First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
We’re seasoned investors in Front Royal real estate, and we’re looking to buy several houses each month in the Front Royal VA area. Every month we get calls from those who have inherited a house and are looking to sell the house… so the info below are some tips to help you navigate the process.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
While this may seem self-evident, if the individual who bequeathed you a property had an outstanding mortgage (unless the property was entirely mortgage-free, which is advantageous), you are responsible for its repayment if you wish to retain ownership of the property. Certain banks may permit you to assume the existing loan, whereas others might require you to refinance it into a new loan. If you do not meet the qualifications for a new loan, renting out the property may not be a feasible option for you.
2) The investment is only as good as the manager.
If handling the responsibilities of brokers, property maintenance, tenant management, rent collection, and the myriad intricacies of property management isn’t the most efficient use of your time, it may be prudent to enlist the assistance of a professional or opt to sell the property outright. While some individuals who inherit homes opt to retain the property and lease it out for additional income, it’s undeniably a viable strategy. However, it’s essential to be prepared for the management responsibilities and potential challenges associated with tenants and property maintenance.
3) Property ownership costs money.
It is uncommon to encounter a building that has been impeccably maintained. The majority of inherited houses typically require substantial renovations.
It’s advisable to engage the services of a qualified property inspector who can provide you with a comprehensive assessment of the necessary repairs and improvements anticipated over the next five years, including estimated costs. Unexpected issues can incur significant expenses, emphasizing the importance of thorough inspection and planning.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Front Royal houses for cash, as-is.
5) If the market will continue to grow 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 performance of the real estate market, you should. If you don’t have anything 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 correctly read the market.
6) Uncle Sam wants a piece of the action.
Before making any decisions, it’s crucial to consult with tax and legal experts regarding your inheritance. There are significant property and income tax implications that can substantially affect the overall cost associated with owning your investment.
7) Consider all your options.
Under specific circumstances, we might offer assistance in structuring a lease-option agreement, enabling you to concurrently rent out and sell the property, thereby harnessing the benefits of both scenarios. While these arrangements can be intricate, our extensive investment experience in Linden equips us to navigate them effectively, positioning you for success.
8) Compare a few scenarios.
We are here to assist you in evaluating the pricing considerations for any property in proximity to Linden. This includes determining the potential selling price if you were to sell it in its current condition without making any improvements, identifying the maximum price that the market can sustain, and projecting the property’s value if retained as a rental, accounting for associated expenses.