5 tips to inheriting a house in Oklahoma City

5 tips to inheriting a house in Oklahoma City

Inheriting a house doesn’t happen every day. It can be a complicated and confusing process, not to mention an emotional one.

When you inherit a property, you aren’t just dealing with the inherited assets themselves. You’ll need to deal with the finances and paperwork when inheriting a house. Here are 5 tips to help you manage inheriting a house, especially if you’re planning on selling.

1. What is probate?

You’ll likely need to go through probate, especially if there are multiple heirs.  

Probate is the legal process where an executor is assigned to the estate and the inheritors are identified. Executors and inheritors are usually named in the will—if there isn’t a will present, an administrator will be appointed to act as executor.

In cases where there is no will, the estate is in a condition called intestate. For intestate estates, inherited assets are divided among surviving family members, including spouses, children, and relatives. 

2. Do you need to make mortgage payments on an inherited house? 

When you inherit a house, you will become responsible for the mortgage. You may have to deal with a: 

• Mortgage loan: You may be inheriting a house that isn’t fully paid off. If that’s the case, you’ll need to take over making mortgage payments. To do this, you should reach out to the lender to find out when payments are due and how to make them. You will need to do this as soon as possible in order to avoid paying late fees.  

• Upside-down mortgage: Also known as an “underwater” mortgage, this means there is more owed than there is value in the property. If this happens, you should get an appraisal first to be sure that the value is correct. If you do have an upside-down mortgage, you will need to work with the lender to figure out what your options are.   

• Reverse mortgage: You may have inherited an Oklahoma City house that has a reverse mortgage. This happens when a senior homeowner takes out a loan against the equity they already have in the house. While there aren’t monthly payments, the loan needs to be repaid if the homeowner dies, moves out, or sells the house. If you don’t plan on selling the house you inherit, you could consider refinancing, which will mean taking out a new loan in your name. You may not need to pay off the debt if the previous homeowner bought credit insurance.  

3. Do you need to transfer insurance, utilities, and services?

The previous homeowners insurance doesn’t automatically transfer to the new owner of an inherited property, so you will need to either start a new policy in your own name or take ownership of the existing policy. To transfer ownership, you may need to provide documentation like a death certificate.

If you don’t plan on living in the inherited house, you may want to get a vacant property policy because ownership of unattended property carries risk. This insures houses that are uninhabited for more than a month or two, and can cover various damages, vandalism, and theft.

Another thing to keep in mind is to ensure that utilities aren’t shut off. This includes: 

• Electricity 

• Water 

• Trash 

Make sure to have all mail from the inherited property forwarded to your current address. 

4. Will you have to pay taxes on the inherited house? 

Thankfully, you don’t have to pay an inheritance tax in Oklahoma. But keep in mind that you may still have to pay: 

• Property tax: This is an inherited tax determined by the local government, at the city or state level. Any back taxes that are owed will need to be paid immediately. In every state, the local governing body can sell the house in order to get taxes owed if they aren’t paid. You’ll need to find out how much property tax you owe and how to pay it.  

• Capital gains tax: A capital gains tax on inherited property means that your property is taxed when you sell it. The tax you pay is based on the appreciation of the home’s value from the time it was inherited to the time it was sold.

5. Do you need to make repairs on the house you inherited? 

One of the most common challenges when you inherit a house is that the house may need maintenance. Homes require routine maintenance, and issues will build up over time with any property. If you inherit a house with a lot of issues, you will need to choose whether it’s best to fix these issues prior to your home sale or try to sell your house “as is.” 

Overdue maintenance can include things like: 

• Peeling paint 

• Leaky roof 

• Outdated electrical system 

• Plumbing problems 

• Foundation issues 

• HVAC problems 

The cost of home repair projects can add up pretty quickly, so you may need to determine which projects are vital to your home sale, or which are more cost-effective.

Sell your inherited house with We Buy Ugly Houses^®.

When you want to sell an inherited property, you can do it the easy way with We Buy Ugly Houses^® in Oklahoma City.

We’re not just your neighborhood property specialists—we’re also your neighbors, which gives us intimate knowledge of the local housing market and lets you rest easy knowing we’ve got your back. With our 3-step home-buying process, you can go from consultation to closing quickly, sometimes in as little as 3 weeks!

Since you can sell your house “as is,” you don’t need to make any repairs for us to be interested. In fact, you don’t even need to clean before we come over! We even give you the option to leave unwanted items behind and we will take care of those, free of charge.  

We pay all typical closing costs, and we never charge any commissions or hidden fees. Our offers are typically below market value in exchange for speed and convenience.

Getting a consultation is completely free. Reach out to us today to learn more and get your home sale started!