Inheriting Real Estate

If you have acquired a client with inheriting real estate, the appraisal of the property is the first thing that needs to be done. After the appraisal and price determination, the entire process of selling the property can be done smoothly.

As a real estate agent, you must be well aware of the entire appraisal procedure. Before any property is sold it needs to be appraised properly. Appraisal gives you a detailed analysis or the condition and the value of a particular real estate. When it comes to appraising an inherited property, things can be tricky. In inheritance real estate, the appraisal must be done and recorded at the time of the owner’s death-not at the time of load application. The purpose of the appraisal is to access the value of the entire property and its belongings. This valuation is then divided into the beneficiaries.

Appraiser assumptions

Often, it is seen that when the loan application is sent to a bank and an appraiser has to go in and evaluate the property’s worth, the entire building is either renovated or new belongings have been added. At this point the appraiser needs to make certain assumptions.
Many appraisers have a good idea of what they are looking at. This assuming right comes with experience. For example, it is easy for an appraiser to know the price of a 1950s; if the owner died in 1990, he will come up with its price in the 1990. Similarly, he will also look at the additions made and ask for what was present before that to make a accurate guess

Important decisions while inheriting real estate

When a property is inherited an importation decision needs to be made. This decision is whether to sell the property or to keep it. Often an inherited property is promptly sold because there are more than one beneficiaries involved. Or other times the due to the taxes owned to IRS, selling of the real estate needs to be done.
Acquiring a property and then selling it can be intricate. All the existing mortgages will have to be paid off. Also, the lender might ask for a repayment after the death of the buyer. In these cases the property will have to be sold. At times using the 1031 exchange can be helpful. By applying this exchange funds can be used to invest in some other property immediately.
Whether or not the real estate is to be sold, you must at once advice your client to get an appraisal done for the property.

Be very discreet

It is often the little details that matter. As a real estate agent, you need to be very discreet while dealing with inheritance clients. You need to look at the insurance. Moreover, getting the right appraiser for your client can also help them assign the right value to their property.

Be empathetic

An inheriting real estate client can be in troubled waters. Since they would be coping with the loss of their loved one, you need to be empathetic to them. They also might have memories associated to the property so let them take their time in making a decision.