Inheriting a house can seem like a blessing in some situations, but it’s important to be aware of the potential hidden costs that come with it. It is very likely that you have some mixed emotions about the whole thing. You may be dealing with grief, costs, family members, and all sorts of things that nobody can really prepare you for. When taking on an inherited property, knowing what it will cost you is important. Here is a look at some of the costs you may face when inheriting a property in Massachusetts so you can make the best decision throughout the process.
Once the house is in your name, the property taxes will become your responsibility. When you inherit a house, you also inherit the property tax bill. Depending on where the house is located, property taxes can be quite high. Taxes vary dramatically by location but can make a big difference in the holding costs you’re paying on the home. You may also be on the hook for estate taxes if the estate lacks the money to cover the bill. There can also be capital gains taxes in certain situations and a state inheritance tax depending on where your property is located. No matter how you look at it, you’re bound to pay a good amount in taxes as the new owner of the property. Make sure you budget for these taxes so you’re not caught off guard.
Whether or not someone is actively living in the home, you’ll want to pay to keep the lights on. The property will need water and power, which can add quickly to the mothy costs you experience as the owner of the property. It is for this reason that many people who inherit a house in Massachusetts, search for the fastest way to sell. Paying the bills on an empty house simply doesn’t make sense. When there are no active plans for the property, sometimes a fast sale is best.
Maintenance and Repair Costs
Houses require ongoing maintenance and repairs. Does the house have a lawn, pool, or fruit trees? Things like this all need to be maintained regularly. Whether you do the work yourself or hire someone to do the job, you will be dedicating time and money to the general maintenance of the home. There are also repairs, clean-up, and the sorting of belongings to consider too.
If the house you inherited hasn’t been well-maintained, you may be faced with costly repairs to bring it up to code. Even if the house is in good condition, you’ll still need to budget for ongoing maintenance costs, such as lawn care, snow removal, and cleaning.
Sadly, when a loved one passes away, disputes between family members can arise. If you have siblings or others with a claim to the estate, you may find yourself dealing with mediation fees. A quick way to resolve this is a buyout or a fast sale, dividing the profits. Pegasus Home Buyers can facilitate a fast and fair sale of your property, closing in a matter of days. This solution has saved countless families from having to deal with mediation or court.
While these are just a few of the costs to own a home, there are more to consider. You will need to pay for appraisals, cleaning, listing fees, and more. By selling the house quickly and as-is, you can save money, while liquidating the property much faster.
If the house you’ve inherited in Massachusetts still has a mortgage, you become responsible for making payments. Even if the previous owner had a life insurance policy that covered the balance of the mortgage, the process to pay it off can take time. Meanwhile, you’ll need to keep up with the monthly payments to avoid defaulting on the loan, which could lead to foreclosure. Also, be aware that the lender may require you to refinance the loan into your name, which could potentially mean a higher interest rate or different terms than the original loan.
Another cost associated with inheriting a house is homeowners insurance. This is an essential expense as it protects the property from damage caused by disasters like fire, storms, and theft. The cost of homeowners insurance can vary greatly depending on the location and size of the house, as well as the coverage level you choose. If the house is vacant, you may need to purchase vacant home insurance, which can be more expensive than a standard homeowners policy. Make sure you shop around to get the best rate and understand the coverage you’re purchasing.
In many cases, an inherited property must go through a legal process called probate. This is the process where the court validates the deceased’s will, pays off any outstanding debts, and distributes the remaining assets to the heirs. Probate can be a lengthy and costly process. Legal fees, court costs, and other expenses can quickly add up. If the will is contested, the probate process can become even more expensive and time-consuming. If you’re considering selling the property, keep in mind that you typically can’t do so until the probate process is complete.
Dealing with Personal Belongings
When you inherit a house, you may also inherit all the personal belongings that are still inside. Sorting through these items can be a time-consuming and emotionally draining task. You’ll need to decide what to keep, what to sell, what to donate, and what to throw away. If there are a lot of items, you may need to hire a professional estate cleanout service, which can be costly. Also, if there are valuable items like antiques or collectibles, you may want to hire an appraiser to ensure you don’t accidentally give away something of significant value.
Inheriting a house in Massachusetts can come with a wide range of unexpected costs. Knowing what to expect can help you make an informed decision about whether to keep, rent, or sell the property. Always consult with a professional real estate advisor, like Pegasus Home Buyers, who can guide you through the process and help you decide what’s best for your particular situation.
Sell Your House to Avoid Costs
If you decide to sell the inherited house, you’ll need to factor in selling costs, such as real estate agent fees, closing costs, and any repairs or upgrades needed to make the house marketable. These costs can add up quickly, so make sure you have a realistic understanding of what you’ll need to spend to sell the house. That said, a direct sale to Pegasus Home Buyers will eliminate selling expenses altogether.
How Pegasus Home Buyers Can Help
Do you have questions about inheriting a property in Massachusetts? Pegasus Home Buyers can help you find the answers you need. We understand that it may be a difficult time, and we are very compassionate and understanding. We will never talk you into a deal that isn’t right for you – we will simply give you the facts and leave the rest up to you!
Inheriting a property in Massachusetts can come with costs you may not be prepared for. Pegasus Home Buyers can help you with any unwanted inherited property in the Massachusetts area, making the process simple for you. A direct sale to Pegasus Home Buyers will allow you to sell quickly, without any costs or headaches so that you can utilize your inheritance without any more stress. Give us a call today to learn more about how we can help with your inherited property in Massachusetts. (781) 810-4242