If you’ve recently inherited a home in Yorba Linda, California then you may already understand how stressful the inheritance process is and how stressful the sales process can be. In this article, we aim to explain the process of inheritance and the sales process for your newly inherited home.
Before we get started, if you’ve recently inherited a home due to the death of a loved one, we are terribly sorry and wish you nothing but the best.
Challenges of Selling an Inherited Home
When selling any property, regardless of how you obtained it, there will always be some obstacles. In the case of inherited homes there are a few challenges that many will face.
These challenges are:
- Property Tax
- Capital Gains Tax
If you are unsure about these, don’t worry – we’ll cover them more in depth.
If the inherited home has come to you by surprise, chances are the home went through a process called probate. Probate is the process of evaluating estate assets owned by a formerly deceased person. During probate, the court system provides a final review and begins the distribution of asset processes.
In many cases if a will is left behind, the probate process will still occur, although this tends to vary state-by-state. In California, a will is respected, but probate still occurs just to ensure that the will is legitimate.
If the deceased did not leave a will, the probate process is extended a bit further in court and allows for civil negotiations of the heir, oftentimes, this can result in “bad blood” as strong emotion tends to be present during these times.
If the inherited home has a mortgage on it, your steps aren’t over. Someone needs to be liable for that mortgage and that someone my friend, is you.
When you inherit a house in Yorba Linda you can typically expect a hefty mortgage as Yorba Linda is a very wealthy area.
Don’t worry though, you’ll likely have options.
- Sell home furnishings
- Rent the home out
- Sell the house
Just as with homes that have a mortgage, all homes have property taxes. These are taxes that are typically paid to the county or state for ownership of the lot/land. When you inherit a home, you’re liable for these property taxes which includes future and outstanding balances.
By default, you are liable for these taxes, however, you can opt to not pay them by selling the home. In this case, you’ll be responsible for capital gains tax.
Capital Gains Tax
Capital gains tax occurs when you sell the home for more than you purchased it for. In your case it was inherited so it’s free. You’ll be responsible for paying the capital gains tax.
The process is pretty straightforward with this formula:
Property sale price (minus) market value on the date of the owners passing (equals) capital gains tax payment.
Of course it doesn’t really just end at that formula, you must also factor in your annual income, and your filing status.
Capital gains tax is where most typically struggle, so it’s strongly encouraged that you speak with a tax expert before making the decision to sell.
Understanding the Current Yorba Linda, California Real Estate Market
The current market in Yorba Linda, California is reasonably hot as of 2/16/2023 it’s a sellers market with more buyers than homes for sale, making it a great time to sell your inherited property.
However, a great market unfortunately does not exclude you from buyers requests, such as repairs. This may also exclude some from getting an FHA loan on the home, if repairs are needed to be deemed “safe” and “livable.”
Factors That Affect Your Home’s Value
It’s without a doubt that having a home that needs repairs will directly affect the sales value. The primary issue with inheriting a home in Yorba Linda is that since the area is so wealthy, the cost of repairs will typically be much higher than other areas.
Here are just a few of the most common repairs newly inherited home owners have to make:
- Issues with plumbing
- Foundational damage
- Structural issues
- Windows and/or window seals
When it comes to selling an inherited home, as long as you’ve successfully gone through the probate process and have the title/deed in your name, you can sell the home through any of the standard sales methods.
The as-is sales process is great for those that inherited a Yorba Linda home that needs a lot of repairs. The downside is that since Yorba Linda is a wealthy community, there are fewer buyers who want a fixer upper.
The traditional market is partnering with a realtor and listing the property online using tools such as MLS, Zillow, Realtor and their own websites.
The traditional market is a great option for those who don’t have many repairs, and are not in a hurry to close on the home.
If your inherited home has a mortgage and you are not living there or don’t intend to, this is likely not the best option for you for a few reasons:
- You need to meet the buyers requests
- You’re paying for a property that you aren’t living in
- You need to pay closing costs
- You need to pay realtor fees
Selling to Osborne Homes
The last option and subjectively the best option is for those that need to get rid of their inherited homes quickly and that is by selling your home to Osborne Homes.
We buy inherited homes in any condition for cash and typically can close within a week, however, we work around your timeline, so we can extend it as long as needed.
[Sell Your Yorba Linda California Home to Osborne Homes]
Working with Osborne Homes
The process of working with Osborne Homes is arguably one of the easiest sales processes out of all your options and that’s because our process has just 4 simple steps, not hundreds.
- Reach out to us
- Schedule virtual appointment
- Deal proposed
Skip The Stress, Sell Your Inherited Yorba Linda Home To Osborne Homes
Thanks for reading! If you have questions about the process please reach out to us. If you’d like to sell your Yorba Linda home and close in as little as 7 days, sell your home to Osborne Homes.