The time after inheriting a house can be a very challenging for many reasons, and dealing with property ownership is tough at the best of times.
You are probably saying, “I inherited a house, what to do with this house?” Should I rent it? Maybe I should sell it? How should I sell it exactly (to whom, if it is not fixed for the retail market)?
Indeed, there are several options open for you, and…
… we can help.
We’re experienced investors in Sedgefield area in Newport News real estate, and we’re looking to buy a good number of houses each month in the Sedgefield area in Newport News Virginia area. Each month we get calls from people who have inherited a house and are looking to sell that house… so the details below offer some tips to help you navigate through this.
I Inherited A House, What To Do Next?
Here are several important considerations to help you proceed with the right decision:
1) Make sure the mortgage is paid.
Obvious, right@? Yu’d be surprised, some people feel that the inherited house is not yet theirs or someone else will miraculously pay if off for a while… but if the person who left you a property still had a mortgage to pay (unless it had no mortgage and was paid off, which is amazing, right!), you need to start paying it right away (assuming you want to keep the property, at least for a while). Some banks will allow you to assume the loan, but others may force you to refinance into a whole new loan under your name. If you don’t qualify for a new loan, renting the house out may not be a workable option for you.
2) The investment is only as good as the manager.
If you don’t want to deal with brokers, maintenance, tenants, rent collection/evictions and all the nuances and details of property management, then you’ll need to hire a professional to help you or cash out now (sell the house “as is”). Some people who inherit homes decide to keep the house and rent it for extra income. That’s a good strategy, but what if the house is not in good shape? Also, you just need to be prepared to manage the property and the hassles that can go along with tenants and broken toilets.
3) Property ownership costs money.
It’s rare to see a building or a house that’s been always perfectly maintained. Most inherited houses need some/major improvements.
You may consider hiring a professional property inspector to give you a detailed report on what you’ll need to do within the next three five years, along with the estimated costs you need to pay. Surprises are very, very expensive.
4) Selling a property for top dollar costs money.
If you don’t want to deal with repairs, updating kitchens, bathrooms, roofs, HVAC, improving landscaping and overall cleanup, don’t worry. We buy Sedgefield area in Newport News 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 it out. If you can use the equity in your property in another way that performs better than the real estate market, you should use that equity. 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, but, that’s sometimes like trying to read the stock market.
6) Uncle Sam wants a piece of the action.
Don’t forget to discuss your inheritance with tax/accountants and attorneys before you take action. There are major property & income tax consequences that will seriously impact the cost of owning your investment.
7) Consider all your options.
In certain situations we may be able to help you to create a lease-option agreement that allows you to rent and sell at the same time – capturing good parts of both worlds. These types of deals can be a bit complicated, but our Virginia Beach investment experience can help you win in this type of deal.
8) Compare a few scenarios.
We’ll help you determine prices for your property near Virginia Beach – if you sold it today without doing any work, the highest price the market will bear, and the approximate value of keeping it as a rental (along with the costs, depending on whether or not you want to deal with a Property Management company).