Our heartfelt condolences go out to you during this difficult time. The legalities of property ownership can be overwhelming even in the best of circumstances, let alone when dealing with a recent loss.
You’ve just inherited a house and now you’re asking yourself what to do with it. Should you rent it out, or should you put it on the market? If so, how would be the best way to go about selling your home?
With so many paths ahead of you, it can be difficult to decide which one will bring you the most success. Let us help guide your journey and empower you with all that we offer.
At Fast Lane Real Estate, we are experienced investors looking to acquire multiple properties each month. Those who possess a house following inheritance often reach out for help with selling it, and thus here are some helpful tips to guide you through this process.
I Inherited A House, What To Do Next?
Here are a few essential factors to help guide you towards the best decision:
1) Make sure the mortgage is paid.
Unless the property was paid off, you must consider paying any existing mortgage if it is to remain in your possession. The bank may either allow for an assumption of the loan or require refinancing into a new loan; yet, if you are ineligible for a new loan and unable to pay the current one, renting may not be feasible.
2) The investment is only as good as the manager.
If you’re not keen on managing brokers, maintenance, tenants, rent collection and all the other details that come with property ownership, then it’s best to hire someone to help you or sell the property now. Some people who inherit homes opt to keep the house and rent it for additional income. While this is a great idea, you need to be aware of and prepared to handle any potential problems that may arise from having tenants living in your home.
3) Property ownership costs money.
Perfectly maintained buildings are hard to come by, and most inherited structures require considerable updates. To get a better idea of what improvements need to be made during the next five years, along with estimated costs for each, it’s wise to consider hiring an experienced property inspector – after all, being surprised with hefty bills is not ideal.
4) Selling a property for top dollar costs money.
Don’t worry if you don’t have the energy to attend to repairs, kitchen upgrades, landscaping and tidying up. We buy St. Louis homes for cash in their present condition!
5) If the market will continue to grow faster than your other options, hang on to the investment.
By allowing us to assess the current value of your property and compare it to what you could make through renting, we can help you determine whether or not investing in real estate is a beneficial move. If there are more profitable opportunities that exceed the performance of the housing market with your equity, then take those! However, if nothing else strikes as lucrative compared to this investment, and especially if your neighborhood’s values are on an upswing, don’t let go of this chance. Done correctly, investing in real estate can be immensely rewarding.
6) Uncle Sam wants a piece of the action.
Before you make any decisions, be sure to confer with tax and legal professionals regarding your inheritance. Since taxes can drastically affect the cost of owning property or generating income, it is essential that you understand what costs may arise early on in the process.
7) Consider all your options.
When acceptable, we can help you craft a lease-option contract that affords both renting and selling advantages simultaneously. Although these kinds of transactions may be complex, our expertise in St. Louis investing will aid you to succeed.
8) Compare a few scenarios.
Our team of experts is here to help you set the optimal price for any property near St. Louis. We’ll let you know what would be the highest possible amount a person will pay if it was sold as-is, and also forecasted value that can be gained from renting it out or owning it in the long term, including associated costs. If you’re wondering about how the process works, you can read more here!