So, you’ve inherited a house in New Orleans from a loved one – what now?
Inheriting real estate property can be both a final blessing from your loved one and a somewhat responsibility-ridden curse, depending on your circumstances. The emotional stress of dealing with a family member’s death doesn’t make this any easier, either.
It’s normal to feel stuck, unsure what to do next, but the thing is:
The inherited house in New Orleans is yours now, and you have to do something about it.
There’s plenty to take into account here, but as the will’s executor and legal heir, you’ll be presented with three options:
Moving into the home, renting it, or selling the inherited house.
We can’t help you with the first two options – but the third one is our specialty.
Allow us to help you navigate the sale process and handle your New Orleans inherited property in a way that won’t come back to bite you – legally or financially.
What To Do When You Inherit A Home: Know Your Options
Inheriting a home in New Orleans may seem like a windfall at a glance – yet, it often ends up being more challenging than most people realize:
The inherited property in New Orleans might have to go through probate before it’s claimed as an inheritance. It could take over a year and a half – up to two years – for a probate to be finalized.
Furthermore, you have to keep up with the monthly mortgage payments and settle any unpaid debts. Otherwise, you risk losing the house to foreclosure.
The current state of the inherited house could pose a problem in the long run. Some inherited homes in the New Orleans area require expensive repairs and renovations that the new owner might not be able to handle financially.
Also, the inherited property will usually come with many emotional attachments, especially if you and your siblings inherited it after both parents’ death. That’s enough to make most individuals reluctant about selling the home.
You can either keep it or sell it – and both options can be profitable.
Before you make any decisions regarding your inherited house, you must understand your options and what each one implies in terms of financial obligations and legal responsibility.
Option 1: Live in it.
The decision to keep the home and make it your primary residence can be driven by emotions, especially for those who inherit a house after both parents’ death. The emotional aspects don’t mean this is the wrong choice – but make sure that it makes sense financially.
Yes, you might be able to exclude up to $250,000 – $500,000 for married couples – in capital gains taxes if you sell the property eventually.
However, you’ll have to move to New Orleans, live in the house for at least two years, and, during that time you’ll be responsible for property taxes, insurance, and repaying the reverse mortgage.
Option 2: Rent it out.
If the home you inherited in New Orleans is in good condition, you could keep it and turn it into a rental property. That way, you don’t have to sell a house that might hold sentimental value – but you still get to boost your monthly earnings through passive income.
It’s a win-win situation, so long as you keep in mind the tax implications and responsibilities that come with being a landlord.
You won’t qualify for the home sale tax exclusion, and you’ll have to handle the costs of owning rental property – including mortgage refinancing, property taxes, repairs, maintenance, and possibly eviction costs.
Option 3: Sell it as-is
If you don’t want the added responsibilities that came with the inherited property, the third, highly recommended choice is to sell the NOLA home. You’ll want to do this sooner rather than later; a properly recorded transfer-on-death deed could speed things up, as you won’t have to go through probate court.
It’s best to cut the holding period short and avoid insurance, mortgage, estate taxes, and upkeep costs.
A quick sale comes with another financial advantage:
Inheriting property grants you a step-up tax basis – the home’s fair market value at the time of the owner’s death, not the purchase price – and dictates your capital gains tax liability. Your taxable gain is determined by subtracting the step-up basis from the selling price and is usually lower the faster you sell.
Get a Fair Cash Offer to Sell Your Inherited House in New Orleans As-Is
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Decided To Sell The Inherited Property? Here's What You Need To Know
The idea of owning another property might seem attractive. Still, you have to ask yourself whether that makes financial sense, and if not, start gathering information on how you can sell the inherited house.
If that’s the route you want to go, keep in mind that the process won’t be that simple – and working with a New Orleans real estate agent will add more to your plate.
Let’s go over the process of selling inherited property – and share some valuable information regarding the financial and tax implications of doing so.
Transferring An Inherited Home
Given the value of real estate assets, you will have to go through some legal formalities before getting ownership of the inherited property in New Orleans – which is a lot simpler when there’s a Will.
If not, there are three ways for someone to transfer an inherited home:
• Probate, which ensures that the estate goes to the right heir in case there’s no legal Will
• Transfer-on-death deed, or beneficiary deed, which can be used to transfer ownership and bypass the probate process
• Living trust, which is a legal document that specifies who will manage the sale of the inherited house so that the heirs can split the proceeds
Understanding Tax Implications
Tax law is, by no means, something to be taken lightly. We strongly suggest that you talk to an attorney if you’re having difficulties understanding the financial obligations of inheriting property.
Still, here are a few pointers on the tax implications of selling an inherited property in New Orleans:
• Estate tax is a federal tax based on the fair market value of the entire estate at death, or, in essence, tax on an individual’s right to transfer ownership of their estate
• Inheritance tax is based on the portion of the estate that the beneficiary inherited and their relationship to the deceased person but is only imposed in six states
• Capital gains tax is a federal tax on any profit – long-term or short-term capital gains – the beneficiary receives when they sell the home, based on the property’s market value when they inherit it
• Property tax is typically set at a county level by local governments and is based on the value of the property, including land
Keep in mind that tax exclusions don’t apply to inherited houses – not unless you plan on living in the house for the next few years that is. So, yes, you’ll be required to pay capital gains taxes when you sell the home, but at least you have the step-up tax basis working to your advantage.
And yes, the IRS would very much like to know if you do sell an inherited property. The proceeds are considered taxable income.
You can’t – and shouldn’t even try – to escape taxes.
Report this real estate transaction and your profits, be it capital gains or capital losses, to the IRS, and pay capital gains tax you owe; the home isn’t officially sold until you do.
Reaching An Agreement & Selling Your Parents’ Home
Depending on the family dynamic and everyone’s plans, reaching a consensus on how to proceed can be challenging. The fact that there are sometimes several other family members involved in the process contributes to the complexity of selling an inherited property in New Orleans.
If there’s one sibling who might want to keep your parents’ home, he or she could buy out the other siblings’ interest based on the value of the property.
Otherwise, you’ll have to negotiate – which may involve attorneys and court judgment – to get all siblings on board with the estate sale before the executor can ask the court for approval. You can then split the sale proceeds.
Choose Move On & Sell Your Inherited Property in New Orleans Fast
If you’re set on selling the house you inherited from your parents or close relatives and hope to avoid money-draining repairs and renovations, we have you covered.
Our business is built on helping others sell their houses – including inherited houses in New Orleans – as-is, fast, and for cash.
Not to brag, but that’s what we do best at Move On Cash Home Buyers.
Here’s why you might want to skip a traditional real estate sale and what we can do to help make the process as straightforward as possible!
Reason #1: We Offer You A Simple Four-Step Process
If you recently inherited a house in the New Orleans metro area that you’re hoping to sell as-is for cash, you’ll be happy to know that our personalized services can help you do just that.
Pick up the phone, tell us about the inherited house and why you decided to sell it – and we’ll take it from there.
We always put our clients first – and keeping things transparent and making sure that this sale goes as smoothly as possible is part of it. And yes, we’ll guide you through the process step by step; you are our number one priority!
While we’re at it, here’s a quick overview of what to expect – just to show you how simple it really is:
- It starts with a call. You contact us and tell our team a bit more about the house you inherited and are hoping to sell
- We assess the house. We establish the home’s fair market value based on the house comps in the area, our assessment of the property’s condition and current New Orleans real estate market, and make you a cash offer
- We close at no extra cost. You review our offer – no obligations and no pressure – we set a closing date that works for you, and our team takes care of the sale details for you at no extra cost
- You get paid in cash. We don’t expect you to pay any closing fees or commissions; we pay the full price, as agreed on in the sale contract, directly to you and in cash
Reason #2: We Buy The Inherited Property As-Is
When you inherit property in New Orleans or anywhere else in Louisiana, you may find that it’s in pretty bad shape, especially if it belonged to elderly parents or relatives who weren’t able to take good care of it. As such, it’ll likely be viewed as a “fixer-upper,” not just by the real estate agent but by potential buyers, too.
That puts you, as the new owner, in a challenging, money-draining position:
You have to lower the asking price or prepare for the sale and make the home more marketable by taking care of big-ticket repairs, renovations, landscaping, and general upkeep. And that can often cost you thousands of dollars.
We offer you an alternative way out:
Rather than expecting you to invest in repairs and remodeling, we will buy your home as-is – because we see past the property’s aesthetic value.
It doesn’t matter what the current state of the house is; you can still expect to get a fair cash offer from our team if you decide to sell the property!
Reason #3: No Real Estate Agent Commissions & Fees
It’s not that we have something against real estate agents; we don’t.
However, keep in mind that the pre-sale inspection, the realtor’s commissions, and closing fees can take up to 10% off the proceeds. We won’t even go into how much money you’ll have to spend on remodeling and big-ticket repairs before the actual sale takes place.
Given that traditional sales often cost thousands of dollars, we want you to know that listing on the market isn’t necessarily the best way to sell an inherited home in New Orleans.
You can cut out the middleman – and all the additional costs that come with it – and go straight to us!
We’ll buy the property directly from you and pay you in cash. What’s more, we’ll take care of the transaction details – be it big or small – and won’t ask you to pay us a single cent for it.
In short, selling to us means you’re getting the full price we agreed on in the contract – no fees, no commissions, and no hidden costs!
Reason #4: We Close Fast & Pay The Full Price In Cash
Most houses spend at least a month listed on the market and then another month or two before the sale is finalized. You’ll have to cover any costs that might arise during the so-called holding period – including property taxes, mortgage, and outstanding debt – and that money is coming out of your pocket.
If you’re hoping to skip the renovations, listing, waiting on buyers, and paying thousands on real estate agent commissions – in short, you want a fast and easy sale – we have you covered.
We’re buying the home directly from you and paying in cash – and that means two things:
One, the sale doesn’t depend on the local market, seasonal factors, or the property’s location. And two, we can close on the house in a matter of days.
How’s that for a fast, straightforward, no-hassle sale?
Get A Fair Cash Offer For Your Inherited House in the New Orleans Area
Inheriting a house that once belonged to your parents or loved ones – and then deciding to sell it – is going to spark a lot of emotions, both good and bad.
We get it, and we believe you should take your time when making this choice and think about the estate sale’s legal, financial, and emotional aspects.
If – and when – you decide that selling your inherited house in New Orleans is the route you want to take, give us a call. We’re confident in the quality of our customized services and our team’s ability to guide you through the process and work out a solution that fits your situation.
Call us today at (504) 356-8000, and we’ll do our best to ensure a quick and straightforward sale – for cash and in as-is condition!
Sell Your Inherited House As-Is & Fast
Get a fair cash offer within 24 hours. No cleanup, repairs, or work needed on your part. No commissions or fees involved.
Get A Fair Cash Offer For Your Inherited House in the New Orleans Area
Inheriting a house that once belonged to your parents or loved ones – and then deciding to sell it – is going to spark a lot of emotions, both good and bad.
We get it, and we believe you should take your time when making this choice and think about the estate sale’s legal, financial, and emotional aspects.
If – and when – you decide that selling your inherited house in New Orleans is the route you want to take, give us a call. We’re confident in the quality of our customized services and our team’s ability to guide you through the process and work out a solution that fits your situation.
Call us today at (504) 356-8000, and we’ll do our best to ensure a quick and straightforward sale – for cash and in as-is condition!
Sell Your Inherited House As-Is & Fast
Get a fair cash offer within 24 hours. No cleanup, repairs, or work needed on your part. No commissions or fees involved.
