First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
What to Do When You Inherit a House?
Inheriting a house can be a great opportunity, but it can also be a challenge. There are many factors to consider, such as whether to sell the house, live in it, or rent it out.
Here are some things to think about when deciding what to do with an inherited house:
- Your financial situation: Can you afford to maintain the house? Do you have the money for repairs and renovations?
- Your lifestyle: Do you want to live in the house? Do you need a larger or smaller home?
- Your family situation: Do you have children or other family members who may want to live in the house?
- The location of the house: Is the house in a desirable location? Is it close to work, schools, or other amenities?
- The condition of the house: Is the house in good condition? Will it need major repairs?
Once you have considered all of these factors, you can start to make a decision about what to do with the house. Here are some options to consider:
- Sell the house: This is the most common option. Selling the house can provide you with a financial windfall that you can use to pay off debt, invest, or save for retirement.
- Live in the house: If you can afford to maintain the house and you want to live in it, this can be a great option. You can save money on rent or mortgage payments, and you can build equity in the home over time.
- Rent out the house: If you don’t want to live in the house, you can rent it out to tenants. This can provide you with a steady stream of income, and it can help you to offset the cost of property taxes and maintenance.
No matter what you decide to do with an inherited house, it’s important to consult with an attorney and a financial advisor to make sure that you make the best decision for your individual circumstances.
Here are some additional tips for deciding what to do with an inherited house:
- Get professional advice: As mentioned above, it’s important to consult with an attorney and a financial advisor to get their input on your specific situation.
- Take your time: Don’t feel pressured to make a decision right away. Take some time to think about your options and weigh the pros and cons of each one.
- Be flexible: Be prepared to change your mind if your circumstances change. For example, if you inherit a house that you don’t want to live in, you may decide to rent it out instead.
Inheriting a house can be a big decision, but it can also be an opportunity to create a new chapter in your life. By taking your time, getting professional advice, and being flexible, you can make the best decision for yourself and your family.
Here are some additional tips for selling an inherited house:
- Get the house ready to sell: This includes decluttering, making repairs, and staging the house.
- Hire a real estate agent: A good real estate agent can help you get the best price for your house.
- Set a realistic price: Don’t expect to get top dollar for your house if it’s in need of repairs or if it’s in a less desirable location.
- Be patient: It may take some time to sell your house, especially if the market is slow.
Here are some additional tips for renting out an inherited house:
- Find good tenants: Make sure to screen your tenants carefully to avoid problems down the road.
- Set clear expectations: Be sure to put everything in writing, including the rent amount, the security deposit, and the rules and regulations for the property.
- Be prepared to manage the property: This may include collecting rent, dealing with repairs, and resolving disputes between tenants.
Inheriting a house can be a great opportunity, but it’s important to do your research and make sure that you make the best decision for your individual circumstances. By following these tips, you can increase your chances of success.
, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Raleigh real estate, and we’re looking to buy several houses each month in the Raleigh, NC area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
This may sound obvious, but if the person who left you a property also had a mortgage (unless it had no mortgage and was paid off, which is great!), you have to pay it (assuming you want to keep the property). Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option for you.
2) The investment is only as good as the manager.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Raleigh, NC houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning your investment.
7) Consider all your options.
In certain situations we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Raleigh investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Raleigh – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).