Selling an Inherited Property in Greeley, CO

Selling an inherited property in Greeley, CO can be emotional and challenging. Losing a loved one is even harder. Finding out you’ve inherited their house can bring mixed feelings. You might feel sad while also wondering, “What do I do with this house?” An inherited house can be a headache. Old pipes might need fixing. The roof might leak. And there’s paperwork and taxes to deal with. But don’t worry! That inherited house could also be your golden ticket. You might make good money selling it, especially to people who love fixing up old homes. So how do you sell an inherited house? Are there special steps? Let’s break it down in simple terms so you can hopefully put some cash in your pocket.

What Makes Selling an Inherited House Different?

When someone leaves you their house, it’s not as simple as getting the keys and putting up a “For Sale” sign. There are some special steps you need to take: First, you need to figure out if there’s a will. If there is, great! If not, you’ll have to deal with something called “probate.” Think of probate as the court’s way of making sure everything is fair when someone passes away without clear instructions. Then comes the not-so-fun part – taxes. The government wants their share when property changes hands. But don’t panic! There are ways to pay less in taxes if you know the rules.

How To Sell An Inherited Property in Greeley

So you’ve inherited a property and you’re not sure what happens next. In most states, the inherited property must go through a probate process so the courts can determine who is the legal owner. Probate is a legal process in which the Court legally transfers ownership of the estate’s assets to one or more beneficiaries and/or Heirs. Depending on the state of the will (if there was one), this process can be very fast or very slow.

Determine the Executor

For inherited properties with a will, establishing the executor of the estate should be straightforward. One of the most important aspects of a will is establishing an executor that is able to carry out the deceased’s wishes through the process of probate.  Any assets listed in a will can’t be sold until the will is validated by the Court but, once approved, the executor of the will is allowed to act on the wishes of the deceased. But if the will is contested or there is no will, the process might take longer as the Court gets involved. 

The probate court will appoint someone not associated with the family as an administrator to the estate. These administrators play a similar role as an executor; they are responsible for carrying out the wishes of the deceased as stated in the will, as well as paying off any of the estate’s debts and distributing any assets. They may also determine if any real estate assets will need to be sold to pay off the estate’s debts, including back taxes, mortgages, etc.

Working with Lawyers and Real Estate Agents

Probate is not a simple process which is why you’ll want an experienced lawyer to help you navigate the potential pitfalls of selling an inherited home. But once you have the probate court’s okay to move forward with the sale of the property, working with a real estate agent that has dealt with inherited homes before will be your next smart step. An experienced agent with probate experience will understand the nuances and regulations for this type of sale. They can help you find the right buyer to help you get top dollar for the inherited property. They also will be a helpful guide to let you know what is worth spending time and money to fix up and upgrade, and what is a waste of your time. Listening to their advice may be the difference between selling a property quickly and for a profit, or being stuck with a house that sits on the market for too long and sells for below market value.

Resolve Any Debts

When you hear the word “inheritance” do you think of a mysterious great-aunt leaving you a million-dollar mansion in the woods, or do you understand the reality of having to deal with a property that might have liens against the title, years of back taxes, as well as a mortgage that leaves you with the ability to make much of a profit after a sale? Sadly, dealing with a loved one’s passing often means dealing with their debt, whether that’s in the form of taxes, a mortgage, or maxed out credit cards. Any assets you inherit must go to paying off that debt first before you can see one dime of the estate. While a house may seem like a huge asset, it also can be a huge money pit. An experienced estate advisor can help you research your options when it comes to dealing with an estate.

Clean & Restore the Home

Once ownership has been decided and the property is considered yours, your next step will be to decide whether you want to live in it, rent it out, or sell it. Many times, when a loved one passes they leave behind a house that is not in the best of shape. Whether the property hasn’t been kept up in the past decade and needs major cleaning and repair, or there were never any upgrades done and the house will need to be completely renovated to make it “market ready”, this is the part of an inheritance that is often forgotten about.

Do all heirs have to agree to sell the property?

No, the Heirs don’t have to agree to sell an inherited house or property if ownership has been established by a will or the probate court. But if ownership has not been established, such as with an estate with no will and/or a Court-appointed administrator, then all Heirs must agree to the sale. This also includes properties that have been put up at auction by the Court to pay off the estate’s debts. If a buyer purchases a house at auction but one or more of the Heirs disagree with the sale, the purchase must be put on hold while the disagreement is worked out and a settlement is reached.

How to Settle a Disagreement

There are a variety of options for settling disagreements among Heirs over an estate, but the first step is making sure that a loved one has an executor. Having a point person who is there to make sure the deceased’s wishes are followed as set forth in the will can ensure that there are no arguments over how the assets will be dealt with. If there is no executor and the will is being disputed, your next step may be hiring a mediator. Having a neutral third party to help work out differences will be much more affordable than a legal battle in probate court.

Best Practices

But what if the issue is around the executor themselves? Disputes can occur when a family member is named as the executor or trustee of a will, causing strife with the other family members. If this has happened to you, an option is for the person to decline the appointment and choose an independent fiduciary, such as an estate-planning attorney, to administer the will. Stepping back while a neutral party steps in might not just keep arguments from cropping up, but might also give everyone the time and space to deal with difficult emotions before it permanently damages your family. 

How is inherited property taxed when sold?

State and local governments in the United States collected over $5.3 billion in revenue from estate and inheritance taxes in 2020. That’s a lot of taxes! But with laws and regulations different from state-to-state, you’ll want to do your research and contact a lawyer with knowledge and experience of taxes and estate planning as you deal with a surprise inheritance or you’re writing your own will. 

State Tax Laws

Each state has different laws regarding inheritances. In the case of the sale of an inherited property, states may take an estate tax, an inheritance tax, as well as a capital gains tax on your inheritance. Currently, twelve states have an estate tax, 5 have an inheritance tax, and one has both an estate and inheritance tax.

Capital Gains Tax on Inherited Property

What is the capital gains tax and which states require it? The capital gains tax is paid on the appreciation of any assets that an heir inherits through an estate but it is only levied once the asset is sold for a profit, not when you inherit. This tax is then paid on the difference between the sale price and the purchase price of the property. Most states require this tax paid on an inherited property, but there may be exemptions for individuals selling a property for less than a certain amount. An example is Washington State, where the capital gains tax is not levied on homes and/or properties sold for less than $250,000. There may also be other legal ways to get around or reduce the capital gains tax in your state, including reinvesting the money in another property. Consult with a tax lawyer knowledgeable of the laws in the area you will be selling before proceeding with the sale of your property.

Estate Taxes

An estate tax is a tax paid directly out of the estate to the state before anyone is able to inherit it. Worried that you might get a huge hit taken from the estate? Don’t worry! The estate tax has a minimum threshold which in 2023 was $12.92 million for individuals. This means that the government is not able to charge you an estate tax unless your total taxable estate is worth $12,920,001. The remainder is passed on estate tax-free. Despite having such a high threshold, each year more states repeal their estate tax laws, losing out on millions of dollars of revenue.

Inheritance Taxes

Only six states have an inheritance tax, meaning that it is likely that you are in the lucky majority that won’t have to deal with this. But if you live in one of those six states – Maryland, Nebraska, Kentucky, New Jersey, Pennsylvania, and Iowa – you as a beneficiary/Heir to an estate will be required to pay taxes on your inherited assets and properties. But don’t worry – even if you live in a state that has an inheritance tax, you won’t have to pay a dime if the deceased lived in one of the 44 states that does not have this tax.

Documents required to sell an inherited property

To show legal ownership and place a property for sale, you will need to have a copy of the documents issued by the court that grant you the legal authority to act as the executor or administrator of the estate. These documents will establish your ability to manage the inherited property. Once a buyer is found and you 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. 

Do your research regarding what additional documents may be needed to sell an inherited property! Some jurisdictions may require additional property-related documents, including previous surveys, inspections, or any other relevant paperwork that pertains to the property’s condition or history.

Is there an easier way to sell?

Yes, there is! Colorado Property Partners makes selling an inherited house as simple as 1-2-3. We buy houses directly from people like you who have inherited a property and just want to move on without all the hassle.

Why struggle with repairs, real estate agents, and mountains of paperwork when you can sell to us? As house-buying experts, we’ve helped hundreds of people turn their inherited headaches into cash in their pockets.

Got a house that’s seen better days? No problem! Maybe the roof leaks when it rains. Perhaps the kitchen looks like it’s from 1975. Or maybe storm damage has left parts of the house unsafe. We don’t care!

Unlike regular buyers who want a perfect home, we buy houses in ANY condition. Broken windows? Outdated plumbing? Funky smells? We’ll take it all! After you accept our fair cash offer, our fix-it team jumps in and handles all those expensive repairs that would normally empty your wallet.

The probate process can feel like trying to solve a puzzle with missing pieces. Our experts know all the twists and turns of probate court and can guide you through the legal maze. We’ve helped many folks just like you navigate these tricky waters.

When you work with Colorado Property Partners, you get:

• A fair cash offer within 24 hours
• No repair costs (we handle ALL repairs)
• No real estate agent fees
• No closing costs
• No waiting months for a buyer
• No dealing with picky inspectors

Life is too short to be stuck with a property you don’t want. Call us today, and you could have money in your bank account by this time next week! Let us help you close this chapter and move forward with your life in the simplest way possible.

You deserve to be in control of your inherited property situation. With Colorado Property Partners, you decide when and how things happen. Need to sell super fast because you live out of state? No problem! Want to take a few weeks to go through family belongings first? We can work with that too!

Unlike traditional home sales where buyers can back out at the last minute or banks can delay your closing, our cash offers are rock-solid. Once we shake hands on a deal, you can count on it happening exactly when we say it will. Our average closing time is just 7-14 days, but we’ve closed in as little as 72 hours when sellers needed extra speed.

Remember, that inheritance shouldn’t be a burden—it should be a blessing. Let us turn your inherited property into cash you can actually use, without the stress that usually comes with selling a house. One phone call could be the difference between months of headaches and a quick, profitable solution!

Why Choose Colorado Property Partners? We’re Local!

Unlike big national house-buying chains, Colorado Property Partners is part of your community. We live and work right here in Colorado, and we understand the local market inside and out. This local knowledge means we can offer you the best possible price for your inherited property.

Being local also means we’re not some faceless corporation. When you call us, you talk to real people who genuinely care about helping their neighbors through tough situations. We’ve sat at kitchen tables with families just like yours, listening to their stories and finding solutions that work for everyone.

Our local team knows which neighborhoods are hot, which streets get the best prices, and what buyers in our area are looking for. This hometown advantage translates directly into better offers for you! Plus, we reinvest in our community by fixing up properties that might otherwise sit empty or fall into disrepair.

Many of our team members have been through inheritance situations themselves, so we understand both the emotional and practical challenges you’re facing. Choose the company that treats you like a neighbor, not a transaction number!