Inheriting real estate is rarely as wonderful as it appears in the movies. The responsibilities that come along with this gift can be overwhelming, especially if it is an older property in a state of disrepair. While your loved one or close friend may have had the best of intentions, often the property becomes an emotional and financial burden and is unwanted. If you have inherited a property, here is some important information that you need to know about inheriting real estate in Baltimore.
The Financial Responsibility is Now Yours
One thing you should know about inheriting real estate in Baltimore is that the person who receives the inheritance of real estate is now financially responsible for the property. This includes any outstanding debts attached to the property, including liens. Additionally, you are now responsible for all upkeep. If the property is an investment for rental income you may now also be taking on the duties of being an unwanted landlord, which brings along more responsibilities and demands on your time. You will also owe property taxes and possibly homeowner’s or property owner’s association fees. Often these associations have strict guidelines that must be adhered to regarding the maintenance and appearance of the property.
The Property Needs Repairs
The frequency and expense of repairs begin to increase at a quicker pace as a home gets older. This in turn increases the risks and expenses involved with inheriting real estate in Baltimore that is not new or in pristine condition. Whether your intent is to live in the property or list the property, you should take steps to educate yourself on the condition of the house from the foundation to the top of the roof. You will want to save yourself from catastrophe by hiring a professional inspector to fully understand the task that lay ahead. It is highly recommended that you contact at least three professionals for each type of repair needed. Keeping in mind the costs of holding a property continues on despite the status of the repairs, be certain to get estimates of both the time frame and the total overall cost involved.
Need to Clear out any Personal Property
Inheriting real estate in Baltimore can be a very emotional time and may even make it more difficult or impossible for some to even enter the property. Regrettably, you will need to either remove all of the personal property of the deceased from the property yourself or hire professionals to do so. Depending on the condition of the property, and the tendencies of your benefactor, this could literally mean going through mountains of clutter and decades worth of personal belongings. Delaying the process in order to avoid painful memories can be extremely costly. Delaying needed repairs on the property lowers the value as it continues to deteriorate.
Taxes
Whether or not you believe you will ever personally inherit real estate, it is one of the most common items passed on and the tax implications are something that everyone should have at least a general knowledge about inheriting real estate in Baltimore. Under the Unified Gift and Estate Tax system, the estate tax is based on the value of any property transferred through inheritance, which is calculated based on specific guidelines and includes possible deductions. While often no federal estate tax is owed as the beneficiary, this is not always the case. Every American currently is allowed to inherit up to 11.18 million. You will also want to be certain to investigate gift tax as well. Additionally, there are several states which do have estate taxes, so familiarizing yourself with these laws may be helpful in the future.
Purchasing Other Property
Because you inherit the financial responsibilities along with the property, if you were planning on purchasing your dream home, those plans may have just changed dramatically. One of the major changes may just be in the eyes of your lender when inheriting real estate in Baltimore. Depending on the remainder of the mortgage and any other expenses that are now in your name, your debt to income ratio may now mean you no longer meet the guidelines to qualify for a loan. Additionally, the outlay for repairs is likely to deplete whatever savings you have managed to put together in anticipation of your plans.
Sell to Maryland Home Buyers
For many, holding onto an inheritance of real property is much too time-consuming or simply not financially possible. There is a simple and quick solution that will easily eliminate any concerns about inheriting real estate in Baltimore. Working with Maryland Home Buyers means total convenience, with no property showings or open houses. Just pack what you want and leave the rest behind. Maryland Home Buyers will help you with the paperwork and make the entire process easy, explaining every step along the way. The price that Maryland Home Buyers offers is what you will receive at closing. Just send us a message or call Maryland Home Buyers at (410) 657-2523 to discuss the market value of the property and the options available to you when selling your unwanted inherited property.