First, we understand that this is a difficult time for you, and we extend our condolences for your loss. Dealing with property ownership can be challenging, especially during such circumstances.
If you find yourself asking, “I inherited a house, what should I do with it?” you have options to consider. Should you rent it out? Should you sell it? And if you decide to sell, how should you go about it?
Rest assured, we are here to assist you.
As experienced investors in real estate in Southwest Florida Florida, we are actively seeking to purchase multiple properties each month in the Southwest Florida, Florida area. We regularly receive calls from individuals who have inherited houses and are looking to sell. To help you through this process, we have compiled some valuable tips below.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Ensure the mortgage is fully paid.
One crucial factor to consider when inheriting a property is to verify if there is an outstanding mortgage. If the property still has a mortgage (unless it is completely paid off), you will need to handle it appropriately to retain ownership. Some banks may allow you to assume the existing loan, while others may require you to refinance. If you are unable to qualify for a new loan, renting out the property may not be a viable option for you.
2) The success of your investment relies on an effective manager.
If dealing with brokers, maintenance, tenants, rent collection and all the nuances of property management isn’t the best use of your time, hire a professional to help you or cash out now. Some people who inherit homes decide to keep the house and rent it for extra income. That’s a great strategy for sure. You just need to be prepared to manage the property and the hassles that can go along with tenants and toilets.
3) Property ownership requires financial investment.
It’s uncommon to come across a property that requires no additional investment. Many inherited houses often require significant repairs and renovations.
To avoid unexpected expenses, it’s advisable to hire a professional property inspector who can provide a comprehensive assessment of necessary repairs and estimated costs for the next five years.
4) Selling a property for top dollar costs money.
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Southwest Florida Florida houses for cash, as-is.
5) Determine if the market growth surpasses other investment options
At We Buy Homes in SWFL, we specialize in helping investors assess the current value of their property in comparison to the potential long-term benefits of renting. If you discover that utilizing the equity in your property in alternative investments yields greater returns than the real estate market, it may be wise to explore those options. However, if you find that the neighborhood’s property values are steadily increasing, holding onto your real estate investment can prove to be a lucrative choice. It’s essential to develop a keen understanding of market trends to make informed decisions about your investments.
6) Consider the Impact of Taxes
When it comes to inheriting a property, it’s crucial to consult with tax and legal professionals before making any decisions. There are significant property and income tax implications that can greatly affect the overall expenses associated with owning your investment.
7) Consider all your options.
In specific scenarios, we have the expertise to assist you in creating a lease-option agreement, enabling you to simultaneously rent and sell your property. This unique arrangement combines the benefits of both options, providing you with the best possible outcome. Our extensive experience in Southwest Florida investments positions us to navigate the complexities of such deals and ensure your success.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Naples Florida – 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).