First of all — we want to express our sincerest condolences. This must be a challenging time coping with these life changes. Also, dealing with buying and selling property is challenging at the best of times. So, having to decide what to do with a house you inherited is tough.
No doubt you’re thinking: “I inherited a house, what am I going to do with it?” Basically, you have two options:
- Sell an inherited house
- Rent the house to a tenant
If you decide to sell your Kenosha-Racine house, you have to decide how to sell it. When it comes to selling an inherited home, there are a ton of options. And we want to help you choose the best one.
At At Home Buyers, we are experienced investors in Kenosha-Racine real estate. We are looking to buy several houses every month in Kenosha-Racine, Wisconsin. We also have years’ experience of helping folks in the same situation you’re in—needing to sell a home they’ve inherited.
This article is a guide to help you know what to do with an inherited house.
I Inherited a House — What Should I Do Next?
Let’s give you the best advice on dealing with a house that was left to you as part of someone’s estate.
1. Make sure the mortgage is paid
The first thing is to check if there’s a mortgage on the house. If you decide to keep the house, you’ll need to pay off the rest of the mortgage. Of course, it’s great if the house has no mortgage.
Depending on the mortgage lender, they may allow you to assume the loan. Other banks may only give you the option of refinancing the mortgage. Unfortunately, if you don’t qualify for a new loan because of a poor credit score or something similar, renting the property may not be an option.
2. Consider keeping the house as an investment
Renting real estate is an excellent way of earning passive income. However, there is a lot to consider before thinking about getting paying tenants in. Our advice is to hire a professional property manager. Dealing with tenants, maintenance, rent collection can end up consuming most of your time and energy.
3. Owning property costs money
Another deciding factor in keeping an inherited house is that it costs money to maintain it. Usually, inherited houses are in poor condition and need a ton of work done. So, you’ll need to hire a property inspector to let you know the property’s real condition. The inspection can help you work out the estimated costs of bringing the property up to a saleable standard.
Remember, if you decide to rent your inherited property, you will need to make repairs and changes in line with local laws on rental properties.
4. It’s expensive to sell a house for top dollar
If you want to sell your Kenosha-Racine home for the best price possible, you’ll have to invest time, resources, and effort into the property. This means doing all necessary repairs, updating the kitchen, and improving its curb appeal. Many people who’ve inherited a house realize that it’s difficult to recoup this investment.
One option is to sell your house for a fair price in an “as-is” condition. This type of speedy house sale means you don’t have to spend a dime or a minute on house upgrades. We are a trusted company in Kenosha-Racine that buys houses for cash—no matter the condition.
5. The health of the Kenosha-Racine real estate investment market
We can assist you in evaluating your options—if it’s best to sell or rent your inherited house. For example, we can help analyze the long-term benefits of renting. Or, you could use the equity in your property to make wise investments. If you’re not needing the cash from your house, and the neighborhood is rising in value, then real estate can be an excellent investment.
6. Inheritance tax
Before you decide on what to do with your inherited house, you need to take legal advice on the tax implications. It’s vital to be aware of how inheritance tax could affect your property and the cost of owning an investment property.
7. Consider your options
There are other options available if you are unsure what to do with inherited property. For example, we can arrange a structured lease-option agreement. This gives you the best of both worlds—you can rent and sell at the same time.
Lease-option agreements can be complicated. But in Kenosha-Racine, our investment experience can help you.
Selling or Renting an Inherited House: In Conclusion
If you’re in the situation of deciding what to do about a house you’ve inherited, reach out to us. We can help you determine the best price for any property in Kenosha-Racine. We can discuss with you options such as selling your home “as-is,” how to get the highest market price or the projected profits of keeping it as a rental.