can be issued and will have to be paid before selling. The City of Raleigh is known for issuing fines for having grass taller than 3 inches.
If you intend to repair the property and list it for sale. It is highly recommended that you contact at least three professionals for each type of repair. Keeping in mind the costs of holding a property continue despite the status of the repairs, be certain to get estimates of both the time frame and total overall cost involved.
If you prefer a hassle-free, as-is, sale. You can contact Wake County Home Buyer directly for an offer.
Clearing Personal Property
Inheriting real estate in Raleigh can be a very emotional time. In our experience, many inherited properties contain decades’ worth of personal items that families want to inspect before discarding anything. Many of these items trigger emotions and memories, not always positive, making this a very draining experience. A house full of items is also difficult to show.
Wake County Home Buyers allow their sellers to discard whatever personal property they don’t want in the home. Our sellers can cherry-pick and go!
Taxation
Tax implications are something everyone should have general knowledge about inheriting real estate in Raleigh. Under the Unified Gift and Estate Tax system, the estate tax is based on the value of the property transferred through inheritance, which is calculated based on specific guidelines and includes possible deductions. While often no federal estate tax is owed as the beneficiary, this is not always the case. Every American currently is allowed to inherit up to a little over 11 million. You will also want to be certain to investigate gift tax as well. Additionally, there are several states which do have estate taxes (fortunately NC is not one of them) so familiarizing yourself with these laws may be helpful in the future.
Is There a Way To Avoid the Hassle?
For many, holding onto an inheritance of real property is much too time-consuming or simply not financially possible. There is a simple and quick solution that will easily eliminate any concerns about inheriting real estate in Raleigh.
As of this writing, Wake County Home Buyers is under contract to buy an inherited house. Since there was no estate file created, the heirs needed to find an attorney to get this part of the process complete. We were able to find, and finance, the attorney to handle the estate portion of the transaction. We will be buying this property, as-is, with no repairs, and the seller is free to leave behind whatever they don’t want. So the answer is yes! There is a way to avoid the hassle of selling an inherited property.