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
I Inherited A House, What To Do Next?
Are you among the growing number of individuals who have recently inherited a house? If so, you may feel overwhelmed and ask yourself, “What do I do next?”. You’re not alone. In today’s market, many people are left with homes that they had no prior knowledge or experience managing.
Fortunately, there is help available. From understanding what day-to-day management may be involved to considering whether it’s better to rent or sell – this blog has everything you need to get started on your journey as an accidental landlord of sorts! Read on for our seven steps on how to make the best decisions when inheriting a home!
Now the burning question on your mind is what to do next. Don’t worry; we’ve got you covered.
1) Check the Mortgage
First things first, you need to ensure that the mortgage on the property is paid. If the person who left you the property had a mortgage, you’ll need to repay it to keep the property (unless it was already paid off, which is great!). Some banks may allow you to assume the loan, while others may require you to refinance into a new loan. If you aren’t eligible for the new loan, renting may not be an option.
2) Day to Day Management
The value of your investment is directly proportional to the management skill set of the person in charge of it. If dealing with brokers, maintenance, tenants, rent collection, and other nuances of property management sounds like a hassle, hire a professional or consider cashing out. A better strategy for some is to rent the house for additional income. But be prepared to handle the property and tenant-related issues that may arise.
3) Keep in Mind Ownership Costs
You must bear in mind that property ownership does not come cheap. Most inherited homes require immediate repairs, maintenance, and other major improvements. Hiring a professional property inspector to provide you with a detailed rundown of what needs to be done in the next few years and their respective costs can help you avoid expensive surprises.
4) Consider Selling
If you don’t want to deal with repairs, updating kitchens, enhancing landscaping, and the general clean-up of the property, don’t fret. We are here to buy houses in Pueblo for cash, as-is.
5) Consider the Market Trends
Before you make any decisions, it is essential to assess the market trends carefully. If the market is growing faster than your other investment options, holding onto the property may be the smarter move. You can even opt to use the equity in your property for other investments that outpace the real estate market’s growth rate. However, if you don’t have anything better to do with the money and the neighborhood property values are rising, holding onto the real estate, provided you know how to read the market trends, can be a great investment strategy.
6) Uncle Sam Wants His Cut
Remember, Uncle Sam wants a cut of the action too. Before taking action or making any major financial decision, discuss your inheritance with tax and legal professionals. Substantial property and income tax consequences can enormously impact the cost of owning your investment.
7) Consider All Your Options
It’s also crucial to consider all your options. In some instances, we can assist you in structuring a lease-option agreement that enables you to rent and sell your property at the same time, allowing you to get the best of both worlds. These deals can be complicated, but our Pueblo investment experience can help you find your way.
Finally, it’s important to compare a few scenarios. We can help you determine the current value of any property near Pueblo. This includes selling the property today without doing any work, selling the property at the highest price the market will bear, and the projected value of keeping it as a rental (along with the costs involved).
From taking over an inherited home to selling it, this blog post has given you a comprehensive step-by-step strategy on what to do next if you have inherited a home. Whether it be checking on the mortgage, managing ownership costs, looking into market trends, or paying Uncle Sam – each of these factors should be taken into account for a successful transition in ownership. With so much to consider and the process producing its own set of challenges, the last thing you need is more stress. Don’t worry – we can help make sure that every step of the process goes as quickly and smoothly as possible. Now is your chance to take control and start exploring all your options. Call us today and let’s get started!