First and foremost, we want to express our deepest condolences for your loss. We understand that managing property ownership during such a challenging time can be overwhelming.
You’re probably pondering, “I inherited a house, what should I do with it?”. Should you keep it as a rental, or is selling the better option? And if selling, what’s the best way to go about it?
With numerous options at your disposal, it’s natural to feel a bit lost. But don’t worry; we’re here to assist you. As experienced real estate investors in Sacramento, we’re always on the lookout for properties to buy in the area. Many individuals in your situation contact us, seeking guidance on selling their inherited homes. So, let’s delve into some valuable tips to help you navigate this process.
I Inherited a House, What Comes Next?
Here are some crucial factors to consider that will guide you toward making the right decision:
- Check the Mortgage Status:
It may seem obvious, but it’s essential to determine whether there’s an outstanding mortgage on the property. If the departed individual had a mortgage, you’ll need to address it (unless the property was mortgage-free, which is ideal). Some banks may allow you to assume the loan, while others might require you to refinance with a new one. If you can’t qualify for a new loan, renting the property may not be a viable option.
- The Role of Property Management:
Managing brokers, maintenance, tenants, rent collection, and all the intricacies of property management can be time-consuming. If this isn’t something you want to handle, consider hiring a professional or selling the property. Some heirs opt to keep the house and rent it out for extra income, which can be a sound strategy. Just be prepared for the responsibilities that come with managing tenants and property upkeep.
- Costs of Property Ownership:
It’s rare to inherit a property in perfect condition. Most inherited houses require significant improvements. Consider enlisting a professional property inspector to provide a detailed assessment of what needs to be addressed in the next five years, including estimated costs. Unexpected repairs can be financially burdensome.
- Selling for Top Dollar:
If you’d rather not deal with repairs, kitchen renovations, landscaping upgrades, and overall cleanup, fret not. We buy Sacramento houses for cash, as-is, which can save you a lot of hassle.
- Assess the Market:
Consider whether the real estate market is expected to outperform your other investment options. We can help you evaluate your property’s current value against the long-term benefits of renting. If you have alternative uses for the property’s equity that promise better returns, explore those possibilities. However, if the neighborhood is appreciating, holding onto the investment might be a wise choice, as real estate can be a lucrative investment when you can read the market correctly.
- Tax Implications:
Don’t overlook the importance of discussing the inheritance with tax and legal professionals before making any decisions. There are significant property and income tax consequences that can significantly affect the cost of owning your inherited property.
- Explore All Options:
In some cases, we can assist you in structuring a lease-option agreement, allowing you to rent and sell simultaneously – the best of both worlds. These deals can be intricate, but with our Sacramento investment experience, you can navigate them successfully.
- Compare Various Scenarios:
We’re here to help you evaluate different scenarios. We’ll determine the price of your property if you were to sell it as-is, the highest market price, and the projected value if you decide to keep it as a rental (along with associated costs).
Feel free to reach out to us today at (916) 476-2381 or contact us for more information on how we can provide you with a fair cash offer for your inherited house. We’re here to support you during this challenging time.