Inherited homes in Arizona may seem like a good steady source of income when they come in, but there are still lots you need to get sorted first before you go around trying to sell your inherited Phoenix home.
Lucky for you, the Arizona market is quick to adapt and even houses in probate can be sold after going through the proper legal processes. Finding out what you’ll need to do will be much smoother than you initially expected.
We’ve compiled a quick list of what to do once you’ve come into your inherited Arizona home. Check them out below to get started:
Make sure your mortgage is settled
This is important if you plan to sell the property immediately or rent it out. Some inherited properties do come with a mortgage you have to pay, and it’s crucial for you to get in contact with either the lender or the previous owner to find out how much needs to be paid.
Some lenders let you assume the mortgage as is, but others will require you to arrange for a repackaged loan with them. Set up a meeting and take as many notes as you can so you don’t miss out on any payments.
Find out if you have to go through probate
If your property costs only around $75,000 in personal property and $100,000 in real property, this is good news for you! According to Arizona law, you can skip the probate process entirely because your properties will be classified as small estates. You can even have an executor handle them with no court supervision.
Here are the kinds of probate you can go through otherwise:
- Formal Probate: You could expect a few appearances in court.
- Informal Probate: You might need to attend one court hearing with minimal supervision after that.
- Supervised Probate: A court judge will have to oversee the entire process.
Be wary of real estate sharks
Expect that coming into a sudden estate means that real estate sharks could come knocking on your door. These are companies or individuals looking to make a quick buck from people who don’t know what to do with their property, and they could convince them to sell the property to them for an unfair price.
We don’t mean you should turn all offers down, especially if you need the money. However, exercise caution when dealing with these people and always ask for a second opinion when they’re presenting their offers to you.
Find out if you need to hang onto the investment
The investment is only as good as its manager, and that’s you! Assess your property before immediately deciding to let go of it. Is it located in an ideal area? How much are other properties around it selling for?
All of these questions are important to consider while deciding what to do with your property. You can also have the property appraised by either a home inspector or a real estate agent so you have a better idea of how good of an investment it is.
Get your taxes in order
Although you don’t need to go through estate tax or inheritance tax in Arizona, be aware of everything else that needs to be in order:
- Federal estate tax return: Individual assets that exceed $12.06 million (for individuals) and $24.12 million (for couples) qualify for this. Take note that these values need to exceed a gross asset and higher taxable gift value of the above due 9 months after the owner’s death. A 6 month extension can happen before the 9 month period is up.
- Final individual federal and state income tax returns: Due April 15 the year after the owner’s death.
- Federal estate/trust income tax return: Due on tax day of the year after the owner’s death.
Sell to a professional home buyer!
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All you have to do is fill up the form on our homepage, receive a fair cash offer, and move on with your timeline. Get your offer today and fill up the quick, easy form!
