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Inheriting a home may seem like a good thing but when an executor and other heirs are a recipient of such an inheritance, there are many issues to consider.  Below is a list.

1.  Disposition.  As the executor, do you and the heirs want to keep the home, rent the home, or sell the home?  Selling is often the best solution especially when there are monies owed such as medical bills, taxes, insurance, etc.  The proceeds from the sell can go to pay for these bills with the remainder of the funds being divided among all the heirs. 
2. Property Management.  If the decision is to rent the home, the issue of who is going to manage the property is the primary question.  First of all, would you want to be partners with the remainder of the heirs?  What happens when one of the heirs become divorced, files for bankruptcy or have other issues?  Lastly, who exactly is going to maintain the property and keep up with the real estate market, especially if the executor does not work in the real estate field?
3. Selling the Property.  How are you going to determine the value of the property if you do decide to sell or if another heir wants to purchase the home?  If an heir wants to purchase the home, then an executor needs to be fair in regards to the remainder of the heirs.  To get an objective opinion, two appraisals need to be performed.  They should be within 5% of each other.  This will determine the fair market value of the home and the listing price.  Any heir can have the right of first refusal to match the highest offer. 
4. Maintenance.  In selling a property or keeping it as an investment means that repairs and renovations will be needed.  Failure to properly maintain a property can result in losses to the heirs.
5. Furnished or unfurnished.  What to do with the personal property in the home?  In an estate situation there is often years of accumulation that needs to be thinned out.  In selling the home, purging will help with the sale/staging of the home.  But if you decide to rent the home and perhaps eventually sale, the remainder of the items will need to be disposed of.  Often people have estate auctions and donate any remaining items to non-profit organizations.

While inheriting a home means the death of a loved one and can be difficult for some of the heirs, it is a necessary function of the executor to attend to the disposition in the best interest of all the heirs. 

Master Brokers | December 2018 | 828-726-9180