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. We are here to help you
You’re thinking, “Inherited house, what to do?” Should I rent it? Should I sell it? How should I sell it? Do I need to fix it up? What if I don’t have any cash to fix it up and sell it?
You do have options and we are here to help you find the right one for you.
You may have many real estate investors contacting you to buy your inherited house, but [company} is the only who will provide you with our honest opinion about what is best for you. We hope that the option that is best for you, will also create a win/win for us as we have to generate revenue to stay in business, but we are happy just to say that we helped you make an informed decision.
We offer advice if you own an inherited house in Kansas City so you know what options you have before you decide what to do next. We also understand that when there are multiple heirs, what will work for one, will not be what is preferred by all, so we work through that with you and your family members. Below are some tips on what to do.
Inherited 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.
This may sound obvious, but if the person who left you a property also had a mortgage, you have to pay it. If the bank doesn’t get paid, they will take the house. Some banks will allow you to assume the loan, while others may force you to refinance into a new loan. Are you willing and able to continue making those mortgage payments?
2) Consider Renting the house for extra income
You can create some monthly cash flow for yourself if you can effectively manage the property or have the means to hire a professional property manager to handle it for you. Is the extra cash flow worth the extra time you will need to put into the property?
3) Understand what property ownership will cost you.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Do you have money to invest immediately as well as to save monthly to maintain the property?
4) Sell the property.
In order to sell the house for top price you will need to make some repairs, upgrade systems, and update at least the paint and flooring. If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Kansas City 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.
Don’t forget to discuss your inheritance with tax and legal professionals before you take action. There are major property and income tax consequences that will dramatically impact the cost of owning or selling your inherited house.
7) Consider all your options.
There are usually other options available to you besides renting or listing on the MLS. We can help you identify the options that may work for your situation. With our experience and connection to our broad network of experts, you can trust that we will help you through whatever option you choose.
8) Compare a few scenarios.
We’ll help you determine prices for any property if you sold it today without doing any work, the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs).