Inheriting a house can be an exciting venture, whether it’s your childhood property, a vacation getaway or a grandparent’s home. While you may look forward to making new memories in the home, there are also financial and legal responsibilities to consider. You may also need to negotiate with your siblings or other heirs, adding more stress to the situation.
Whether or not to keep or sell an inherited property depends on several factors, including the condition of the house, its location and what other heirs want to do. For many families, it makes sense to sell the property and split the money. This way, everyone can do what they want.
To help you make an informed decision, here are the costs associated with inheriting a home in Henderson, NV.
Federal estate tax applies when an estate’s value exceeds a certain threshold. This tax comes out of the estate before you take ownership of the property. Your property will only be affected if the estate lacks enough liquid assets to pay estate taxes.
Some states also have a state inheritance tax, though Nevada is not one of them. This is a good thing, as state inheritance tax comes out of your pocket for the portion of the estate you inherited. Other taxes to consider are property taxes and capital gains taxes, which you can learn more about here.
When inheriting a home, you’ll likely want an appraisal so that you can get a fair valuation of the property. An updated appraisal will reflect any upgrades or improvements that have been made to the property as well. Fortunately, appraisals aren’t a major cost to the beneficiary and will run you about $300 to $400.
Home maintenance can be a big expense, especially if the property wasn’t maintained. Some inherited properties simply need a facelift – new carpet, new paint, a deep cleaning, etc. Others need extensive repairs and updates. If you’re not sure what the property needs, get a few quotes from local contractors. Even if you choose to rent out the house, it will still need to be updated.
It costs money to run a house, so be sure to factor in the cost of utilities. You can find the previous owner’s utility bills from the past year to budget for this. Even if you won’t be living in the house full-time, you’ll still need to keep the heat on in the winter and the air on in the summer. These expenses can add up quickly!
Homeowners insurance is another expense that you can’t overlook. You do not immediately inherit the deceased homeowner’s insurance policy, so you’ll need to find your own. Typically, insurers give 30 days or the remainder of the policy to find insurance. Now is the time to start getting quotes, even if you plan to sell the house in Henderson, NV.
Running a title check on the Henderson property will let you know of any outstanding debts or liens on the property, such as second mortgages and unpaid contractor bills. These debts typically follow the property, so you won’t be able to sell until the debts are paid off.
Get a Free Cash Offer On Your Inherited House
We Buy Any Vegas House works with people who have inherited a property. We are happy to provide you with a free cash offer so that you can compare this to other alternatives like renting out or keeping the house.
When you work with our cash buyers in Henderson, there are no inspections, appraisals or requests. We buy properties as-is and close in just two weeks or less. Contact us today and see what we will pay for your inherited property!