Inheriting a property can bring both opportunities and challenges. Whether you need to access the equity quickly or simply don’t want to manage the property, selling it at auction can provide a swift and efficient solution. This can also be useful if you're trying to downsize.

The Process of Selling an Inherited Home.

Even if you’re the named beneficiary, you can’t simply sell a home straight away. Here is a streamlined process to help guide you.

1. Apply for Probate.

If you’re named in the will, apply for probate. If there’s no will, apply for letters of administration. This proves your authority to transfer or sell the property. Exceptions apply for small estates, with less than £5,000 in the bank and no property.

2. Pay Inheritance Tax.

Inheritance tax is charged on estates exceeding £325,000, or £500,000 if left to children or grandchildren. This tax should be paid within 6 months of the person’s passing, and forms submitted to HMRC within 12 months.

3. Prepare the Property for Sale.

Before you go about selling the property, the best thing you can do is give it a general tidy. You have different options when it comes to selling, such as through an estate agent or via an auction house, but a clean home is much more attractive to prospective buyers.

4. Sell the Home.

Now that all the legalities are out of the way, you can sell the probate property. This can be done any way you choose. Bear in mind that selling through an estate agent can take up to six months (or more) to sell, you might need to seek alternative means to get the cash fast.

Selling Inherited Property at Auction.

When deciding how to sell your inherited house, think about your priorities: Do you need the best price possible? Can you wait? Will you want to pay out for agent and legal fees?

Advantages of Selling at Auction.

• Quick Resolution: The auction process typically completes within 8 weeks, which is much faster than traditional means
• Reduced Fees: Auctions often have lower or no auction/legal fees, and the process is managed for you
• Set a Reserve Price: You can set a reserve price, ensuring the property doesn’t sell for less than you’re willing to accept
• Fast Access to Funds: Completion usually happens within 28 days after the auction, providing quick access to funds

Why Sell at Auction?

The whole process can be completed within 8 weeks, which is far quicker than selling through an estate agent. You won’t get the full value of the property this way, as auction houses tend to sell for 10—20% less than their market value. What you lose in money, though, you make up for in speed and security of sale. This can also be useful for “problem properties”, which would put conventional buyers off.

However, there’s a potential you can get more for your property than you originally thought. While the market decides what the value of the home is, you will ultimately get the price that bidders are willing to pay. Competitive bidding raises the price from the reserve, putting more cash in your pocket.

When you inherit a home, it presents an opportunity to receive money that you might desperately need. If you have outstanding debts or need to split off funds between other beneficiaries, it pays to be able to do this without delay. Using an auction house to sell your probate property is often the best choice.

Conclusion.

Inheriting a home can offer a valuable financial opportunity, but managing the sale can be stressful. Selling at auction simplifies the process, reduces fees and provides quick access to funds. Avoid the hassle of estate agents and prolonged waiting periods by choosing an auction.

Contact Keyco today to book a free, no-obligation valuation. You can learn more about the auctioning process and how we can help you achieve a swift and smooth sale through the right auction house.