If you are now the trustee of a trust and an inherited home is one of the assets in this trust, as the trustee or manager of this property, you have a duty to act in the beneficiaries’ best interests. As the trustee, you also have legal title to the assets in this trust and your power includes the buying and selling of this home. When there is a home that’s included in a trust, the trustee may find it necessary to sell this property and divide the proceeds among the beneficiaries. There are many reasons why this is the most ideal option that will benefit everyone.
This may be a home with some structural issues, water or mold damage; it could be a distressed property that has fallen into disrepair; the house may be old with expensive upkeep, or it may be a rental property, and the beneficiaries don’t want the financial obligations or legal responsibilities that come with it. There could be a number of reasons.
Before selling this home with a realtor, however, which some people might think is the best solution, you have to understand the total costs involved and how much money you will need for commissions, a variety of fees and the closing costs. A real estate lawyer will also charge you quite a lot for their services if they are needed to navigate this transaction. If an intended buyer of this inherited property has an attorney, it would probably be in your best interests to have your own representation, and a real estate lawyer could charge you anywhere from $150 to $500 an hour.
The closing costs, which are an assortment of fees (title insurance, appraisal, etc.) and other services that are carried out during the closing, are separate from the agent commissions and will typically range between 1% and 3% of the sales price. There are still quite a few other fees, that can include title fees, transfer fees, and escrow fees. In addition, depending on when you sell the property, you may be responsible for paying the taxes and other dues from a previous year.
There are also home repairs and maintenance you’ll have to focus on when you sell the home through a realtor, and these include things like fixing the roof, plumbing, electrical and the HVAC system. Along with that, you may have to remodel cabinets and flooring and do more than a little painting.
That’s not all.
Regular or monthly payments on things such as utility bills, insurance, lawn maintenance and home security may also be added costs, and this is while you’re still waiting for the property to sell. These expenses will really add up!
When you want to find a buyer for this inherited home and sell it as fast as possible, sell the home as-is and also sell it for cash. This is the best way to sell a home when you are the trustee of a trust, and this will provide a more desirable outcome.
What Does Selling As-Is Mean?
To sell a home as-is means that you are selling the property in its current condition, with the understanding that no repairs will be made. You can also take the time to decide what to do with all the furniture and belongings in the home; which can be quite an overwhelming task. Depending on how you would like to handle this, if you wish to leave everything in the home, you can write in the contract that you would like to do so. Or, the beneficiaries can always take any personal belongings they’d like to keep. There’s no pressure from a realtor when you are selling a home as-is, while traditionally they would want the home empty and cleaned, from top to bottom, before you close.
Take a look at some other advantages of selling a home as-is and why a cash purchase is great when you want to sell this home as the trustee of a trust.
Fast Home Offers
Did you know that you could get an instant cash offer and find out how much you can get for this home right away by selling the home as-is? A company that specializes in buying homes, no matter the condition, can make a cash offer immediately. This is not only cost-effective, but also convenient and saves you a great deal of time as well.
Fast Home Sales
Another big advantage of selling a home as-is means a fast and speedy process. When you want to sell this inherited house now, by working with an all-cash buyer, you are typically able to close within a few days.
No Home Staging
Along with not having to do any expensive and time-consuming home repairs, you also won’t have to worry about staging this home to make it look picture perfect for online property photos and for any walkthroughs. This is especially important, because appearance is a critical part of selling a home through a realtor and dealing with the real estate process.
No Real Estate Commissions
In addition to saving money on those home repairs, you will also get to save money on realtor’s commissions when you are selling this home. A realtor can charge you as much as 6% in commissions and with a home valued at $300,000 for instance, that comes to $18,000. Also, in some states, home sellers are responsible for paying the real estate commission of both the agent representing them, and also the agent representing whoever buys their home. If you opt to sell this home with a realtor, this is less money that the beneficiaries will have in their pockets.
And finally, there is less stress. Isn’t that what you need? When you use the services of a realtor, you’re not really in control of this sale, and there’s always the risk that something will go wrong, and at the last minute. The sale could actually fall through.
This rarely happens when you sell a home as-is, and to a cash buyer. They don’t need lender financing to pay for this home and often have the money already lined up; which means they can give you the cash for this home right away.
When you are the trustee of a trust and a home is an inherited property in this trust, selling the home may be the best option that works for everyone. If you want to sell this property right away, however, this may not always work in your favor when you’re not selling the property as-is, and this isn’t an all-cash deal. If you are choosing to sell this home through a realtor, there will be huge amounts of costs involved and a long, drawn-out sales process at the same time.
By selling this inherited home as-is and selling it for cash, this will provide a more desirable outcome because there are no hassles involved and no costly fees. You will get your cash fast and have a fair offer for the property within days. If you’re looking for a simpler and more stress-free solution, this is the best way to make selling an inherited home so much easier.