Selling inherited property
Millennials are currently on the receiving end of the greatest wealth transfer in American history — $68 trillion by 2030. Much of that wealth is in the form of property, and more than 75% of parents plan to leave their home to their children. Yet, 70% of those who expect to inherit a home from their parents plan to sell. Here are a few reasons why younger generations are choosing to let go of inherited property.
Financial Motivation
Listing a likely mortgage-free property might be too good to pass up, despite any sentimental value. Beneficiaries can use the proceeds to secure their own finances or boost retirement savings.
Debt Relief
Millennials tend to carry more debt, making cash appealing. Recent studies indicate 60% of Americans are living paycheck to paycheck. That number for millennials is 73%.
Carrying Costs
Insurance, taxes, repairs, and upkeep can make carrying inherited property difficult.
Buying Out Stakeholders
Buying out other stakeholders could require financing, and if home prices or mortgage rates are high, it can become impractical. However, options are available, such as probate loans or cash-out refinancing. A probate loan borrows against the value of the estate with a cash advance from a lender. A cash-out refinance allows borrowers to withdraw a lump sum from the built-up equity in an inherited home. Cash-out lenders typically require 20% equity in the property.
The Vacation Home Exception
Vacation homes in desirable locations seem to be an exception, as they are more likely to be kept by heirs for at least a few years.
What About the Taxes on Inherited Property?
Recent changes in the tax basis of inherited property make it critical to consult an attorney knowledgeable in elder law and estate planning for more information.
The Benefits of a Final Walkthrough
The final walkthrough is a critical step in the home-buying process, providing you with the opportunity to ensure everything is in order before closing. If a problem is found, it's essential to address it promptly and properly.
Document Everything
Make a detailed list of any concerns you discover. Take photos or videos as visual evidence.
Request Repair or Credit
Depending on the issue, you may be able to ask the seller to make repairs. If not, you can request a credit at closing to cover the cost of handling the repairs yourself.
Negotiate With the Seller
If the problems are significant, your real estate agent can facilitate negotiations with the seller to find a mutually acceptable resolution.
Remember, collaboration with your agent is crucial in resolving any issues that are discovered during the final walkthrough.
Fall Breeze & Autumn Leaves Home Maintenance Tips
Whether you're doing general maintenance or planning to put your house on the market this fall, consider these strategies to ensure your property is safe and inviting.
Exterior Maintenance
- Clear gutters and downspouts of debris.
- Prune branches away from the house.
- Inspect the roof for leaks and missing, loose, or damaged shingles.
- Flush sprinkler system.
Interior and Safety Checks
- Reversethe ceiling fans to rotate clockwise.
- Check the fire extinguisher expiration date.
- Change batteries in smoke and carbon monoxide detectors.
System Maintenance
- Flush water heater.
- Have the HVAC system serviced.
Buying a Property With Siblings
Whether you're purchasing an income property or a shared vacation home, siblings can make great real estate purchasing partners. Consider these steps to make sure your investments — and your relationships — stay solid.
Prioritize What's Important
Get on the same page about what you're looking for in a house, and have realistic conversations about each person's financial contributions.
Seek Out Professionals
An experienced real estate agent should be your first contact. Your agent can connect you with attorneys, lending professionals, and financial advisers to ensure all aspects of the process are covered.
Create an Exit Strategy
Since no one can predict the future, it's important to engage an attorney to draw up contingency plans.
Are 3D-Printed Houses Right Around the Corner?
If you think 3D-printed houses are futuristic, think again. As this technology evolves and becomes more widely adopted, 3D-printed houses have the potential to significantly increase low-cost housing availability.
Speed and Efficiency
When it comes to using 3D-printing technology as a construction method, one distinct advantage is speed. In fact, large-scale 3D printers can fabricate a small house in a matter of weeks. This efficient process is a staggering departure from the months it can take to build a house conventionally and may be helpful in meeting affordable housing demands for first-time buyers.
Cost Reduction and Accessibility
Besides being eco-friendly, using 3D-printing technology can also reduce construction costs. Printing a home with meticulous precision requires fewer materials, which minimizes expenses and maximizes the potential to make homeownership more accessible to a broader range of would-be buyers.