If you’ve recently inherited a house, you’ve likely been running over the options in your head. Should you keep the house? Should you sell it?
Whether you’re the only heir or one of several heirs, it’s good to consider all your options. This can be a confusing and emotional time, and it’s not always easy to figure out what you want—or to come to an agreement with others.
The three main options when you inherit a house are to live in it, rent it out, or sell it. Let’s take a look.
Option 1: Live in it.
Particularly if the home holds a lot of sentimental value, you or another heir may want to live in it! If there are multiple heirs and only one wants to live there, that heir can buy out the others’ ownership interests.
When considering this option, be sure to consider the condition of the home. We recommend pricing out all needed repairs and desired upgrades. If the house is distressed, you may spend significant time and money preparing it for move-in. If the home is in good condition and the mortgage is paid off or affordable, this can be a very smart choice.
Option 2: Rent it out.
Renting out the house can be a good source of passive income—if things go right. Before deciding to become a landlord, you want to consider the house’s condition, the area’s rental demand, and whether or not you have the cash, time, and desire to be a landlord. You can also consider hiring a management company, but that will significantly cut into any profits.
Just like before, if the home needs significant repairs, make sure to price those out before deciding whether to rent it out. A distressed home can take a long time to be profitable even if you’re able to rent it out relatively quickly, as the revenue will have to pay for the repairs alongside normal upkeep before you make any profit.
Option 3: Sell it.
Selling an inherited house is a common choice, as it can provide a quick financial benefit. The amount of work involved in selling an inherited house varies depending on how you’re selling.
If you’re listing the home on the market, you’ll need to make it move-in ready if you want a quick sale, as distressed houses do not typically sell quickly in this market. You’ll not only have to make necessary repairs, but also do upgrades, declutter, stage, and market the home. Until it sells, you’ll be responsible for any ongoing costs like the mortgage, property taxes, utilities, and other upkeep.
If you’re selling an inherited house to a cash buyer, this can save you a lot of time and money! Even if the house is distressed, you don’t have to make any repairs; you can sell as-is. Selling your house for cash is also much faster than selling to someone who is using financing.
Another major factor is capital gains tax. If you sell at a price higher than fair market value at the time the house was inherited, you’ll need to pay capital gains tax on the amount over the fair market value. You can avoid capital gains tax by selling it in the condition you inherited it in.
If you’re looking for the easiest and fastest option to sell an inherited house, MarketPro Homebuyers is here to help. You can get an offer on your inherited house so that you have all the information you need to make the decision that’s best for you!
Work with MarketPro:
We’ll give you a fast cash offer for your current home just as it is now; no repairs, no upgrades, no inspection, no commissions or fees. You can even choose your exact closing date. Our team will walk you through your quote, including a review of what your home would likely bring on the open market.
If you’re in Washington, D.C., Maryland, Virginia, Pennsylvania or Florida, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a same-day, no-pressure quote.