Inherited Property

When someone inherits a property there was either a will in place assigning the new owner or it went through probate. If the deceased left a will they could have either willed the property to a person or assigned an executor to their estate to do with the property and proceeds as the deceased wished. There are also properties that are inherited that went or must go through probate in order for the new owner to sell. When it comes to inherited property it can become very complicated.

When there is a will in place the new owner can do with the property as he/she wishes. Keep in mind that when a property is inherited someone passed away in order for them to become the new owner. This is always a touchy subject. When inquiring to purchase the property the tone in the seller’s voice will tell you how attached they are to the property. You will run into two extremes. The new owner wants nothing to do with the property because it reminds them too much of the deceased or they are having a hard time selling because it holds too much sentimental value. This also determines the price that they are willing to accept. You may be able to negotiate a better price with the earlier example opposed to the latter. If the new owner is under age to enter into a contract there guardian can sign for them but usually a judge is assigned to make sure it is a fair price. This is one of many examples where it can get a bit more involved.

When the deceased did not leave a will the property must go through probate to determine who the new owner of the property will be. This is simple if the deceased only married once and only had children in that marriage. If the deceased had multiple marriages and just as many children it becomes complicated. Either way the same two extremes that exit in the example above exist here. The main difference here is that you may have to convince siblings to work together in order to reach an agreement. Usually siblings want more for the property because they have to divide the proceeds.

The key to purchasing inherited property is to be the solution. If the person inheriting the property is not an investor they may not be ready to take on another property. A new property requires more funds for maintenance, taxes, utilities, etc. In most cases these properties usually also require some form of rehab/remodel. If you can present a reasonable offer, making sure it fits your business model; the new owner will consider your offer. Again, making sure it is a win-win situation.