First and foremost, our condolences on your loss. This period can be a very trying time for many reasons, and handling property matters can be challenging even in the best of circumstances.
You’re likely wondering, “I’ve received a house inheritance, what should I do with this property?” Should I rent it out? Should I put it on the market? How do I go about selling it?
We recently posted an article from the USA Today that discussed the subject of inheriting a house. We want to expand on that article with some more information. Know that there are numerous options available to you, and…
… we are here to assist.
We’re experienced investors in DFW real estate, looking to acquire several properties each month in the DFW TX area. We regularly receive calls from individuals who’ve inherited a property and are aiming to sell… so the information below contains tips to aid you in navigating the process.
Here are some crucial considerations to help guide your decision:
- Ensure the mortgage is paid off. This might seem like a no-brainer, but if the person who bequeathed you a property also had a mortgage (unless it was mortgage-free and fully paid, which is fantastic!), you are responsible for it (assuming you want to keep the property). Some banks might allow you to take over the loan, while others might require you to refinance into a new loan. If you don’t qualify for a new loan, renting may not be an option.
- Know your strengths. The quality of the investment relies on the quality of management. If dealing with brokers, maintenance issues, tenants, rent collection, and the complexities of property management doesn’t align with your skills or time, consider hiring a professional or cash out now. Some individuals who inherit properties opt to keep the house and rent it out for additional income. It’s a smart strategy for sure. You just need to be ready to handle the property and the challenges that come with tenants and repairs.
- Owning a property incurs costs. Rarely do you come across a property that has been impeccably maintained. Most inherited houses require significant improvements. Think about hiring a professional property inspector to provide a comprehensive report on what you’ll need to do in the next five years, including estimated costs. Unexpected issues can be incredibly costly.
- Achieving top dollar for a property sale incurs costs. If you’d rather not deal with making repairs, updating kitchens, enhancing landscaping, and overall cleanup, no worries. We purchase DFW properties for cash, in their current state.
- Market forces. If the market is expected to outpace your other options, retain the investment. We can assist you in analyzing the present value of your property versus the long-term benefits of renting. If you can better utilize the equity in your property in another investment that outperforms the real estate market, you should. If there’s no better use for the money and the neighborhood is appreciating, hold on – real estate can be a fantastic investment if you know how to accurately interpret the market.
- Taxes. Taxes. Taxes. Uncle Sam will want a share. Remember to consult with tax and legal professionals before you act. There are significant property and income tax implications that will significantly affect the cost of owning your investment.
- Understand the whole picture. Explore all your options. In certain situations, we might be able to help you arrange a lease-option agreement that allows you to rent and sell simultaneously – getting the best of both worlds. These kinds of deals can be complex, but our Frisco investment expertise can help guide you.
- Partner with local experts. Evaluate various scenarios. We can help you determine prices for any property near Frisco – if you sold it today without doing any work, the maximum price the market
We hope this overview and guide helps out! Or you can just call us today at (214) 833-6269 or contact us now for more information. We would be happy to make you a fair cash offer on your inherited house today!