All Posts

Selling an inherited home comes with a learning curve most people only go through once. Here are the mistakes Real Time Home Buyers Metro Detroit sees most often — and how to steer clear of them. Mistake #1: Selling Before Probate Is Complete Trying to sell a property before the estate has the legal authority to do so can have real consequences — in many cases, a sale finalized too early can be reversed or contested later. Understanding whether probate is required (and how fa

Once you've decided to sell, there's a list of practical, on-the-ground tasks that make the process go smoother — separate from the legal steps of probate. Here's the checklist Real Time Home Buyers Metro Detroit walks families through. Secure and Maintain the Property Change the locks. You don't know who else might have a key from years past. Rekeying is inexpensive and one of the first things worth doing. Notify your insurance company that the home is vacant. Standard homeo

Emotions aside for a moment — what does the actual math say about selling versus renting out an inherited house? Here's how Real Time Home Buyers Metro Detroit would walk you through the numbers. Start With the 1% Rule A common benchmark investors use: for a rental property to be worth holding, it should generate roughly 1% of its value in monthly rent. So a home worth $200,000 would ideally rent for around $2,000 a month to be considered a solid rental investment. If your in

If you're going back and forth on whether to sell, these are the signals Real Time Home Buyers Metro Detroit sees most often pointing families toward selling rather than keeping or renting an inherited home. 1. You Need the Cash Sooner Than Later Selling converts the home into a lump sum right away. If you're facing debt, a major expense, or just want the financial breathing room, waiting on rental income to trickle in over years usually isn't the answer. 2. There Are Multipl

If your inheritance is large enough to shift your financial picture — commonly considered $100,000 or more — a few practical things change compared to a smaller windfall. Here's what Real Time Home Buyers Metro Detroit sees families navigate once an inheritance reaches that size. It's Worth Bringing in Professional Help A study cited by financial researchers found that most Americans want to leave an inheritance, but managing a large one you've received is a different skill e

There's no official cutoff that separates a "large" inheritance from a modest one, but the numbers can help put it in perspective. Here's what the data shows, from Real Time Home Buyers Metro Detroit. The National Averages According to Federal Reserve data, the average American household inheritance is around $46,200. But that number is pulled way up by a small number of very large inheritances at the top — the wealthiest 1% of households inherit an average of about $719,000,

Beyond tax rules, there's a whole separate set of deadlines that come up during Michigan probate — and a couple of them do involve the number "2." Here's a rundown from Real Time Home Buyers Metro Detroit of the timeframes executors and heirs actually run into. The 2-Year Creditor Lookback When a personal representative is identifying who counts as a "known creditor" of the estate, Michigan law directs them to look back through the decedent's available financial records for t

This is a phrase that gets searched a lot, and it can mean different things depending on where you're looking or which country's tax system you're reading about. Here's what Real Time Home Buyers Metro Detroit wants Michigan families to know about the "2-year rule" as it applies here in the U.S. The Most Common U.S. Meaning: The Primary Residence Exclusion Under federal tax law (IRC Section 121), a homeowner can exclude up to $250,000 of capital gains ($500,000 for married co

When it comes to who pays capital gains tax on an inherited house, surviving spouses are often in a noticeably better position than other heirs — thanks to a couple of rules that apply specifically to married couples. Here's what makes the spousal situation different, from Real Time Home Buyers Metro Detroit. The Community Property Advantage If a married couple lived in a community property state and owned the home together, the surviving spouse can receive a "double step-up"

The answer isn't always as simple as "the person who inherited it." Who's actually responsible for capital gains tax on an inherited house often comes down to how the property was legally transferred. Here's a breakdown from Real Time Home Buyers Metro Detroit. Transferred Through a Will (Probate) This is the most common path. If the house passes through probate under a will, the beneficiary named to receive the property becomes responsible for any capital gains tax once they

If you're looking at a $350,000 capital gain — whether from selling an inherited house, stock, or another asset — here's a real, numbers-based breakdown of what that could cost you, from Real Time Home Buyers Metro Detroit. (These figures are for a long-term gain, meaning the asset was held more than a year — which inherited property automatically qualifies for, regardless of how long you personally owned it.) Federal Tax on a $350,000 Gain For 2026, long-term capital gains a

When someone asks how much capital gains tax they'll pay on "$350,000," there's an important question hiding underneath: is that $350,000 the amount you're selling for, or the amount you actually profited? These lead to very different tax bills — and mixing them up is one of the most common sources of confusion we hear from families at Real Time Home Buyers Metro Detroit. Scenario 1: $350,000 Is the Sale Price If you sell an inherited house for $350,000, capital gains tax isn

Here's something a lot of people don't realize: whether you owe tax on a $100,000 inheritance can depend entirely on where the person who passed away lived — not where you live. Real Time Home Buyers Metro Detroit put together this breakdown to show just how differently a $100,000 inheritance can be treated depending on state law. The Rule That Matters Most State inheritance tax is based on where the deceased person lived (or where their real estate was located), not on your

If you've just received (or are about to receive) a $100,000 inheritance, it's natural to wonder how big a bite the IRS is going to take. The good news from Real Time Home Buyers Metro Detroit: for most families, especially here in Michigan, the answer is little to nothing. The Short Answer A $100,000 inheritance is well below every threshold that would trigger federal estate tax, and Michigan doesn't have a state inheritance or estate tax at all. So simply receiving $100,000

Deciding to keep an inherited house often feels like the "safe" choice — you're not giving anything up, and the option to sell later is always there. But holding onto a property isn't free, and the ongoing costs are worth running the numbers on before you decide. Here's a closer look, from Real Time Home Buyers Metro Detroit. The Costs That Don't Stop Property taxes. These continue whether or not anyone is living in the home, and they typically increase over time. Insurance.

There's no single right answer to this one — it depends on your finances, your family situation, and how you feel about the home itself. Here's how Real Time Home Buyers Metro Detroit would encourage you to think through the decision. Reasons Families Choose to Keep the Property Long-term appreciation. Real estate tends to grow in value over time, so holding onto a paid-off or nearly-paid-off home can be a solid long-term asset, especially if you don't need the cash right awa

If you've inherited money or property, you may be wondering exactly which parts of the process leave a record somewhere. Here's a closer look at the specific paperwork involved, from Real Time Home Buyers Metro Detroit. The will and probate filing. If there's a will, it typically gets filed with the probate court, along with a petition to appoint an executor. This becomes part of the public court record in the county where the deceased lived. The estate inventory. As part of

A question we hear often from families at Real Time Home Buyers Metro Detroit: "Do I actually have to tell the IRS I inherited something, or will they never know?" Here's how the IRS typically ends up with a paper trail on an inheritance, even though most inheritances aren't taxable. Probate creates a public record. When an estate goes through probate, court filings — including the will, the executor's appointment, and often an inventory of the estate's assets — become part o

You've heard it before: selling an inherited house isn't treated as ordinary income. That's true — but it's worth knowing that even a modest capital gain from the sale can still ripple into other parts of your finances that are based on income. Here's what Real Time Home Buyers Metro Detroit wants Metro Detroit families to keep in mind. Your adjusted gross income (AGI) still goes up. Even though a capital gain is taxed differently than wages, it still gets added into your tot

This is one of the most common questions we hear from families getting ready to sell a property they've inherited: does the sale count as "income" the same way a paycheck or a bonus would? The short answer from Real Time Home Buyers Metro Detroit is no — but there's an important distinction worth understanding before you file. It's not ordinary income. Selling an inherited house doesn't get lumped in with your wages, freelance income, or other regular earnings. The IRS doesn'