Home sellers in Texas spent an average of 9 to 24 months selling their inherited property.
Analyzing the current Texas real estate market, the average time to sell a house in Texas is 77 days. Factors like house location, home size, condition, etc. can increase your home’s days on the market.
For an inherited house, the probate process is necessary to legally transfer the property. It typically takes up to 24 months but can be delayed by multiple heirs and disagreements.
To Sell My Inherited House
- How Long Does It Take to Sell? It takes an average time of 9 to 24 months to sell an inherited property, depending on the probate process.
- Taxes to Sell an Inherited Property: You need to pay transfer tax, property tax, and capital gains tax to sell an inherited property.
- Fastest Way to Sell: Selling to a cash buyer is the fastest way to sell your inherited property as is.
Can I Sell an Inherited House in Texas?
Yes, you can sell your inherited house in Texas. Your property must undergo a probate process before you sell it.
What Is a Probate Process?
A probate is a legal validation of a deceased person’s will. Probate helps to distribute the property amongst its heirs and beneficiaries.
You need to submit the owner’s death certificate and proof of ownership during the probate process. After the completion of probate, you have to pay for several expenses such as outstanding mortgages, taxes on the property, and other bills.
An ‘Alienation Clause’ triggers when the ownership of a mortgaged property is transferred to an inheritor. So the inheritor has to pay off the full mortgage.
Almost every inherited property in Texas must undergo a probate process. This can take up to24 months. This period varies state-wise and depends on the number of inheritors and state laws.
Properties Exempted from Undergoing Probate Process
Your property will exempt a probate under the following conditions:
- Texas Transfer-On-Death Deed: The owner can prepare a property deed to automatically transfer the property’s ownership. This deed prevents the property from going under the probate.
- Receive a House in Trust in Texas: As a legal heir, you can inherit a house directly without probate if the owner has placed the home in trust.
How to Sell an Inherited House in Texas?
Selling an inherited house is similar to selling any other property. The best option to sell your house for the most profit is either sell it through a real estate agent or sell it yourself.
1. Hire a Local Real Estate Agent
Real estate agents are well-versed in the market conditions. They market your property to buyers via MLS or other real estate networks to get you the most possible money for your property.
Moreover, agents can also advise you after you start receiving offers. But, agents do charge hefty commissions from 5% to 6%.
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2. Sell For Sale By Owner (FSBO)
You can save on hefty commissions by listing your house for sale by owner. But when selling FSBO, you need to handle the paperwork and closing yourself.
You have full control over your transaction to engage with the buyer and buyer’s agent. Moreover, TX For Sale By Owner sites help you get listed faster, typically within 24 to 48 hours.
Flat Fee MLS companies like Houzeo offer advanced technology to streamline your listing process. Also, Houzeo’s mobile app helps you manage offers and showings at your fingertips.
Alternate Ways to Sell Your Inherited House in Texas
You have other alternatives to sell your inherited home:
- List with a Discount Real Estate Broker:Texas Discount real estate brokersoffer all the services that traditional Realtors do but at discounted rates. You can also opt for aflat rate Realtorto list your home.
- Sell Your Home to an iBuyer:An iBuyer can instantly make a cash offer and help yousell your house quickly. They make offers close to fair market value. However,iBuyershave strict purchase criteria.
- Sell Your House to Cash Buyers:Texas cash companiescan help you sell faster if you have a distressed property. However, cash home buyers typically offer 50% to 70% of the property’s fair market value.
- Sell Your House to a Flipper:You can sell your inherited property to professionalhouse flippers in Texas. They offer up to 70% of thefair market value.
Taxes on Selling an Inherited Property in Texas
Yeet! The Lone Star State does not impose an inheritance tax or estate tax. However, you have to pay taxes while selling an inherited property in Texas.
- Property Tax:The averageproperty taxin Texas is 1.60% of the total sale price of the property.
- Capital Gains Tax:The IRS (Internal Revenue Service) authority levies thecapital gains taxon a stepped-up basis.So, this tax would only apply to the property’s appreciation after it was inherited.
»Capital Gains Exemptions:Know how you can exempt capital gains tax.
Selling a House in Texas with Multiple Inheritors
Multiple inheritors can be close family members like siblings, cousins, or anyone the deceased person chooses. So,selling a house in Texaswith multiple inheritors is a real curve ball.
In such cases, the first step is to agree on selling or buying the property with the other inheritors. So, you can appoint a neutral party (non-beneficiary) as the head person for the sale.
The neutral party will ensure a transparent home sale process. They will ensure a fair distribution of proceeds amongst the inheritors.
What if All Inheritors Don’t Agree to Sell?
If all inheritors do not agree then the property cannot be sold. Chill! If the majority of the inheritors are willing to sell the property they need to go through a probate court.
The inheritors can file a ‘partition action’ lawsuit in the probate court. In such cases, the court enforces the sale. As a result, the inheritors have to divide the proceeds among themselves as per the will.
Let’s Sell Your Inherited House
Selling your inherited house in Texas is a complex and time-consuming process. Your inherited home might remain in probate for up to 24 months. You also have to pay several taxes while selling your inherited home.
To get the best price for your property, we recommend youlist your home on Texas MLS. This provides exposure to your property to buyers and real estate agents.
With aTX Flat Fee MLScompany like Houzeo, you can list your property on the MLS right after the probate. An MLS listing viaHouzeowill give your house maximum exposure, and you may even attractcash offers.
| St. Antonio | Selling Inherited Property in St. Antonio, TX |
| Longview | Selling Inherited Property in Longview, TX |
| Katy | Selling Inherited Property in Katy, TX |
| Houston | Selling Inherited Property in Houston, TX |
| Dallas | Selling Inherited Property in Dallas, TX |
» Selling an Inherited Property with a Mortgage: Learn what to consider and what not when selling an inherited property with a mortgage.
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Frequently Asked Questions
Can you sell a house while in probate in Texas?
No. You can sell your inherited property only after completion of the probate process.
Does Texas have an inheritance tax?
No, Texas does not impose an inheritance tax on properties. However, you need to pay taxes while selling the property.
Is there a time limit on selling inherited property in Texas?
No, there is no time limit to sell an inherited property in Texas. Once the probate process is completed and the legal inheritor is declared, you can sell your inherited property anytime.
How to pay-off the mortgage on inherited property in Texas?
You can pay the mortgage on an inherited asset in multiple ways:
1. You can sell the property and pay-off the debt.
2. Transfer the mortgage along with the ownership of the house in your name.
3. The Texas mortgage lender can foreclose the property if no inheritor pays the debt.
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Selling Inherited Property Texas
