Inherited a house? First and foremost, please accept our deepest condolences for your loss. We understand that this can be a difficult and trying time, and dealing with property ownership only adds to the challenge.
If you’re asking yourself, “I inherited a house, what should I do with it? Should I sell it or rent it out?”, we have some good news: there are a variety of options available to you.
As experienced real estate investors in Belleville, we are constantly seeking to purchase properties in the area. We frequently receive calls from individuals who have inherited a house and are looking to sell, which is why we’ve provided some helpful tips below to guide you through the process.
I Inherited A House, What To Do Next?
Below are some important factors to consider that can help you make an informed decision:
1) Make sure the mortgage is paid.
It may seem like a no-brainer, but it’s important to keep in mind that if the person who left you the property also had a mortgage (unless it was fully paid off), you’ll be responsible for paying it if you wish to keep the property. Some banks may let you take over the existing loan, while others may require you to refinance into a new one. If you’re unable to qualify for a new loan, renting out the property may not be a feasible option.
2) The investment is only as good as the manager.
If managing the property, dealing with brokers, tenants, and maintenance isn’t feasible for you, consider hiring a professional to assist you or selling the property for cash now. While some people who inherit homes may choose to keep the property and rent it out for additional income, it’s crucial to be ready to handle the management and issues that come with tenants and maintenance.
3) Property ownership costs money.
It’s uncommon to find an inherited property that has been perfectly maintained. There may be significant repairs or upgrades that are necessary. To avoid surprises and expenses, it’s advisable to hire a professional property inspector who can provide a detailed report of the necessary repairs, along with estimated costs over the next five years.
4) Selling a property for top dollar costs money.
We understand that making repairs, updating kitchens, improving landscaping and overall cleanup can be overwhelming for some. If you prefer not to deal with these tasks, we offer a solution. We buy houses in Belleville for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the investment.
We can assist you in evaluating the current value of your property compared to the potential long-term gains from renting it out. If you can use the equity in your property for a more profitable investment opportunity than the real estate market, it may be worth considering. On the other hand, if you don’t have any better options and the neighborhood is experiencing growth in property values, holding onto the property can be a wise investment if you have a good understanding of market trends.
6) Uncle Sam wants a piece of the action.
Before taking any action regarding your inheritance, it’s important to consult with tax and legal professionals. The ownership of your investment will have major property and income tax consequences, which can significantly impact its cost.
7) Consider all your options.
If you’re in a situation where you want to rent out your inherited property and sell it at the same time, we can help you structure a lease-option agreement that benefits you. These agreements can be complex, but our experience in Trenton real estate investments can help you come out on top.
8) Compare a few scenarios.
We can assist you in determining the current market value of any property in or near Trenton, including the highest price you could potentially sell it for without making any repairs or improvements. Additionally, we can also estimate the property’s potential value as a rental, taking into account the associated costs and expenses.