Bereavement is never easy, especially when you’re dealing with the estate of a loved one. Inherited property can be both a blessing and a challenge. Depending on your circumstances and the home’s condition, there are a couple of different options to consider. Determining the most appropriate action to take when you inherit a home can be a complicated process. In this article, we’re discussing the best way to deal with an inherited property.
Options for Dealing with an Inherited Property
How you decide to deal with an inherited property depends on your situation. Options include:
Moving into an inherited property
If you’ve inherited a property you want to move into, the first thing you need to discover is what condition it’s in — and whether it’s worth moving into at all. If the home has been vacant for some time, it will likely need repairs or updates to bring it to current standards and make it safe and comfortable. Depending on the condition of the home, it may make more financial sense to sell it to a cash home buyer rather than fix it up.
In addition, if you inherit a property and are considering moving into it, it’s essential to find out what the property tax consequences are. It’s also important to determine whether you have an obligation to pay estate taxes.
Renting out an inherited property
Similar to moving into an inherited property, before renting an inherited property out, you need to determine what condition it’s in. All states have different landlord-tenant laws, and you must be aware of them before renting out a property. To determine habitability, you’ll need to go through everything – from the roof right down to the appliances. If the property requires any repairs, it’s crucial to complete them before putting it on the rental market.
After repairs, the most significant hurdle landlords face is finding a suitable tenant. The goal is to find a reliable tenant who respects the property. It would be best to prepare yourself for some back-and-forth and potential vacancies. Managing a rental property is time-consuming and expensive, so it’s crucial you’re ready for the commitment.
Listing an Inherited Property
When dealing with an inherited property, most people find the most convenient option is to sell. Before deciding to list an inherited property, you need to find out how much is left to pay against the mortgage. This will help you determine potential sales proceeds and the optimal sales price.
It’s also a good idea to organize a pre-listing inspection and confirm the property’s condition. This proactive approach enables you to identify any potential issues and rectify them before the home goes on the market. Doing this can help avoid any surprises and the risk of losing a buyer during the inspection contingency period.
Selling an Inherited Property to a Cash Home Buyer
Of course, if you want to sell an inherited home quickly, you should consider a cash home buyer. Unlike conventional buyers, cash home buyers are often willing to buy homes as-is. This means you can save time, money, and the inconvenience of listing the property for sale on the open market.
In addition, cash home buyers can generally close much more quickly than a conventional buyer. This is because they don’t need to satisfy the rigorous requirements of a traditional lender, such as Fannie Mae or Freddie Mac. Plus, cash home buyers do not require an appraisal to purchase the property. In fact, most cash buyers can close in 14-days or less!
To learn more about the advantages of selling your home as-is, check out Home Solutions Guide blog post, “Tips for Selling Your Home As-Is.”