What are your options when you inherit the house of your parents?
The potential for inheritance from your parents’ home to be both a curse and a blessing can be as great as it is to be blessed. You may find yourself suddenly facing a financial burden that you are not prepared for, in addition to the emotional pain of losing a loved one.
There are three options: you can either move in yourself, rent it out, or sell it. Although most experts agree that selling the home is the best choice, each option has its pros and cons. Let’s look at each of these scenarios.
Move into your parents’ home
It all depends on your current situation. This option may be the best if you are able to move and the home you inherit has all the features you desire. You’ll also have equity in case the house appreciates in value after it was bought.
You have the option to assume the mortgage if you move in. Even if the house has been paid off in full, there will still be property taxes and maintenance costs. These additional costs may be more expensive than your budget.
To ensure you don’t end up paying too much for your home, do your research.
Moving in after inheriting your parent’s house may be the best option if the home is sentimental and the timing and location are right for you.
Rent The House Out
Your inherited home can be rented out as a “between” option. You can keep the house without moving in, but you still have the option to sell the property or move in.
Do your research again with the bank to find out if the mortgage is available and how you can get it over. You might find it difficult to find tenants if the monthly rent is higher than the market rate.
The biggest problem with renting out a house is the assumption of the landlord role. Many people don’t have the financial and legal resources to make the commitment. Others have difficulty collecting rent on time.
Tenants who are not trustworthy can be a problem, so letting the house go to the wrong person could cause a lot of problems.
A property management company can be hired to manage your rental properties. However, this may cost you anywhere from 10% to 30% of your total rent.
Renting it out is a great option for those who aren’t ready to sell, but can’t move in to the house.
List The House With an Agent
After inheriting a house from their parents, the most common way to sell it is to sell the home.
Take a look at comparable sales in your area to get an idea of how much you can sell the property for.
When determining how much you will walk away with, be sure to include any realtor commissions (typically 6%)
A home inspector may be worth hiring to inspect the property. This is the step that potential buyers will follow when the house goes on the market. Although it can be costly, hiring a home inspector will save you from unpleasant surprises later.
You can expect the home to sell in six months if it is in good condition and the market is competitive.
You won’t find a buyer if the house is in bad condition. Move-in ready houses are the most sought-after.
There is an alternative option.
Sell For Cash To A Home Buyer
Investors will often buy homes in any condition for a set price.
Working with an investor is advantageous because they can close quickly and instead of needing a mortgage loan from the bank, they can pay cash.
There is no need to inspect the property, pay commission fees or go through a lengthy closing process. This is a great way to quickly sell your house without the hassle of repairs and showings.
Finding a reliable investor is key. A person who is willing to take the time to guide you through the process, without rushing you into signing a contract.
Super Cash For Houses worked with many sellers who had inherited property. We only work with individuals and can close within 30 days.
Call us today at 214-908-1164 if you have recently been given the house by your parents and would like to learn more about selling it to an investor.