Inheriting real estate in Kansas City comes with a lot of responsibility and often a lot of time and stress, especially if it is an older property in a state of disrepair. There are a lot of situations where the property became neglected or is need of major repairs or updates, leaving you with an unwanted emotional and financial burden. If you have inherited property, here is some important information you need to know about inheriting real estate in Kansas City.
One thing you should know about inheriting real estate in Kansas City is that the recipient of an inheritance of real estate is financially responsible for the property. This includes any outstanding debts (taxes, liens, etc.) attached to the property.
Additionally, you are now responsible for all upkeep. If this is an investment property, you are now responsible for tenants. Property management is not easy task, especially if you don’t have a ton of experience with it.
You will also owe property taxes, HOA fees (if applicable), and homeowner’s or landlord insurance. Not to mention utility bills.
It is common for inherited homes to be in need of some TLC, and these repairs could cost a pretty penny when inheriting real estate in Kansas City. Whether your intent is to live in the property or sell it, there is likely going to be some repairs that you will need to address.
The wisest step would be to hire a professional home inspector to review the property and provide you with a written report on any issues with the property. This service typically costs around $500, but could save you a lot of trouble with dealing with a potentially burdensome project.
Once you are aware of the issues that need to be addressed, be certain to get estimates from multiple licensed professionals. Make sure to get estimates of both the time frame and total overall cost involved.
Cleaning Out the Property
Inheriting real estate in Kansas City can be a very emotional time and may even make it difficult even enter the property. Regrettably, you will need to either remove all of the personal property from the property yourself or hire professionals.
Depending on the condition of the property, and the tendencies of your benefactor, this could literally mean going through mountains clutter and decades of belongings. Delaying the process to avoid painful memories can be extremely costly, delaying repairs on the property lowers the value as it continues to deteriorate.
There is No Free Lunch (aka taxes)
Just like with most other large items that you receive as gifts, there are major tax implications in regards to inheriting real estate in Kansas City. Under the Unified Gift and Estate Tax system, estate tax is based on the value of 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 11.18 million. You will also want to be certain to investigate gift tax as well. Additionally, there are several states which do have estate taxes, so familiarizing yourself with these laws may be helpful in the future.
Purchasing Another Property
While you are gaining an asset worth money when inheriting real estate in Kansas City, you are taking on the debt and other financial responsibilities of that property as well. Depending on the remainder of the mortgage and any other expenses that are now in your name, your debt to income ratio may now mean you no longer meet the guidelines to qualify for a loan. Any other repairs that you may need to make could deplete your savings, too. Thus, taking on this inheritance may restrict you from buying the dream house of your own.
Working With Us To Sell Your Inherited House in Kansas City
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 Kansas City. Working with Phenomenal Properties KC means total convenience, with no showings or open houses. Just pack what you want and leave the rest behind. Phenomenal Properties KC will help you with the paperwork and make the entire process easy, explaining every step along the way. The price Phenomenal Properties KC offers is what you will receive at closing. Just send us a message or call or text us at 913-912-6262 to discuss the market value of the property and the possible options of selling your unwanted inherited property.