Inheriting a home can come with unexpected expenses that catch many off guard. Even if the plan is to sell the property, significant costs often need to be addressed before seeing any proceeds. Sometimes, the estate will cover these expenses, but if not, the heir is responsible for the upkeep until the home sells. Fronting these costs can be challenging and may not always fit into an heir’s budget. Repairs are one of the major expenses, as getting a home market-ready requires it to meet current health and safety standards. Depending on the previous owner’s maintenance, this can involve substantial work and expense. Taxes also come into play, as inheritances come with a tax burden that varies by state and estate size. When you receive an inheritance, the taxes must be factored into your plan to keep or sell the home. Additionally, if the property has a lien, that debt transfers with the home and becomes your responsibility. Lastly, the ongoing bills, including the mortgage, utilities, property taxes, and upkeep, remain your responsibility until the home is no longer in your possession. While these costs can typically be recouped through the home sale profits, they must be managed in the interim.
source: https://www.expresshomebuyers.com/blog/5-unexpected-challenges-of-inheriting-a-home/
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