How to Sell a House You Inherited in the Twin Cities

First, we're so sorry for your loss. This can be a very challenging time for many reasons, and dealing with a house on top of everything else is tough at the best of times.

Inheriting a house from a loved one can be a fantastic gift, a challenging inconvenience, or a complicated and emotionally taxing burden... it really depends on your situation and what you plan to do with the property.

You're probably thinking, "I inherited a house, now what?" Should I keep it? Should I rent it? Should I sell it? How should I sell it?

Tons of options open for you, but...

... we can help.

We're a local, family-owned company here in Minnesota and we buy houses all over the Twin Cities. Every month we get calls from people who have inherited a house and aren't sure what to do with it. So here are some tips to help you through the process.

First things first: who actually owns the house right now?

This is the part that trips up a lot of families. A lot of people think that if there's a will, the house skips probate. Not true! A will just tells the court what the person wanted. In most cases the house still has to go through probate before anybody can sell it.

There are a few common exceptions here in Minnesota:

• Transfer on Death Deed (TODD). Minnesota allows these and a lot of folks use them. If your loved one recorded a TODD with the county, the house can pass straight to the beneficiary without probate. You'll usually just need to record a death certificate and an affidavit with the county.
• Joint ownership. If the house was owned as joint tenants (say, with a spouse), it usually passes right to the surviving owner.
• A living trust. If the house was put in a trust, the trustee can handle it without going to court.

If none of those apply, the house will go through probate. The court will appoint a personal representative (most people call this the executor), and that's the person who will have the authority to sell. Until that happens, nobody can really sign a purchase agreement on the house... even if everyone in the family agrees.

Take care of the house in the meantime

Probate can take anywhere from 6 to 12 months, and sometimes longer. During that time somebody has to look after the place.

• Keep the heat on. This is Minnesota! A vacant house with the heat off in January is a frozen pipe waiting to happen, and that gets expensive fast.
• Call the insurance company. A lot of homeowners policies stop covering a house (or cover a lot less) once it's been sitting empty for 30 to 60 days. Ask about a vacant home policy.
• Make sure the mortgage is paid. If there's still a mortgage on the property, the payments don't stop just because the owner passed away. Talk to the lender early.
• Keep up on the property taxes, the lawn and the snow. The city doesn't care that it's an estate.

What are your options when you inherit a house?

There are three basic paths you can take... you can live in the house, you can hold onto it as a rental property, or you can sell it.

Selling a house in a normal scenario is pretty straightforward, since the owners are usually on the same page about the closing date, sale price, etc. Selling an inherited house can be a lot more complex. In many cases the house is left to a number of people, like siblings or cousins, who all have different needs, interests and financial situations.

Here's a few important things to think about before you decide:

1) The investment is only as good as the manager.

Some people who inherit a house decide to keep it and rent it out for extra income. That can be a great strategy for sure. You just need to be ready to manage the property and all the hassles that come along with tenants and toilets. If that isn't the best use of your time, hire a professional property manager or cash out now.

2) Property ownership costs money.

It's rare to see a house that's been perfectly maintained, especially if your loved one lived there a long time. Most inherited houses need some major work. If you're thinking of keeping it, have an inspector give you a rundown of what needs to be done in the next five years and what it'll cost. Surprises are very, very expensive.

3) Selling for top dollar costs money too.

If you list the house with an agent, there's no guarantee it sells as soon as it hits the market. It might take months. And once you have a buyer it usually takes another 30 to 45 days to close. On top of that there's the cost of getting the house ready... cleaning it out, painting, fixing up the yard, repairs the buyer's inspector finds, plus the agent's commission at the end.

4) Uncle Sam wants a piece of the action.

Minnesota doesn't have an inheritance tax, but that doesn't mean taxes aren't part of the picture. Whether you sell now or later can make a real difference on capital gains. Talk with a tax professional before you make any big decisions.

5) Consider all your options.

In certain situations we may be able to structure something a little different, like a lease-option, that lets you rent and sell at the same time. These kinds of deals can be complicated, but we're happy to walk through it with you.

Selling your inherited house to a cash buyer

For a lot of families the simplest route is to sell the house as-is to a cash home buyer. You skip the repairs, the cleanout, the showings and the months of waiting while the estate keeps paying the bills.

If you decide to sell your inherited house to Trademark Properties, here's how it works:

• We buy it as-is. You don't have to clean it out or fix anything. Leave what you don't want.
• No commissions or fees. We cover the closing costs, so the price we offer is what the estate actually gets.
• You pick the closing date. We can close in as little as 7 to 10 days once the paperwork is in order, or we can wait until the estate is ready.
• We close at a local title company. They make sure everyone who needs to sign, signs, and that the money goes where it's supposed to.

And if the estate isn't quite ready to sell yet, that's ok too. We can still take a look at the house and give you a number so the family knows what its options are.

We're not attorneys, and nothing here is legal advice. Every estate is a little different, so it's always smart to talk with a Minnesota probate attorney about your situation.

Have questions about your inherited house? Give us a call at Call us or fill out the form and we'll be in touch within 24 hours. There's never any obligation!