What Are Your Options With An Inherited Property?
Losing a loved one is a terrible thing. The grief can be overwhelming, especially when it’s a parent. Hopefully they have a last will and testament for how things will be handled after their passing It can make things much easier for you, especially if you have siblings.
There can be a lot of things that need to be addressed after their passing. Final expenses, credit cards, cars, pets, and a host of other things – including a house. In this article we will talk about your options when it comes to a property.
First, if you are reading this and have recently lost a family member, we are truly sorry. If you have inherited a property and want to sell it, we are here for you. We promise to make the entire selling process as easy as possible for you. You can reach us at (770) 756-8680 or visit our site to complete a brief form and we will be in touch shortly.
What Are Your Options?
Really, you pretty much have 3. If all of these are available to you or not are dependent on your individual situation:
- You can move into it
- You can rent it out
- You can sell it
Moving Into The Property
If the house you inherited is nicer than yours, you may want to move into it. This does depend on whether or not you have siblings and you can all agree that it’s okay for you to take ownership of the property. It will also depend on whether or not there is an existing mortgage that will need to paid and you can make the payments.
Lisa Johnson Mandell from Realtor.com explains more:
In the best-case scenario, the property is paid off and comes to you, the sole heir, free and clear. In that case, you’ll be personally responsible only for property taxes moving forward, inheritance taxes (if any), and any repairs and improvements you choose to make.
However, if you’re not the sole heir and inherit the house with, say, your siblings, moving in will also mean compensating the other inheritors (and hoping they aren’t gung-ho to live there, too).
Whatever decision you make, try to base it on a balance of emotional and financial factors: While you may have always dreamed of keeping the place in your family for eternity, if that’s not possible, don’t beat yourself up. Remember, the deceased had meant this inheritance to be a gift rather than a miserable weight on your life. So do what makes sense for you.
Read The Full Article “So You Inherited Property—Now What?“
Lisa makes a good point about the deceased was passing on a gift. Time and time again we have seen siblings squabbling over who was getting what. We also like Lisa’s point of compensating the other heirs if you plan on living there. If you own another property and selling it consider giving you siblings a portion of those proceeds.
Renting It Out
This is also another possibility, especially if you are the sole heir. There are some things you need to ensure to be certain this is a feasible option. What kind of condition is the house in? If it’s newer then you won’t have to worry as much about repairs. If it’s older, than you may have to replace the roof, HVAC system or maybe even new appliances. If there is a mortgage on the property you will have to make sure that the rent covers that.
Then there is the whole aspect of dealing with tenants. They can be demanding. Who wants a call at 3 a.m. with them complaining about they can’t sleep from the noise of the faucet dripping , or they clogged a toilet and it’s over flowing?
There is an alternative to you dealing with them yourself – Property Management Companies.
Tim Jones recently wrote this on the Daily Republic on the subject:
Keeping it can be an investment. You can hire a property management company to manage the tenants, repairs, etc. associated with the house. Ultimately, it could turn out to be a good long-term investment, regardless of whether you ever move into it or not.
The advantage of a professional property management company is that you don’t need to be versed in landlord-tenant law, and don’t need to handle the day-to-day worries.
Read The Full Article “All Things Real Estate: 2 choices with inherited house: keep it or get rid of it“
Property management companies are a great option for taking care of your property and tenants. Some companies will even find and screen the tenants for you. It does come at a price though ranging usually between 6-10% of the monthly rental amount.
Selling The House
This option we run into a lot because, well, we buy houses. Over the years we have purchased multiple probate properties. Just like the other two options you still have to weigh your options. The condition of the property is going to make a difference on how and who you sell the property to. Where the deceased hoarders? Does the house need extensive repairs. Does the property need updating? Hopefully there isn’t more money owed on the property than it’s worth, although this isn’t as common as it was a few years ago.
If the home is in good shape and you have time you can probably list it with an agent. But check out what Christine Bartsch has to say about listing with an agent on Homelight’s blog:
When you’re lost in bereavement and the complexities of probate, it’s natural to look to the familiar—such as hiring your favorite real estate agent. But unless your favorite agent specifically handles probate properties, this is a mistake.
While most probate sales functions similarly to a traditional sale, there are some key differences that require specialized know-how. A probate real estate agent will know how to handle these differences, such as selling a property that requires court confirmation or drafting contracts when the probate property is still in the decedent’s name.
If you don’t live near your inherited property, you’ll need to hire a probate agent who’s local to the property rather than you. This ensures that your agent knows the laws and ordinances of the property’s home state, city and county that may impact your sale.
Read The Full Article “I Just Inherited Property in Probate, What Happens Now?“
Great advice from Christine – be sure your agent is familiar with the probate process in the state the property is located in.
If you are thinking of selling an inherited property read this article “Benefits of Selling A House For Cash”
Here is a video that explains even more indepth about some of the things you may face in selling a probate property;
Summing It Up
Having to deal with an inherited property or probate property is almost never easy. Go through all of your available options and choose which will be best for you. Probably one of the biggest things we can suggest is that you talk things over with your parents before they pass and make sure they have a will so that things won’t be as burdensome for you when they do pass, it’s the responsible thing to do.