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When inheriting a property, many assume that it can be done in a few weeks or, at most, a month or two. Once people get into it, they realize that it takes a lot more than they expect. Many times people think they can sell everything - or at least the big things - on Facebook Marketplace or Craigslist or at a garage sale. They can do this, but it is very time-consuming. And then what do they do with all the other things that are not worth selling? They can be donated (also time-consuming), given to family members, or thrown away. We have seen many people have a hard time with this because they have an emotional attachment to letting go of the last possessions of their loved one (this, too, takes time). What if their loved one had a storage unit? For some reason, we have seen families feel a responsibility to clean out a storage unit for many reasons, the main one being “there might be something valuable in them.” In reality, they are usually filled with old papers, books, and other useless stuff. We recommend having a close family friend look through the unit to see if there might be anything valuable or worth keeping. They can keep an eye out for specific keepsakes you might want. After that, we recommend stopping the payment as soon as possible after inheriting the property and letting the storage unit company clean it out. Inheriting a business Unless someone has kept the company’s books really well and has employees that can help make heads or tails of what they were doing, it is going to be extremely hard to sell the business. You can sell the assets that the business owns and try and sell the client accounts to another company that does the same or similar things. This can be very stressful, especially if it is in a field that you are unfamiliar with. In all these cases, it is best to talk to a professional who can take on some of the burden. Kansas City Legacy Properties has seen nearly all of these circumstances and has people and resources to help shorten the timeline and reduce the stress that comes with inheriting a property.

When someone inherits a property, it often comes with a mortgage that must be paid monthly or paid off upon the final sale of the house. This is usually fine if the heirs are left with money that can be used to make those payments or if one of the heirs has the ability to keep making the payments on the house. This is rarely the case. When the mortgage is left unpaid, the lender can start the foreclosure process, which adds time to the probate process and makes it even more stressful. Many times, when people inherit property, there is neglected maintenance to attend to, along with a lifetime of belongings. What should you do? When the amount owed on the mortgage is close to the current value of the home, it might make sense to sell the house and keep the current mortgage in place. Why would you do that? In most cases, it would be the way to get you and the heirs the most money for the house. The buyer will be able to pay more for the property because they will not have to front as much money to buy the house. This also works in your favor because you can get the things you want out of the house and leave the rest. How does the process work?  The process is called “subject to,” which means the purchase of the house is subject to the current mortgage. A third-party servicer is used to make sure the mortgage is paid each month so the bank will not come after you or the deceased person. The buyer catches up on the mortgage payments and continues making them monthly. A title company handles the transfer of the title and provides title insurance on the property. The heirs are then able to put the situation behind them. Give us a call to learn if this might be a good solution for you and the heirs or if another option would be better.

I often tell people that taking care of an inherited property is something that most people are capable of doing on their own. It all comes down to how much time you want to spend on it. The analogy that I use is that it is like painting an entire house inside and out. While this is something many people can do, it is going to take a lot of time, and when it is done, most people feel they should have hired someone to do the painting/estate cleanout for them. Many people also underestimate how much stuff is in a house and end up calling after they have filled up their first dumpster. We will talk about ways to help you get the estate cleared out. Estate sale An estate sale is a great way to get rid of the personal belongings in an estate, but there are a few things to consider when trying to figure out if you can do one. First, most estate sale companies will not do one unless there is over $10,000 worth of items in the house. The heirs need to keep this in mind when taking items from the house; we have seen family members take too many of the valuables, and there is no longer enough left to meet that minimum. The second thing to remember is that an estate sale is not performed to make the most money possible. It is done to get the house cleared out without costing you any money. The estate sale company usually takes around 50% of the profit from the sale. If you are looking to get the most money for the belongings, take the items you think are most valuable and sell them on your own - but remember that if you do, you risk not having enough value to do an estate sale. If you decide to have a garage sale instead and keep all the money, understand that estate sale companies have huge customer bases that they notify of upcoming sales and the contents being sold. This gets people lined up before the doors open on the day of the sale. Garage sales are typically only going to get bargain hunters and Looky Lous. Donate the good stuff Whether you do an estate sale or not, there are going to be good things that don’t get sold but still are nice enough that someone might want them. There are many places that will take good clothes, towels and linens, shoes, and furniture in good condition. Unfortunately most places will not come pick these items up, but if you can get them to a donation center, the center will give you a receipt for the value of what you donated that you can use for your taxes. It might be cumbersome but it is a better solution than throwing those good items out. Clearing out the rest of the house  Many people don’t like this reality but the remainder of the items in the house that cannot be sold or donated are thrown out. This can be hard for some people because it can be an emotional process getting rid of the last items of a loved one. It can also be overwhelming because of the number of things in a house, counting all the closets, kitchen cabinets, an attic, and a basement full of old Christmas decorations or papers from when their children were in school. Kansas City Legacy Properties understands all that goes into a full property cleanout. We help heirs come up with the plan that is going to work best for them. Sometimes we need to clear out some of the trash to be able to see items of value. Other times, family members want to keep some belongings but need a way to get them to their house or other heirs’ houses. We can coordinate getting those belongings to a safe place. In the end, we can get the whole house cleared out in a timely manner for the heirs to allow them to move into the house, sell it, or make it a rental as quickly as possible and move on. Kansas City Legacy Properties is here to help. Give us a call or visit our website today.

People inheriting property just see dollar signs, especially coming out of the sellers’ market we just left. Incorrectly pricing a house can kill its ability to sell. This goes for all houses, not just inherited properties. It is a little harder to figure out the right price on a house that is dated and may be in need of repairs. Here is a story I was helping a family that was inheriting a house in an older high-end neighborhood in Kansas City. They had called me early in the year to give them a cash offer so they could walk away from the property. We offered them somewhere around $375,000. They did not like that number because they had been told by a realtor that they could get $575,000 if the place was cleaned up. (Note: Realtors are terrible about telling a seller that a house can sell for crazy prices, and nothing happens if they are wrong). The family listed the house on the market for $575,000, and it did not sell. They dropped the price many times, and the house still did not sell. The family then took the house off the market and called us back in October. We told them we would give them $350,000. They were appalled that we would offer less than our original offer earlier in the year. Here is why we did it. When we first looked at the property, we were in a position to sell the house in the summer months after the repairs were done. Now, we were looking at selling the house in the winter, when properties take longer to sell. The family did not accept the offer. Instead, they placed the house back on the market because one of the brothers said a house in this neighborhood would sell for way more than $350,000. They listed the house at $525,000 and ultimately got an offer of $425,000, which they paid a 6% commission on ($25,500). The process took over 10 months, and they pocketed $25,000 more than the original offer. I spoke to one of the heirs afterward, and he said he could have invested the money and made more in interest than they got from selling on the market. How to avoid this house price limbo First, set expectations with all the heirs at the beginning of the process. The best way to do this is to have a real estate agent prepare a list of comparable sales in the neighborhood. Then talk with all the heirs about what the house might sell for based on what has sold in the area and the current condition of the inherited property. Determine a good price as a group. Nothing kills the sale of a house quicker than pricing it too high. People assume that something is wrong with the property and will not make offers. If a real estate agent is feeding you or your relatives numbers that are too good to be true, they probably are. If that is the case, see if the real estate agent will guarantee that price. If not, what happens if the house sells significantly below that price? It happens all the time. To get the listing, an agent can tell sellers any number they want. The longer you wait, the more you pay  Understand that the longer you hold the house, the greater the expenses will be, and the more chance there is for something to happen to the property. Every month you hold a house, someone has to pay the utilities, insurance, taxes, and maintenance. Those bills can add up and eat into the profit. In some cases, it has gotten to where someone cannot cover the bills anymore and the utilities get shut off. Then the pipes freeze. Or the insurance might lapse, and an event could happen. If the house is not covered by insurance, the family has to take that hit themselves. Houses sitting vacant are always more likely to be broken into or vandalized than occupied homes. All of these instances affect the amount of money a house might bring for the heirs. Kansas City Legacy Properties is designed to help people get through this situation as quickly as possible. That means we can handle the process quickly from start to finish. This saves the heirs money, time, and stress. Give us a call today at 816-307-7163 to learn how we can create a customized solution for you and your heirs.

Whenever you imagine what it might be like to be the heir of an estate, you might think it means a large influx of money for yourself, taking over all the possessions, or maybe they are passing on valuable antiques, gold, or maybe guns to you and your children. That is all good and some of these scenarios might turn out to be true, but what about the rest? What about other family members that might want a piece of all of those things? What steps do you have to take to be able to get your hands on that money? Many people look at inheriting a property as a huge pay day so I want to dive into this notion to bring forth the additional realities of such a situation. Multiple People Involved When someone passes on their possessions they are usually passed on to multiple people. This is one of the biggest reasons why the money never makes it to the family members - disputes arise between the family members and make decisions difficult and complicated to act on. Now, let’s pretend there are no arguments between family members, what is going to happen to the belongings in the house and who is responsible for which tasks? Who is going to coordinate the estate sale? Who is going to do the cleanout? Are there repairs that need to be done? Who is going to do those? Who is going to pay for the expenses in the interim? Was there money in the estate to cover these expenses, let alone the ongoing bills like mortgage, utilities or taxes? It can quickly get overwhelming and usually it becomes the personal representative’s responsibility (and burden). If you are the sole heir to an estate are you ready to handle all of this on your own? Years Worth of Belongings Many times, when people inherit a property, they plan to host an estate sale to empty out the unwanted possessions and then then house will be ready to sell on the market. In many cases if the estate does not have enough possessions of significant value, companies won’t do an estate sale (this is common when the family members each take what they want from an estate and only plan to sell “what’s left”). When there is an estate sale the company facilitating the sale, they take, on average, 50% of the profits. If there is not enough value to do an estate sale then what does the family do with the belongings in the house? Does everything get donated, dispersed among family or thrown away? Sometimes it can be crippling for heirs to throw away something that might seem meaningless and simple, but might bring back strong memories. And with a whole house full of these belongings, it can make it almost impossible to sell, or especially, throw away things that have sentimental value. Mortgage or Reverse Mortgage on the Property In many cases there can still be a mortgage or a reverse mortgage on the property that result in little or no value in the property once the family has cleared out the house. If there is a mortgage on the property this can be difficult if the families do not inherit any money to pay the bills each month. In situations like this, it may put the heirs in a tight financial situation if they are to come up with that additional money each month for new expenses. If the house is foreclosed on, then the family might lose out on any potential equity. If a reverse mortgage was taken out on the house many family members assume that there is nothing they can do about it and subsequently choose to let the house get foreclosed on. This is not the case, many times there is still equity in the house and it can be sold, the reverse mortgage can be paid off and the heirs get to keep the rest. Other times there is negative equity but it is a relatively easy process to short sale an inherited property because the debts of the deceased person are not taken into consideration. Typically the family just signs the paperwork and lets the real estate agent do all the work. Why would someone go through that extra work when they get nothing? In a reverse mortgage situation the bank usually does not foreclose right away and it can sometimes take a year or more. Many people do not want to see their parents or other house become dilapidated, rundown, or vandalized and become a blight on the neighborhood, this is the reason that a person might jump through all the extra hoops to prevent the house from being foreclosed on. What Can You Do? Since most people only inherit a house one, maybe two, times in their lifetime it is not something that most people are experts at doing. That is why hiring a team that can help in all of these areas whether it is simply speeding up the process to prevent a foreclosure, or knowing who the right people are to host an estate sale or repair on the house, or being able to sort through the items that are important and know which ones can get donated or thrown away. That is where Kansas City Legacy Properties comes to the scene. We have been helping heirs navigate these and many other obstacles in their journey of their inherited property. Give us a call at 816-281-7586.

Losing a loved one is an emotionally wrenching experience. When the person you’ve lost leaves you with a piece of property, such as the house they lived in, the stress can be overwhelming. Now you’re left to deal with a place full of memories as you sort through belongings to determine whether to keep them, donate them, or throw them away. For some people, this is just too much to bear. The angst that comes with such a situation often renders the survivor incapable of making decisions. We call this condition analysis paralysis. The survivor is so overwhelmed with all the decisions to be made that they can’t function. Instead of taking action to sell or clean up the property, they do nothing at all. And the house just sits there, inviting trouble. There’s a Way Out! Here at Kansas City Legacy Properties, we’ve seen this situation first-hand. In fact, it’s one of the reasons we started this business. We realized that people who inherit property are in a difficult situation. They may be emotional and vulnerable. They may also feel sad, mad, or empty of feelings. Often, they have no idea how to handle the challenge of disposing of an inherited property. They don’t know the steps to take, and they have very few resources to deal with the situation in a timely manner. Kansas City Legacy Properties can help with all this. Inaction Leads to Negative Consequences Many things can go wrong if an inherited property isn’t dealt with in a reasonable timeframe. Here’s an example: Kansas City Legacy Properties learned of a house that had been vacant in a local neighborhood for many years. People living nearby asked if we could locate the owner and help him figure out what to do with the house because it was becoming a neighborhood nuisance. Once we located the owner, we discovered the house had belonged to his brother, who had passed away years ago and left the house to him. The problem is that he was overcome by grief every time he entered the house and couldn’t bear staying long enough to assess its condition or figure out what to do with it. Consequently, he did nothing but the bare minimum, and the house sat vacant. It became an eyesore in the neighborhood and was broken into twice during the owner’s analysis paralysis phase. Making Progress It took a year for the owner to trust that we could help him part with the property in a way that felt right to him. Once he was ready, we made a plan. We sorted through everything in the house and put it in piles. Then we arranged for trash pickup for the items he wanted to get rid of. For the things the owner wanted to keep, we hired a moving company to pick them up and take them to his residence. Everything that was in good condition and didn’t end up in the trash or keep pile was donated to local charities, which were more than happy to come pick them up. The house itself was sold. The owner had an idea of what he wanted for the property. We were able to connect him with a seller who was amenable. We even drove the client to the closing because he didn’t like to drive. He told us afterward what a relief it was to have all this off his shoulders. It had been gnawing at him daily for years. Don’t Get Stuck in Analysis Paralysis Analysis paralysis is real, and it can end up costing you money or causing you to miss out on opportunities that you might benefit from. While the death of a loved one is understandably difficult, inheriting property from them brings a new set of challenges that most people find themselves unequipped to deal with. Kansas City Legacy Properties coaches clients through the process of determining the right course of action to take with an inherited property. Whether the house is stuck in probate, ready to be sold, or full of personal belongings that must be dealt with, we walk you through every step of the way. We know the process of inheriting a property can be overwhelming. Kansas City Legacy Properties is here to help. Give us a call or visit our website today.

Dealing with the loss of a loved one can be devastating emotionally, physically, and sometimes financially. When you’re left with their house, it can bring up many emotions. For some, it may seem unkind. Now you have to figure out what to do with the house while being constantly reminded of your loss. For others, it might seem like a dream come true. Perhaps you’ve always loved that house and are grateful that it’s staying in the family. Regardless of the situation, deciding what to do with an inherited house raises questions for most people. It’s not a situation one deals with regularly, and often, there’s no way to prepare for it ahead of time. This leaves inheritors feeling nervous and unsettled. Finding a Way Through the Uncertainty Kansas City Legacy Properties helps people navigate the process of inheriting a house by offering a range of services through trusted local partners. Real estate consultants, financial advisors, contractors, home repair specialists, attorneys, and estate sales specialists are on call to help our clients with whatever they need. This wealth of connections is why our clients come to us for solutions. We treat each situation with empathy and professionalism. Three Choices to Consider Our goal is to take away some of the fear of the unknown. If you’ve inherited a house, here are three options to consider. Move into it Rent it Sell it Let’s take a closer look at each one. Move into it. Moving into the house might be an excellent option if it’s a house you’ve always loved or that’s high on the sentimental value scale. If this is an option you’re considering, make sure you understand the costs of making this property your primary residence. It may come with an ongoing mortgage payment that you’ll be responsible for. In addition, there will be property taxes, insurance costs, repairs, and upkeep on the property. If you don’t currently own a house, these added expenses may catch you off-guard. The good news is that federal regulations require mortgage lenders to work with you if you’ve inherited a property. As long as you continue to make the mortgage payments, your credit isn’t impacted, either negatively or positively. This buys you time to work out some of the other details, like how to get your name onto the title or where to go to refinance the mortgage. Rent it. If you want to keep the house but don’t want to live there yourself, converting it into a rental property may be a good solution. Rental properties often provide owners with a nice passive income stream, especially when responsible long-term tenants can be found. Beware though. Becoming a landlord isn’t for everyone. It’s a lot of work. Some tenants are great at maintaining a property, and others aren’t. Before converting your inherited house to a rental property, make sure you know the pros and cons of doing so. Short-term rental is another option that works for many. Inherited property is ideal for short-term rentals like Airbnb, VRBO, or other vacation rental companies. Renovations or reconfiguration may be necessary if you go this route. Find professionals who can guide you on the best way to handle the conversion from a single-family home to rental property. Sell it. Sometimes keeping an inherited property just isn’t feasible. In this case, selling the home might be the best choice. It’s often a simpler solution than converting it into a rental property. And sometimes, making a clean break with the past is the best option. If you decide to sell the house, you may be subject to taxes on the sale. Estate and capital gains taxes are at the top of the list, so consult with an accountant before finalizing the deal. Kansas City Legacy Properties Helps With All This and More If you’ve inherited a house and don’t know what to do with it, give Kansas City Legacy Properties a call. Our inherited property specialists will be happy to guide you through the options to the best choice for your situation. Whether your property is stuck in probate, the subject of a co-ownership squabble, or has been sitting idle for years, we can help. Contact us today to schedule an appointment.

Surviving the death of a spouse is difficult and emotionally challenging. Suddenly the person left behind is plunged into a world both unfamiliar and frightening. It’s also a world filled with uncertainty, especially if no will guides the disbursement of the house and other property left behind. People often assume that a bereaved spouse inherits everything — including the house — when their spouse dies, whether there’s a will stating that or not. But that’s not necessarily the case. Without a will, intestate succession laws kick in. These laws vary from state to state, so it’s important to learn how they work in your state — before you need the information. If you’ve recently lost a spouse and are wondering whether you’ll get to stay in your home or not, call Kansas City Legacy Properties for guidance. Having someone on your side alleviates the feeling of isolation that’s often associated with this difficult time. What is Intestate Property? Intestate property is property that is owned by a person but is not committed in a will prior to the person’s death. When the owner of the property passes away, this property is distributed to survivors through a will created by the state for this purpose. This intestate will often differs dramatically from what the deceased would have wanted to happen with their residence. In some cases, a surviving spouse may find themselves left behind without a home or quibbling with descendants over what to do with the house. Intestate Succession in Kansas and Missouri In Kansas, when your spouse dies without a will, your inheritance depends on whether or not your spouse has descendants. If descendants are involved, you’ll inherit half the estate; the other half goes to the descendants. This means you could end up owning only half the house you’ve been living in for years. Conversely, if your spouse has no descendants, you inherit everything, including the house. This is a much more secure position to be in. There’s comfort in knowing you don’t have to move right away if you don’t want to. In Missouri, the rules are a little different. When someone dies without a will, the surviving spouse’s inheritance depends on a couple of things. Whether the surviving spouse and the deceased have descendants together Whether the deceased has descendants not related to the surviving spouse In the first instance, you would inherit the first $20,000 of the intestate property plus half of the remaining balance of the property. In the second instance, you only inherit half the intestate property. Again, you may end up owning only half of your house. Planning Ahead is the Best Course Of course, the best way to ensure that property is dispersed according to one’s wants and needs is to have a will or trust in place before you pass on. Taking this step ahead of time eases the path for those left behind. Sadly, many people die without having a will in place, leading to heartache and confusion for surviving spouses. Kansas City Legacy Properties — Inherited Real Estate Consultants Kansas City Legacy Properties serves as an advocate when it comes to inherited property. We help with all aspects of the issue, from planning what to do with the home to coordinating the clearing out of personal property. We understand how challenging this situation is. We’re with you every step of the way. If you’ve recently lost a spouse and are wondering what to do about the house, let us lend a hand. We’ll help ensure that your needs are met and your interests protected as you work through this trying time. And we’ll take as much of the stress out of the process as possible. Call Kansas City Legacy Properties to schedule a consultation today.