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.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Inheriting a house can be a blessing and a burden at the same time. On one hand, you have acquired a valuable asset, but on the other hand, you may be uncertain about what to do with it. If you have inherited a house, you may be wondering what steps you should take next.
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Fort Myers real estate, and we’re looking to buy several houses each month in the Fort Myers Florida 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) Determine the condition of the house.
The first step is to assess the condition of the house. If the house is in good condition, you may want to consider keeping it and renting it out or using it as a vacation home. However, if the house requires significant repairs or renovations, you may want to sell it instead.
3) Consult with a financial advisor.
Inheriting a house can have significant tax implications. It’s essential to consult with a financial advisor to understand your options and make an informed decision. Your financial advisor can also help you understand the tax consequences of selling or keeping the house.
4) Consider your financial situation.
If you decide to keep the house, consider the financial implications of owning it. You will be responsible for property taxes, insurance, and maintenance costs. Make sure you can afford these expenses before making a decision.
5) 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.
6) 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.
7) 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 Fort Myers houses for cash, as-is.
8) 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 Cape Coral investment experience can help you win.
9) Decide whether to sell or keep the house.
Once you have assessed the condition of the house and considered your financial situation, it’s time to decide whether to sell or keep the house. Selling the house may be a better option if you need the money or don’t want the responsibility of maintaining the property. Keeping the house may be a better option if you can afford the expenses and want to generate rental income or use it as a vacation home.
Why You Should Consider Selling to an Investor:
Selling an inherited house can be a complex and emotional process. If you have inherited a house and are considering selling it, you may want to consider selling it to a real estate investor.
Here are some reasons why selling an inherited house to a real estate investor may be a good option.
- Speed of the sale
Real estate investors can often close a sale faster than traditional buyers. They have experience with the buying process and can offer cash for the house, eliminating the need for financing contingencies. This can help you sell the house quickly and move on with your life.
- As-is condition
Selling to a real estate investor can be beneficial if the house needs significant repairs or renovations. Investors will often buy a house in as-is condition, meaning that you won’t have to spend money on repairs or renovations before selling it. This can save you time and money and make the sale process more straightforward.
- Avoiding listing fees and commissions
When you sell a house through a real estate agent, you will typically have to pay listing fees and commissions. Selling to a real estate investor can help you avoid these costs and maximize the value of the asset.
- No need to prepare the house for showings
Preparing a house for showings can be a time-consuming and stressful process. When you sell to a real estate investor, you won’t have to worry about preparing the house for showings or keeping it in pristine condition. This can be a relief, especially if you live far from the property or have other responsibilities to attend to.
- Peace of mind
Inheriting a house can be an emotional and stressful experience. Selling to a real estate investor can provide peace of mind, knowing that the sale process will be straightforward and hassle-free. You won’t have to worry about negotiations, inspections, or contingencies, allowing you to focus on other aspects of your life.