Real estate markets are taking a turn for the better for home sellers in North Colorado. The market is increasingly getting competitive, prices are going up and the average number of days on the market for properties is on the decline. In fact, as per the projections by the Everitt Real Estate Center at Colorado State University, home prices will likely go up eight percent in 2016.
While all these are the tell-tale signs of a seller’s market, there is a particular segment of home sellers that face unique challenges despite market conditions being on their side. These are sellers looking to sell inherited properties. Here at White Sand Property Solutions, we work with the sellers from this segment all the time, so we know what challenges they come across and how they can overcome these challenges.
If you are planning to sell an inherited property you need to take into consideration some legal complications. While there are many such considerations to make, in this blog we will go over the ones that concern the process of selling an inherited property with siblings in Colorado.
Probate Laws are State-Specific
It’s obviously a legal process that governs the transfer of title of assets from the decedent to his or her devisees heirs. You need to keep in mind that probate laws are state specific, so when selling an inherited property in Colorado, you need to adhere to the laws prevailing in this state.
In Colorado there are three types of probates – Small estates (under $50,000 and no real property), uncontested estates (informal), and Contested estates and invalid or questionable wills (“formal”). You should consult with a qualified real estate lawyer to address the issues related to different types of probates, particularly if it is a contested estate or invalid or questionable will. In certain cases, you may have to wait for the regular probate process to conclude in the court before you can put the property on the market.
Reaching an agreement
It’s very easy to sell an inherited property when all the siblings agree with your decision. But if you want to sell and other heirs or recipients keep the property, than the process becomes a bit complicated. You can offer to sell your interest in the property to them. Besides, you can reach an agreement where you divide the assets in the way that you can sell your share independently, while others are able to retain theirs.
What taxes do you owe?
The tax is determined on the basis of the gains from the sales proceeds. The gain is the difference between the sales price and the value of the property on the day the person who willed it to you died. When several siblings inherit equal shares in a property, they divide the gain equally and each has to pay taxes on their gains.
You should work with experienced professionals when selling an inherited property. Keep in mind that regular real estate agents or lawyers may not be familiar with the process of selling an inherited property in Colorado.