Inheriting a house can be a blessing to some and a burden to others. While many people decide to move into the home they’ve inherited, others aren’t sure what to do. They’re already processing the emotions of grieving the loss of a loved one. It’s a difficult time as it is. Let alone figuring out what to do with this property you’ve now acquired.
Do you rent it out?
Do you sell and part with a piece of your family’s history?
Skye Homes – cash home buyers in the San Francisco Bay area – get a lot of calls from people who have inherited a house and are wondering what to do next. Although we’re home cash buyers in the Bay area, we can also help you determine the best option for your situation. Here are 7 things to consider if you have to decide between keeping or selling an inherited house.
Is the Mortgage Paid Off? If it Isn’t, You Have to Pay It
Did the person you inherited the property from have a mortgage at the time of their death? If they paid it off and there’s no current mortgage, that’s great! If there’s still a mortgage on the house, it’s your responsibility to pay it. Especially if you intend to move in or rent it out. Some banks may have you assume the loan. Others will require you to refinance into a new loan. It could be problematic if you don’t qualify for a new loan.
If You Want to Rent It Out, Be Prepared for Extra Responsibilities
Many people who inherit a house see an opportunity to rent it out for extra income. Keeping your inherited home as an investment property is a great idea IF you’re prepared to deal with tenants and the hassles of managing the property.
If property management, maintenance, and rent collection aren’t your thing, you could look into hiring professionals to handle those tasks. If you’re unwilling to hire anyone for those services, consider cashing out now by selling your inherited house.
If You Want Top Dollar on the Market, You’ve Got to Put Money Into It
If you’re going to put your home on the market, it’s rare to inherit a property that’s been perfectly maintained and updated. It’s usually a home that’s seen some better days – maybe a few decades ago. You’re going to have to pay for repairs or updates to get your asking price.
If you don’t want to deal with renovations or repairs, remember, we buy houses in the San Francisco Bay area in “as-is” condition.
Your House Can Be on the Market for Awhile
There no telling how long it will take to sell an inherited home. Not everyone is in a situation where they can wait weeks, months, or even a year sometimes. If you put the house on the market, you also have to remember that you’re responsible for the payment of utilities, homeowners insurance, property taxes, lawn care/maintenance, or any existing mortgage until the house is sold.
This is why you need to move swiftly when inheriting a house. Selling directly to a real estate investor is often your quickest option to unload the property in “as is” condition. Otherwise, significant costs can accrue and the home sits vacant at risk of being vandalized.
Property Ownership Is Expensive
Like we mentioned earlier, inherited homes are rarely in stellar condition. Most inherited houses are in need of major improvements. If you opt to either move into the home or rent it out, have a property inspector give you a rundown of the home’s overall condition. It’s important to know how old the roof or furnace is. It’s important to know everything is structurally sound. Property ownership comes with surprises. Surprises can wreak havoc on your bank account or credit line.
What’s the Market Like?
If the area has rising property values, it might be best to hold onto the inherited house for a little while. While it’s certainly understandable that you’d be more inclined to sell if you really need to unload the property or need the money now, investing in real estate is fun. It can also be pretty lucrative. Sometimes a little pause or hesitation will actually reap you a bigger reward if you truly know how to read the market.
The Taxman Cometh & The Taxman Taketh Away
Don’t forget to seek the advice of an attorney when it comes to your inheritance and taxes. Potential property and income tax implications need to be discussed prior to deciding if you’re going to move in, rent, or sell.
Want a Cash Offer On Your Inherited House? Let’s Chat!
It’s important to weigh all of your options when deciding what to do when you inherit a house. If you’ve inherited a home in the Bay area, Skye Homes will be more than happy to share our knowledge of the market with you. We’ll assess the property’s condition. We’ll then help you determine the “as is” cash value, the highest sales price the market will bear, and the projected value and costs of maintaining the home as an investment property.
Call or text us at 510-220-0712 or submit the form at the bottom of this page and we’ll call you!