What happens when you discover that a relative has left you their home? For many people, it provides the opportunity to move into a house and start a new life. But for many others, it means having the burden of a home that they do not want or know what to do with. That is when selling an inherited house becomes a priority.
But what is the process to sell inherited homes?
The process of selling a home that you have received as an inheritance is basically the same as if you purchased the home with your own money. Ownership is ownership, even with differences in how you obtained the property.
Once you have the deed, then you will have to take the next steps in what to do with the home that you inherited.
- Evaluation
The first step is to take a breath and start the process of evaluating the condition of the home itself. Do not make the decision as to whether sell it or not, but instead find out more about what you now own. What follows are the first steps towards knowing what you have inherited.
- Assessing the property
It is vital so that you know what you have and what the home is worth. You should take this step first because it will take more time compared to discovering what may be owed on the home. The assessment will let you know the condition of the home, what needs to be repaired or replaced if you want to sell, and if it is suitable for renting which is another option.
In most cases, the home you inherited was purchased several years ago at the very least. If you sell the home at a higher price than what it cost when it was acquired, then consider the taxes owed on the difference in prices. A tax attorney may be of considerable assistance in helping you better understand what it owed along with filling out the paperwork.
- Check for Mortgages and Liens
Hopefully, the home you inherited is fully paid off. If not, you will need to know how much on the mortgage is left. Plus, you will need to discover any other liens on the home as well that you might have inherited. The best option is to pay off what is left. But if you cannot afford to keep the home, then you should sell it. This is a case in which you might try to sell the home quickly for cash value to pay the lender and keep the rest.
- Discuss with Other Beneficiaries
If others have a stake in the home, then you will need to discuss all the options. After all, everyone’s signature will be required for any action taken to sell the property. Getting everyone on the same page will not be easy, but it must happen so you can proceed to the next step.
You Know What You Have, Now What to Do
With all the complications of either keeping or selling the property you inherited, it really comes down to four choices.
- Keep It
- Sell It Slowly on the Market
- Sell It Quickly to Investors
- Rent it
This is a decision you will have to discuss with others that are involved, including your family.
- Move in
From a practical standpoint, if moving into the home puts you in a better financial situation, then do it. Especially if the home is already fully paid, has no liens, and is in good shape. This is where the assessment comes in. For those who are currently renting or facing mortgage payments for many years to come, then keeping the home should be a good choice.
- Sell on Open Market
Selling the property slowly means putting on the open market. You can sell the home yourself or have a real estate agent do the work for you. The upside for home that have no mortgages is that you keep all the profit.
The downside is that selling the home in this manner may take several weeks, months, or it might not sell at all for quite some time. If the home needs repairs, that is money out of your pocket as well. Plus, there are the many costs associated with selling a home in this manner, including advertising, closing costs, and the like.
- Sell to Investors
Selling the property quickly means turning to investment groups that advertise themselves as paying cash for homes. They specialize in purchasing homes that need repairs, if the occupants need to move out quickly, or people like you that just want a quick buck. The upside is that selling the home takes a matter of days. There is no advertising cost, no real estate agent’s commission to pay, and often the investors will pay for the closing costs as well.
The downside is that you will get substantially less for the home than if it sold on the open market. You should consider this option if the home needs substantial repairs, has a large mortgage payment due that you cannot pay, or is in a location that makes putting it on the market difficult.
- Rent the Home
Renting the home does offer a steady monthly income. But it also comes with the issues of dealing with tenants. There are the obligations, both with those who occupy the house and in complying with the laws, rules, and regulations of running a rental property.
One option is to hire a company to run the property for you. That way, you can let them handle difficult tenants. But you will make considerably less from the property each month as you pay the company.
The decision you make is not going to be easy, so take enough time to make the best-informed decision that you can. Inheriting a home might be the best thing to happen in your life. Or it could be a considerable burden. Before you make your decision, be sure that you know everything first.
Now you know what options you have when you ask yourself “what should I do with my inherited house”.
If you want more answers, you can contact your local tax or financial expert.
If you are thinking “how can I sell my inherited house fast? we are here to help. Our company buys houses in any condition, so if you inherited a house and plan to sell, or are simply researching your options, call us or leave your information at our website for a no-obligation offer on your inherited house in 24 hours or less. We will work with you regarding your options and your situation.