Well, if you're not both on board with how you're going to deal with the house you're in trouble. I'm guessing you want to keep the home as a rental or fix & flip, your brother/sister/cousin wants to sell tomorrow and get their share of the loot.
You've got to fix that part first before you can proceed. If you are equal inheritors, only a court can force one side or the other to sell.
I am looking for information on a inherited home and the cost to sell the home, what are the strategies that could maximize the sale,
cost to consider like taxes, or other,
currently 2 people will own the home, 1 wants to keep the home for short term 2-3 yrs, the other wants the house gone as fast as possible,
Home is only needing cosmetic work, all systems and roof has been replace within last 2 yrs,
I may not be asking the correct question since I have not faced this situation before,
All responses are appreciated,
First, it depends on the state the property is in and how the property was inherited. By Will, Trust, Probate, etc.
You want to be able to offer "clear title" to a buyer. I'd ask a local escrow company/attorney what must you do to have "clear title". It could be very simple or quite complex based on specifics.
Second, everybody on title has to be willing to sell and it requires their un-coerced signature. ;-)
If there is a mortgage, that has to still be paid, along with the property tax and insurance and HOA (if there is an HOA), electric, water, special assessments, etc. Any loan(s) gets paid off out of the sales proceeds.
Normal costs would be real estate agents for 5% to 6% of the sales price, concessions, repairs, title, escrow, and other "junk" fees. Use a total of 9% of the sales price just to be safe. So, a $300,000 property, figure 9% times $300,000 or about $27,000 cost to sell.
If the inheritance was done properly, you probably have a "stepped up" tax basis, so little if any capital gains. If you wait, there is capital gains going forward.
Thank for the information, my concern was the capitol gains tax, I would like to buy the other person out for their 1/2 of the property and was not sure how to factor the capitol gains tax in the deal, I think offering them 1/2 minus the 9% may make good sense in this case,
