Inheriting a House
Inheriting a house can be an emotional experience, especially if the property was owned by a loved one who has passed away. First, take the time to process your feelings and seek support from family and friends if needed. Then, concentrate on how to sell your house.
Depending on your situation, you may want to consult with a financial planner, accountant, or real estate attorney. These professionals can help you understand your options and make informed decisions about the property and whether you should sell the house you inherited.
To Sell My House or Not to Sell My House?
The good news is that you have options open for you, and
… we can help.
We’re seasoned investors in Denver real estate, and we’re looking to buy several houses each month in the Denver CO area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below includes some tips to help you navigate the process.
I Inherited A House, What To Do Next?
What happens when you inherit a house? Here are a few important considerations to help you make the right decision on whether to ‘sell my house’ or ‘rent my house’ that I inherited.
Confirm your ownership
Make sure you have legal ownership of the property. This may require going through probate court, depending on the laws in your state.
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.
Review the property’s condition
Conduct a thorough inspection of the property to assess its condition. 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.
Determine your financial responsibilities
Consider the costs associated with owning the property, including property taxes, insurance, maintenance, and repairs, as well as potential safety hazards like upgrading an electrical panel, adding a radon mitigation system, or even just putting safety rails in the bathroom.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There may be major property and income tax consequences that will dramatically impact the cost of owning your investment.
If you are thinking about renting, consider…
Who will manage the property?
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. You must be prepared to manage the property and the hassles that can go along with tenants and toilets.
Truilia has an excellent article with more details on renting your house. The article goes into more detail about how to make a financial plan, set a rental rate, have a property management plan, learn how to be a landlord, set policies, write leases, create a marketing plan, screen tenants, and collect security deposits.
If you are thinking about selling the property, consider…
Sell your house for cash fast
If you don’t want to deal with making repairs, updating kitchens, improving landscaping, and overall cleanup, don’t worry. We buy Denver houses for cash, as-is.
Hire a real estate agent
A real estate agent can help you list and market the property. This option will take longer to sell your house, but the advantage is you may get more value from the house you want to sell.
If the market grows faster than your other options, hang on to the investment.
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the real estate market’s performance, you should. If you have nothing better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to read the market correctly.
Compare a few scenarios.
We’ll help you determine prices for any property near Denver – if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs) or listing with a realtor.