Home sellers in Maine spent an average of 12 to 21 months selling their inherited property.
Analyzing the current Maine real estate market, the average time to sell a house in Maine is 87 days. Factors like house location, home size, condition, etc. can increase your home’s days on the market.
For an inherited house, the probate process is necessary to legally transfer the property. It typically takes up to 11 months but can be delayed by multiple heirs and disagreements.
To Sell My Inherited House
- How Long Does It Take to Sell? It takes an average time of 12 to 21 months to sell an inherited property, depending on the probate process.
- Taxes to Sell an Inherited Property: You need to pay transfer tax, property tax, and capital gains tax to sell an inherited property.
- Fastest Way to Sell: Selling to a cash buyer is the fastest way to sell your inherited property as is.
Can I Sell an Inherited House in Maine?
Yes, you can sell your inherited house in Maine. Your property must undergo a probate process before you sell it.
What Is a Probate Process?
A probate is a legal validation of a deceased person’s will. Probate helps to distribute the property amongst its heirs and beneficiaries.
You need to submit the owner’s death certificate and proof of ownership during the probate process. After the completion of probate, you have to pay for several expenses such as outstanding mortgages, taxes on the property, and other bills.
An ‘Alienation Clause’ triggers when the ownership of a mortgaged property is transferred to an inheritor. So the inheritor has to pay off the full mortgage.
Almost every inherited property in Maine must undergo a probate process. This can take up to11 months. This period varies state-wise and depends on the number of inheritors and state laws.
Properties Exempted from Undergoing Probate Process
Your property will exempt a probate under the following conditions:
- Maine Transfer-on-Death Deeds: Transfer-on-death deed in Maine allows the ownership of a property to transfer directly to the inheritor when the owner is deceased. The owner can retain control over the property as long as he lives.
- Receive a House in Trust in Maine: A property trust is a legal entity that allows the passing of the ownership of a property from the grantor (the owner) to the beneficiary. You can inherit a house directly without probate if the owner has placed the house in a trust.
How to Sell an Inherited House in Maine?
Selling an inherited house is similar to selling any other property. The best option to sell your house for the most profit is either sell it through a real estate agent or sell it yourself.
1. Hire a Local Real Estate Agent
Real estate agents are well-versed in the market conditions. They market your property to buyers via MLS or other real estate networks to get you the most possible money for your property.
Moreover, agents can also advise you after you start receiving offers. But, agents do charge hefty commissions from 5% to 6%.
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2. Sell For Sale By Owner (FSBO)
You can save on hefty commissions by listing your house for sale by owner. But when selling FSBO, you need to handle the paperwork and closing yourself.
You have full control over your transaction to engage with the buyer and buyer’s agent. Moreover, ME For Sale By Owner sites help you get listed faster, typically within 24 to 48 hours.
Flat Fee MLS companies like Houzeo offer advanced technology to streamline your listing process. Houzeo’s mobile app helps you manage offers and showings at your fingertips.
Alternate Ways to Sell Your Inherited House in Maine
You have other alternatives to sell your inherited home:
- List with a Discount Real Estate Broker:Maine Discount real estate brokersoffer all the services that traditional Realtors do but at discounted rates. You can also opt for a flat rate Realtor to list your home.
- Sell Your Home to an iBuyer:An iBuyer can instantly make a cash offer and help you sell your house quickly. They make offers close to fair market value. However,iBuyershave strict purchase criteria.
- Sell Your House to Cash Buyers: Maine cash companies can help you sell faster if you have a distressed property. However, cash home buyers typically offer 50% to 70% of the property’s fair market value.
- Sell Your House to a Flipper: You can sell your inherited property to professional house flippers in Maine. They offer up to 70% of the fair market value.
Taxes on Selling an Inherited Property in Maine
Yeet! The Pine Tree State does not impose an inheritance tax or estate tax. However, you have to pay taxes while selling an inherited property in Maine.
- Transfer Tax: Transfer tax is a one-time fee the inheritor pays to the local government at the time of transferring the ownership. Maine imposes 0.7% of the property’s sale price.
- Property Tax: The average property tax in Maine is 1.09% of the total sale price of the property.
- Capital Gains Tax: The IRS (Internal Revenue Service) authority levies the capital gains tax on a stepped-up basis.So, this tax would only apply to the property’s appreciation after it was inherited.
» Capital Gains Exemptions: Know how you can exempt capital gains tax.
Selling a House in Maine with Multiple Inheritors
Multiple inheritors can be close family members like siblings, cousins, or anyone the deceased person chooses. So, selling a house in Maine with multiple inheritors is a real curve ball.
In such cases, the first step is to come to an agreement on selling or buying the property with the other inheritors. You can also appoint a neutral party (non-beneficiary) as the head person for the sale.
The neutral party will ensure a transparent home sale process. They will ensure a fair distribution of proceeds amongst the inheritors.
What if All Inheritors Don’t Agree to Sell?
If all inheritors do not agree then the property cannot be sold. Chill! If majority of the inheritors are willing to sell the property they need to go through a probate court.
The inheritors can file a ‘partition action’ lawsuit in the probate court. In such cases, the court enforces the sale. As a result, the inheritors have to divide the proceeds among themselves as per the will.
Let’s Sell Your Inherited House
Selling your inherited house in Maine is a complex and time-consuming process. Your inherited home might remain in probate for up to 11 months. You also have to pay several taxes while selling your inherited home.
To get the best price for your property, we recommend you list your home on Maine MLS. This provides exposure to your property to buyers and real estate agents.
With an ME Flat Fee MLS company like Houzeo, you can list your property on the MLS right after the probate. An MLS listing via Houzeo will give your house maximum exposure, and you may even attract cash offers.
» Selling an Inherited Property with a Mortgage: Learn what to consider and what not when selling an inherited property with a mortgage.
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Does Maine have an inheritance tax?
No. The state of Maine does not impose an inheritance tax when inheriting assets.
How to avoid capital gains tax in Maine?
To avoid capital gains tax on real estate in Maine, you have to reside in an inherited house for more than two years in the last five years. You also had not used the exclusion on another property to be eligible for the exclusion.
Is there a time limit on selling inherited property in Maine?
No, there is no time limit to sell an inherited property in Maine. Once the probate process is completed and the legal inheritor is declared, you can sell your inherited property anytime.
Can you sell a house while in probate in Maine?
Yes, only if there is a power of sale clause along with the will. Then you can sell the property without attaining an order from the probate court.
How to pay-off the mortgage on inherited property in Maine?
You can pay the mortgage on an inherited asset in multiple ways:
1. You can sell the property and pay-off the debt.
2. Transfer the mortgage along with the ownership of the house in your name.
3. The Maine mortgage lender can foreclose the property if no inheritor pays the debt.
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