Sell an Inherited Home in Pennsylvania
Inheriting a home from a loved one can be a mixed blessing. On one hand, you may feel honored and grateful to receive such a valuable asset. On the other hand, you may face some challenges and expenses when it comes to selling the inherited home. In this article, we will guide you through the process of selling an inherited home in Pennsylvania, and offer some tips to make it easier and faster.
Step 1: Go Through the Probate Process
The first step to sell an inherited home in Pennsylvania is to go through the probate process. Probate is a legal procedure that validates the will of the deceased person and transfers the ownership of the property to the heirs.
To start the probate process, you need to file a petition with the Register of Wills in the county where the deceased person lived. You also need to submit a copy of the death certificate, the original will (if there is one), and an inventory of the estate assets. The Register of Wills will appoint an executor or administrator to handle the estate affairs. The executor or administrator is responsible for paying off any debts, taxes, and expenses of the estate, as well as distributing the assets to the heirs according to the will or the state law.
If the deceased person had a spouse, the probate process may be simplified or avoided. In Pennsylvania, a surviving spouse has the right to inherit the entire estate of the deceased spouse, unless the will states otherwise
Step 2: Prepare the Property for Sale
Once you have the legal authority to sell the inherited home, you need to prepare the property for sale. This may involve some tasks such as:
● Cleaning, decluttering, and staging the home to make it more appealing to buyers.
● Making any necessary repairs or improvements to increase the value and functionality of the home.
● Hiring a real estate agent to market and list the home or find a cash home buyer.
● Negotiating with potential buyers and accepting the best offer.
Preparing the property for sale can be costly and time-consuming, especially if the inherited home is in poor condition or has an outdated style. You may also have to deal with some emotional issues, such as letting go of the memories and attachments to the home.
Step 3: Pay the Taxes and Fees
Selling an inherited home in Pennsylvania is not tax-free. You may have to pay some taxes and fees, such as:
● Transfer tax: This is a tax imposed by the state and the local government on the transfer of real estate. The transfer tax rate in Pennsylvania is 2%, which is split equally between the buyer and the seller. However, some counties and municipalities may charge an additional transfer tax, ranging from 0.5% to 4%. You can check the transfer tax rate for your location here. Pennsylvania Deed Transfer Tax (2022 Rates by County) (anytimeestimate.com)
● Property taxes: This is a tax levied by the county, school district, and municipality on the value of the property. The property tax rate varies by location. You are responsible for paying the property tax until the date of the sale, and the buyer is responsible for paying the property tax from the date of the sale.
● Inheritance tax is imposed as a percentage of the value of a decedent's estate transferred to beneficiaries by will, heirs by intestacy and transferees by operation of law. The tax rate varies depending on the relationship of the heir to the decedent.
○ The rates for Pennsylvania inheritance tax are as follows:
○ 0 percent on transfers to a surviving spouse or to a parent from a child aged 21 or younger;
○ 4.5 percent on transfers to direct descendants and lineal heirs;
○ 12 percent on transfers to siblings; and
○ 15 percent on transfers to other heirs, except charitable organizations, exempt institutions and government entities exempt from tax.
○ Property owned jointly between spouses is exempt from inheritance tax.
Step 4: Distribute the Proceeds
The final step to sell an inherited home in Pennsylvania is to distribute the proceeds from the sale to the heirs. The distribution of the proceeds depends on the terms of the will or the state law. If the will specifies how the proceeds should be divided among the heirs, you need to follow the will. If the will does not specify or there is no will, you need to follow the state law.
Selling an inherited home in Pennsylvania can be a complicated and lengthy process, but it can also be a rewarding and profitable one. By following the steps above, you can sell your inherited home in a legal and efficient way, and enjoy the benefits of your inheritance. However, if you want to avoid the hassle and expense of selling an inherited home, you may consider selling it to a cash buyer. A cash buyer is someone who can buy your home quickly and easily, without any contingencies, commissions, or closing costs. A cash buyer will buy your home as-is, regardless of its condition or situation. A cash buyer can also help you with the probate process and the taxes and fees, and offer you a fair and competitive price for your home. If you are interested in selling your inherited home to a cash buyer, you can contact the Birchwood Group Inc., a reputable and reliable cash buyer in Pennsylvania. They can help you sell your inherited home fast and hassle-free, and give you cash in as little as a few weeks.