The average home value in Illinois was around $230,827 in the first quarter of 2022, and homes took about 41 days to sell.
Selling a house in just over a month isn’t too bad, but some homeowners don’t have this luck. Instead, they face challenges when selling. The most common challenge is when a home needs work.
If you recently inherited a home that needs work, you might have trouble selling it. So, what do you do with a house that needs work if you don’t want to live there?
You could sell the house for cash!
If you’re interested in learning how to do this, you’re in the right place.
This guide answers all your questions about the process and can help you request a cash offer from home buyers in Chicago. If you’re ready to learn more, continue reading this guide.
Research the Home Title and Its Liens
Every house has a title, and the title contains vital details about the home, including the liens it has. A lien is a legal tool lenders use when they have a stake in a property.
Contractors and other people can also place liens on homes if the homeowner owes them money. When a home has liens, the homeowner generally pays these when selling the home.
Therefore, you might want to start the process by researching the home’s title to see if it has liens. You might discover that the relative who gave you the house still owed money on it. You might find other liens, too.
If you sell your home to a traditional buyer, you’ll be responsible for the liens. If you don’t want to pay the liens, you could look for a cash home buyer. Cash home buyers typically pay the liens themselves.
You can research this by running a title search. You may need to hire a lawyer or title company to complete this step, but it’s a vital step to take before proceeding.
Talk to Your Tax Expert About Potential Tax Liability
Next, it might be wise to speak to your tax expert about the potential tax implications of inheriting a home and selling it.
You might have to pay estate taxes when you acquire the house, but you might have to pay capital gain taxes when selling it. A tax expert can help you determine your tax liability for the transaction.
It’s smart to understand this as it can help you proceed with the best method for this newly inherited home you acquired.
Complete Any Legal Steps Necessary for the Estate
Receiving an inherited house is quite a gift, but the process requires legal steps. The legal steps you need depend on several things, including the following:
- Where you live
- The estate plan
- The beneficiaries
- Liens on the property
When people create their estate plans, they might do so in a way that lets the beneficiaries avoid probate court. If this is the case, transferring the title from your relative to you is simple and fast.
If the estate must go through probate court, it will take more time. You can’t sell anything you inherit, including a house, until the court finalizes everything.
You can speak with an estate planning attorney to learn more about the necessary legal steps you need to take before selling the inherited home.
Consider the Home’s Condition and Value
The next step is to consider the home’s condition and value. An immaculate home is much easier to sell than a run-down house that needs work.
Additionally, you can consider the home’s location. You’ll face fewer challenges selling it if it’s in a great area. You could contact an appraiser to learn more about its value if you have questions.
If the home needs work, you have several options. The two main options are fixing it up and selling it afterward or selling it as-is.
Selling a home as-is might present some challenges, though. Likewise, fixing the home requires an investment.
Evaluate Your Options
So, what are all the options you can consider when you’re in this position? Here are the main ones:
Keep It and Rent It Out
If you don’t want to live in it but want to keep it, you can rent it out to a tenant. The benefit is that this option provides a way to generate income.
The downside is that it adds a lot of responsibilities to your life. Are you ready to be a landlord? If not, this might not be the best choice.
Sell It As-Is Through a Real Estate Agency
Next, you could choose a real estate agent to sell your home. You could list it as an as-is property, which means you aren’t willing to do any work. You’ll have a limited buyer pool with this method, though.
Fix It Up and Sell It
If you have some extra cash to use, you could invest it in the house. One step you might need to complete is painting the house. If so, make sure you choose neutral colors, as that’s what buyers want.
Of course, you’ll sell it for a higher price when handling it this way. But, there’s a downside, too, which is the costs of renovations. You might need a hefty investment to prepare the home for what buyers today want.
Sell It As-Is to a Cash Buyer
Many people turn to cash buyers when they’re unsure about what to do with inherited homes that need work. A cash buyer makes the sale simple by offering you money for the home as-is.
They won’t require repairs or any other contingencies. Additionally, they’ll take the liens with the house, eliminating the need for you to pay them.
Call a Cash Home Buyer
If you decide to sell your home in Chicago to a cash buyer, you’ll need to learn the steps. The first step is contacting a cash home buyer.
The cash buyer will ask you some questions about the house before presenting an offer. Then, within minutes, you’ll have an offer for the home.
The cash buyer bases the offer amount on your home’s current value, location, and liens. They’ll also factor in the amount of work it needs versus the approximate value after completing the work.
Learn the Benefits
Before proceeding with this route, you might want to learn the benefits of selling a house for cash. Here are a few:
It’s Fast
First, the process is fast. You can receive an offer in only seven minutes. Once you accept the offer, you’ll likely close within two weeks.
You won’t have to wait for inspections to occur or an appraisal. You also won’t have to wait for the right buyer to come along. Cash buyers will purchase any home.
It’s Guaranteed
Next, it’s a guaranteed sale. The deal won’t fall through if the title has flaws or the home needs more work than the buyer expected. If you accept the offer, the sale will go through.
There Are No Contingencies
Additionally, there are no contingencies with a cash sale. The buyer purchases the house as-is and won’t ask for a thing. They’ll factor all the work it needs into the offer instead of requiring that you do things.
You also won’t have to pay a commission or any other expenses. You keep all the money from the sale.
Study the Offer and Respond to It
When you receive the offer, keep all this information in mind as you review it. The amount won’t be as much as you could get if you fixed up the house and sold it, but a cash sale offers so many other benefits.
If you decide you don’t want to sell the house, there are no hard feelings. You can just let the cash buyer know that you’d rather not sell it.
However, if you’re ready to accept the offer, let them know, and they’ll start the paperwork. You’ll get your check from the sale sooner if you let them know right away.
Selling a House for Cash Is Simple and Fast
While you might have some legal steps to complete before selling a house for cash, the process is simple. You’ll benefit by choosing this option for selling an inherited home, as it offers a fast way to liquidate.
Are you ready to ask for a cash offer?
If so, contact us. We buy houses in Chicago and many other areas and would love to give you an offer. We make the process simple and provide offers in seven minutes.
Call us today or visit our site to learn more!