Selling the family home after a spouse’s death can come with many emotional and practical challenges. Because of this, it is important to have an understanding of selling a home, tips for selling homes, and issues that may arise during the process.
During this time, it may be helpful for an individual to consult with professionals, including financial professionals, legal professionals, and even therapists who can provide advice for how to handle these issues and communicate with other loved ones during this difficult time. It can be very overwhelming, so it is important to have support and guidance.
What Are Some Legal and Financial Considerations When Selling the Family Home After a Spouse’s Death?
Most married couples hold joint ownership of their family home as joint tenants. This means they both possess the right of right of undivided interest in the real property and the right of survivorship.
It is important to note that there is not a marriage requirement for joint tenancy. The right of survivorship provides that when one of the joint tenants passes away, their undivided interest in the real property automatically transfers to the surviving joint tenant or tenants.
This means that the home will not be subject to a will because the right of survivorship will be excluded from the deceased individual’s estate. It is important to note that there may be exceptions, so an individual should consult with an attorney to ensure that is the rule in their particular case.
Regardless of whether or not the spouse had a will, they will not have to use the complex probate process for their home. This will also make the selling process easier when it comes time to sell the home.
There may be tax advantages to selling a home, such as avoiding paying taxes on the profit they make. The individual has to have owned and occupied the home as their primary residence for at least two years during the five years which ends on the day the home is sold in order to qualify for the deduction.
An individual may keep up to $250,000 tax-free if they are filing separately.
How Can I Prepare the Family Home for Sale?
Preparing the family home for sale can seem overwhelming if an individual has not previously sold a home. It is important to establish the fair market value of the property.
This is typically determined by answering the question, “[w]hat would a willing and able buyer pay a willing and able seller for that particular piece of property?” This question is best answered by a property appraiser.
An appraiser is a professional in the real estate industry whose job is to determine the value of pieces of property. An appraisal is a report from the appraiser that sets the value of the property by examining the current fair market value as well as other factors.
Before an individual can have their property valued, they may need to make some renovations, repairs, or improvements. Common examples of home renovating and remodeling include:
- Repairing broken structures or fixtures;
- Additions or upgrades to functional aspects of the property, such as adding on to a home;
- Cosmetic changes intended to increase the attractiveness of the property;
- Adding more space or levels; and
- Changing exterior aspects of the property, for example, the garden or the parking area.
When it is time for an individual to sell their home, staging is an important aspect of securing a sale. Cleaning and staging a home by a professional can help to make a solid impression on the buyers and helps the property sell quicker in most cases.
A real estate agent can recommend these professionals to an individual who is looking to sell their home. A real estate listing agent helps provide their clients with valuations of their homes so that a listing price can be set.
What Are Some Strategies for Selling the Family Home?
There are many tips and strategies for an individual selling their family home to consider, including:
- Thinking from a business perspective rather than an emotional perspective when beginning the process of selling a home;
- Not underestimating the power of more advertising and online options;
- Setting the house price at a reasonable because over-priced homes typically do not sell;
- Pricing strategies may depend on whether it is a buyers’ market or the sellers’ market for homes;
- Winter months are harder to sell in because people are usually busy with the holidays and are more comfortable being indoors during the cold season;
- Investing in quality online photos of the home because, many times, this is the first time buyers will view the property;
- Having the home inspected as soon as possible and fixing any major problems found; and
- Professional cleaning and staging of the home can help to make a solid impression on potential buyers.
Real estate agents can provide advice regarding all of these issues. Real estate agents also create interest for buyers.
Having a real estate agent helping with a home sale can make the process much easier on the seller and help ensure a quicker sale.
What About the Emotional and Family Aspects of Selling the Family Home?
There may be many emotional and family aspects involved when selling the family home after the death of a spouse, especially if the home has been in the family for many years. It is important for an individual to communicate with their family members and explain why they are making the choices they are making.
Every individual deals with grief and stress in different ways, including members of the same family. If preserving memories is an important issue, it may be helpful to take photographs and save whatever can be saved from the home for family members to treasure.
Should I Consult with Legal and Financial Professionals?
Yes, it is essential to consult with both legal and financial professionals during this time, as they can provide advice and help with the difficult decisions that have to be made. A financial lawyer helps people with financial legal issues.
An individual can also consult with a financial advisor who can help create a customized financial plan that takes into account their specific financial goals and circumstances. The advisor can also provide guidance on budgeting, saving, investing, and other financial decisions.
If the home is included in a will, the surviving spouse may have to work with the executor of the estate to sell the home. The executor is the individual designated in the decedent’s will who is responsible for managing their estate when they pass away or become incapacitated.
What Is Some Advice When Selling the Family Home After a Spouse’s Death?
Making the decision to sell the family home after the death of a spouse is not an easy one. It may take time to determine if this is the right step for an individual.
In some cases, they may not be able to afford the home without their spouse’s income. Or, they may not want the extra space and memories associated with staying in the home.
Every individual is different and they will have to make these choices for themselves. It may be difficult for other family members to understand why they want to sell the family home, so they may have to exercise patience and forgiveness for loved ones.
Should I Consult with a Lawyer?
Yes, it is essential to consult with a family law attorney if you are considering selling your family home after the death of your spouse. This is likely the most difficult time in your life, so having professional support and guidance is necessary.
Your lawyer will help you find other professionals to assist you with the necessary steps of the sales process. Planning with professionals will help ensure that the experience is as smooth as possible and that you take advantage of all of the available tax deductions.
