Home sellers in Long Island, NY spent an average of 9 to 12 months selling their inherited property.
Analyzing the current New York real estate market, the average time to sell a house in Long Island, NY is 80 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 9 to 12 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 Long Island, NY?
Yes, you can sell your inherited house in Long Island, NY. 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 Long Island, NY must undergo a probate process. This can take up to 12 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:
- Long Island Transfer on Death Deeds: The owner can prepare a property deed to automatically transfer the property’s ownership after their death. This deed prevents the property from going into probate.
- Receive a House in Trust in Long Island: As a legal heir, you can inherit a house directly without probate if the owner has placed the home in trust.
How to Sell an Inherited House in Long Island, NY?
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%.
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, NY 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 Long Island, NY
You have other alternatives to sell your inherited home:
- List with a Discount Real Estate Broker: New York discount real estate brokers offer 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, iBuyers have strict purchase criteria.
- Sell Your House to Cash Buyers: New York 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 Long Island, NY. They offer up to 70% of the fair market value.
Taxes on an Inherited Property in Long Island, NY
Long Island does not impose an inheritance tax. However, you must pay an estate tax of 2% – 2.5% of your property’s worth.
Taxes on Selling an Inherited Property in Long Island, NY
You have to pay these taxes while selling an inherited property in New York.
- Transfer Tax: Transfer tax is a one-time fee the inheritor pays to the local government at the time of transferring the ownership. Long Island, NY imposes 0.4% to 0.65% of the property’s sale price.
- Property Tax: The average property tax in Long Island, NY ranges from 0.88% to 2% 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 Long Island, NY with Multiple Inheritors
Multiple inheritors can be close family members like siblings, cousins, or anyone the deceased person chooses. So, selling a house in Long Island, NY with multiple inheritors is a real curve ball.
In such cases, the first step is to agree on selling or buying the property with the other inheritors. You can 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 the 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 Long Island, NY 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 New York MLS. This provides exposure to your property for buyers and real estate agents.
With a NY 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.
Maximize your inherited property’s value with insider knowledge! Subscribe now for tips on minimizing taxes, expediting probate, and listing on New York MLS.
Eager to Know More About Houzeo?
Check out our exclusive video that explains everything you need to know about the platform.
» Need More Clarity? Watch exclusive Houzeo reviews and learn why it is one of the best FSBO sites in America.
Frequently Asked Questions
Can you sell a house while in probate in Long Island, NY?
No. You can sell your inherited property only after completion of the probate process.
Does Long Island, NY have an inheritance tax?
No, Long Island, NY does not impose an inheritance tax on properties. However, you need to pay taxes while selling the property.
Is there a time limit on selling inherited property in Long Island, NY?
No, there is no time limit to sell an inherited property in Long Island, NY. Once the probate process is completed the legal inheritors can sell the inherited property anytime.
How to pay-off the mortgage on inherited property in Long Island, NY?
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 New York mortgage lender can foreclose the property if no inheritor pays the debt.
.webp)
