To begin with, we’re very sorry for your loss. Losing a loved one is an extremely difficult time and inheriting a property can present both emotional and financial distress. You may wonder, “What do I do when I just inherited a house? Do I rent the house? Should I sell the house? And if I sell, how do I sell it?”
There are many open possibilities for you depending on your situation, and we are here to help you explore your options after inheriting a house.
We receive phone calls each month from people looking to sell a house they inherited. The information below can help you determine your options and the process.
What Are My Options After Inheriting a House?
To help you decide, consider the following:
1) Verify that the mortgage payment is current.
While this seems obvious, you are the new owner of the property and are now responsible for the mortgage payments. Some banks will allow you to assume the loan. Others require you to take out a new loan to finance the property. “But what if I don’t qualify for a loan?” Then renting the house will not be a likely possibility.
If, however, the house is paid off and you’d like to keep it, keep in mind the investment brings more responsibilities and management.
2) Determine if managing a property and its challenges are right for you.
Many who inherit a house want to keep it for the extra income of renting out to others. That’s a good approach, but to manage a property, you need to handle the challenges that come with it. Is this the best use of your time?
You may want to consider hiring a professional to manage this venture and not dealing with tenants, collecting rent, maintaining the property, brokers, and all the nuances that comes with managing a property.
3) Decide if the costs of owning and managing a property will keep you financially stable.
Has the property been maintained? Are minor or major repairs needed? Usually, many homes are in need of repairs and enhancements when inherited.
A professional property inspector can give a detailed report on what you will need to change or update within the next five years. They will also give estimated costs which are needed to determine if managing the property is worth the risk and expense.
4) Estimate the costs and length of time in selling a property.
Unless you want to take care of updating bathrooms, various home repairs, remodeling kitchens, replacing windows, improving the landscape, and tackling the overall cleanup – all of which take time and money – don’t let the stress of it all overtake you. This is where we can alleviate these burdens. We buy Wichita houses, as-is, for cash.
5) Determine if the market growth is currently rising and hold on to your investment.
We can help you evaluate the worth of your property versus the long-term benefits of renting out. If you are able to use the property equity in a different way that outperforms the current real estate market, you should jump on that opportunity. If the values are rising in the area, and money is not needed for other priorities, real estate can be a great investment as long as you can read the market correctly to avoid a costly mistake.
6) Remember that Uncle Sam plays a part.
Before taking action, discuss your inheritance with legal and tax professionals. The cost of owning an investment can significantly impact the consequences of property and income taxes.
7) Consider all your choices when inheriting a house.
In some situations, you are able to capture the best of both worlds by renting and selling at the same time. This is a lease-option agreement. While this option is usually complicated, we can help you with our experience in Wichita investments.
8) Compare all your options when inheriting a house.
We can help you establish prices for properties near Wichita and help you review your options: Sell it today at the highest price the market will bear, and give you the estimated value of keeping the home as a rental property along with the estimated costs.