Over the past decades, we have advised and represented many clients who have inherited homes from parents or relatives, and it is often an overwhelming experience filled with emotions, many questions, and months of work. The first order of business is the settlement of the estate. Once the home is legally received as an inheritance, deciding to sell, rent, or keep the home is the first step in determining what to do next.
John Karadsheh
Often heirs live out of state or there are multiple heirs, so we have found that the majority of our clients elect to sell the property they have inherited. For those who decide to sell the home, it is a good idea to work with a team of professionals including an estate lawyer, accountant, and a Realtor with estate experience who can offer advice and guidance throughout the process.
Although each situation is unique, here are a few tips to consider when you have inherited a home:
• Make a Short-Term Plan to Maintain and Secure the Property.
One of the first things to address when inheriting a property is the maintenance and care of the property. The mortgage, taxes, homeowners’ insurance, HOA dues, utilities, and routine services (landscaping/ pool/pest service) need to be maintained. It is also beneficial to make sure someone is checking on the home regularly in case any issues arise (i.e. green pool, fallen tree, auto-ship package deliveries, HVAC issues, etc). Additionally, make sure the property is properly secured and provide the neighbors with your contact information in case they see anything of concern at the property.
• Learn About the Property. Do your best to learn about the home in preparation for the sale. Are there invoices for repairs? Are there service agreements for HVACs or other mechanicals? Are there any remaining warranties on appliances, HVACs, the roof, or termite treatments? Is any of the equipment leased (water systems, solar, alarms, etc.)? If you are not familiar with the property, this part requires some investigative work including calling maintenance providers who may have recently worked on the property, speaking to neighbors (who may know more than you realize), and evaluating paperwork. We recently sold an estate property and discovered that the owner had taped a list of her service providers inside a cabinet door. It was a great find that helped us quickly get information about the property!
• Consider Getting a Home Inspection. Has the home been well maintained or is it in need of repairs? A home inspection will help you to understand the condition of your new asset. An inspection may also help you catch any imminent maintenance issues that could cause issues while you are preparing the home for sale (i.e. leaking water heater, faltering HVAC, roof leak, etc.).
• Empty the Property. Sorting through the belongings of a loved one is the most overwhelming, time-consuming, and emotional part of inheriting property. Start by making a pile of items you wish to keep in one room of the house. Then, set up a weekend when family members can shop the house for items they may want. After the family weekend, organize to have a charity come and pick up the remaining items. Setting timelines for the clean out will keep the process from dragging on for years (yes, really years). Just remember, the longer you keep and maintain the property, the less you may net from the asset.
• Prepare the Property for Market.
Once the home has been emptied, evaluate the condition. Would it be wise to invest in fresh paint and new carpet? At a minimum, a thorough cleaning is a must. An experienced Realtor can help you evaluate what needs to be done to achieve the highest market price or help you price the home according to what you are willing to do to prepare the home for market.
Inheriting a property can be an amazing windfall but it does not come without a contribution of time, effort, and emotion. A property also requires maintenance, and understanding the monthly cost of operating the property on the front end will help you establish a reasonable timeline for selling the asset. We have sold many estate properties for clients and are here to help you navigate the challenges and help you prepare a plan that is manageable. As always, we are here to help!
John and Natascha Karadsheh are co-owners of KOR Properties, a boutique real estate brokerage serving the Valley of the Sun.
John is the Designated Broker of KOR Properties and has been a Multi-Million Dollar producing agent for over 20 years. He is an Accredited Buyers Representative (ABR) and Certified.
Residential Specialist (CRS), and serves on the Arizona Regional MLS (ARMLS) Rules & Policies Committee, ARMLS Appeals Committee, and the West and Southeast Realtors of the Valley Professional Standards Committee.
Natascha is a Multi-Million Dollar Producer and Accredited Buyers Representative (ABR). She is the Founder of Mesa Food Truck Fridays, a Member and Past-Chair of the City of Mesa Economic Development Advisory Board, and on the Board of Directors of the Greater Phoenix Economic Council.