Inheriting real estate from a loved one can seem like a financial windfall, but taking possession of a house can come with significant added costs and other complications. For instance, the house may need more repairs than you can afford, or you could find yourself stuck sharing the property with several other people. Below are some of the unexpected situations that often arise when inheriting a home.

What Happens When You Inherit a House?

Added Tax Burden

Fortunately, when you inherit a home, the property’s tax basis is adjusted to its current market value. This means that you won’t have to pay capital gains tax on how much the property appreciated while your family member owned it, even if you decide to sell. However, you will be responsible for paying property taxes every year, which may add up to thousands of dollars in additional expenses.

Mortgage Payments

Inheriting real estate also means taking responsibility for the mortgage payments if the property wasn’t paid off before your loved one passed away. Depending on the terms of the mortgage, you might be required to start making regular payments, pay off the balance of the loan immediately, or sell the property.

Maintenance & Repairs

Home maintenance expenses can be very high, especially if the house needs major investments like a new roof or an HVAC upgrade. You’ll also be responsible for landscaping the yard, insuring the property, and paying for any other repairs the property may need. If you can’t meet these obligations, your best option may be to hire a real estate agent to sell the property quickly.

If you’ve inherited a home in Denton, Lake Dallas, McKinney, or Corinth, TX, let Big Journey Homes - Lauri Bauman guide you through the complexities of the real estate market. She’s been serving homeowners throughout the area for almost 20 years, developing the in-depth expertise and resources to ensure you get the fastest sale possible at the best price. Follow her Facebook for more real estate tips and advice, and call (940) 321-5111 or visit her online to find out how she can take the stress out of selling your home. Text (214) 566-1088 to reach this Realtor® directly.