How to Manage an Inherited Property with Your Siblings
Getting home from someone in your family can be a true blessing, a possible solution to your housing problems. However, this gift comes with specific responsibilities, especially if you have a sibling to share this property with. It’s natural for brothers and sisters not to agree on everything, so dealing with an inherited house or some other kind of property may cause some issues. But, if you are ready for this step, you can avoid many misunderstandings. This article will help you manage an inherited property with your siblings and ensure this process is smooth and enjoyable for everyone involved.
Have a meeting first
It is essential to be honest and communicate openly with all the stakeholders involved. You and your siblings should meet somewhere relaxing and pleasant and talk freely about what you should do with the property. Communication and sharing opinions are critical here, as this is usually not about any property. Most times, people are emotionally attached to the house, making the process a bit more complicated. Talk openly about everything, and most importantly, give it some time to process everything. Allowing some time to think about everything can be a great way to find the best solution for everyone.
Get together and decide what the best solution for this situation is.
Decide on a goal
After some consideration, you should be able to decide on what to do with the property. All the siblings will have to agree on whether you should sell, rent or keep the property. Each of these solutions includes different steps, so it’s vital to decide on the main goal of the process.
The common scenarios
These are the most common scenarios you can go through after inheriting a property with your siblings. Here’s what you can do in each of the situations.
Buyout
If some of you want to sell and others don’t, there’s the buyout option. The party interested in keeping the property can buy the share of the other stakeholder. It’s essential to have a fair, objective appraisal of the property’s value. Once the actual value is determined, you can pay the other sibling their part and have the property in your name. In general, typical lenders won’t go for this kind of refinancing, but you can try with a short-term loan from a hard money lender. These loans are less strict and faster to get – great for situations like this.
Moving into an inherited home
If you’re the one who wants to keep the property and move in – make sure you prepare well for this step. Before you start packing and getting ready for the big day, check if the house needs any repairs and remodeling. Dealing with issues before the move is much simpler and faster, so you can truly enjoy the home after you move in. Then, handle the moving process. State to State Move experts recommend listing your moving tasks on time so you can follow that checklist and make sure you don’t’ forget anything. Scheduling your move earlier will give you enough time to declutter your old home, pack safely and deal with all the paperwork for moving into your inherited house.
Joint tenancy
All the siblings can be owners of the house. Here we have two main structures – tenancy in common and joint tenancy. Both have pros and cons, so it’s best to consult a professional to help you decide on the best solution for you. Letting everyone own the property is excellent if you choose to rent it or use it together as a vacation home.
Selling the property
Another common way to manage an inherited property with your sibling is selling and sharing the profits. A professional appraisal of the property’s value is crucial here so that you can avoid conflicts and other issues. Also, don’t forget to check if you need to pay the capital gains tax – something you need to pay if the property’s value has increased since the time you inherited it.
Selling the house is one of the ways to manage an inherited property with your siblings.
Assign roles
Whichever way you deal with the property, make sure you assign the roles in the process. If there are a couple of siblings involved, see who will be in charge of the legal matters, maintaining the property, contacting the agent, etc. Everyone should participate so you can reach the goal faster and easier.
Have everything on paper
Dealing with such matters is never easy when the other party is someone you love. However, this is a business deal, so be sure to have all agreements documented on paper. This is a simple way to avoid misunderstanding and potential conflicts.
Let professionals help you out
It’s okay to feel puzzled if you don’t have much experience with inheritance, selling, buying, and moving house. Luckily, professionals can help you out. Consult an experienced lawyer, real estate agent, moving team, and others to guide you through the process and make it as simple as possible.
Selling, renting, remodeling – hire experts to help you go through the process.
Avoid conflicts at all costs
Nothing matters more than family. Inheritance is, unfortunately, the cause of family conflicts, which you should avoid at all costs. Patience and understanding is the key to a successful agreement. Here is how you can manage an inherited property with your sibling without any conflicts:
• Be honest and transparent about everything – express your wishes, concerns, and needs openly to other parties. Encourage them to do the same so that you can reach an agreement faster;
• Don’t wait for too long – if the process lasts for too long, it will increase the chances for disagreement, impatience, etc. Try to be realistic with the time frame and try to settle everything on time;
• Be flexible – it’s natural for people to disagree on certain things, so we advise patience, flexibility, and compromise to ensure minimum conflict and maximum efficiency.
Dealing with a family property comes with a lot of sentimental value and emotions. That’s why it’s crucial to be extra careful when trying to manage an inherited property with your siblings. Make sure you understand the other party well to be sure the main goal is in everyone’s best interest.