You’ve just inherited a house; what next? Do you want to move in? Rent it out? Sell it? Keeping, renting, or selling an inherited house is a very personal decision with multiple factors to consider. At MarketPro Homebuyers, we’ve talked a lot of customers through this decision. We’d like to share some tips to help you decide what to do with your inherited home.
The first step in making this decision is gathering information. Be sure to get answers to the following questions so you can make an informed decision:
1. Is there still a mortgage on the property? If yes, is that mortgage traditional or reverse?
2. What’s the current market value of the home? What’s the potential market value after minor repairs?
3. What could the home rent for, either now or with minor repairs?
Once you gather this info, you can start considering these three options and see what’s right for you:
Option 1: Move in.
If you like the inherited home better than where you’re currently living, this option can be a very appealing one.
One important factor here is the mortgage balance. If the balance is low or the house is completely paid off, it’s probably financially smart to move in–especially if you’re currently renting. This is particularly true if you can afford the mortgage payments but can’t qualify for a new mortgage, as federal law makes it easier to assume an inherited mortgage.
If the home is in excellent condition and can fit all the needs of your family, moving in and selling your current home could be a real win.
Option 2: Rent it out.
Keeping the home as a rental property can be a great choice if it’s in good condition with amenities and a location that make it rentable. You likely don’t want to rent out a home that’ll require too much upkeep, as that will eat into your profits and time.
If you choose this option, be prepared to either hire a management company or do the work of being a landlord yourself. Being a landlord is not as easy as it might seem; you need a substantial amount of time, money, and (ideally) skills to dedicate to the property. If you hire out every little repair, your profits may not be worth the stress. Here are some questions to ask yourself as you consider renting out your inherited home.
If you do decide to rent out the home, make sure you’re aware of the signs that it’s time to get rid of a rental property so you can be prepared from the start.
Option 3: Sell it.
Selling an inherited house is the simplest option for some people. We’d recommend selling if you don’t want to be a landlord and you already love where you live. It’s also smart to sell if the home needs major repairs, or if it’s not in a very rentable area. Some properties are just too much of a financial risk, and there’s no shame in deciding that you’re not the right person to deal with a property.
If you do want to sell the house, check out our 6-month plan to sell your home and get ready to declutter, repair, stage, and market the home.
Work with MarketPro.
If prepping the inherited home for sale sounds like more than you’d like to take on, there’s an easier way.
At MarketPro Homebuyers, we buy houses in Maryland, Virginia, Pennsylvania, and Washington, D.C. If you’re selling an inherited house, we’ll give you a fast and fair cash offer for the home just as it is now; no repairs, no inspection, no commissions or fees. Our team will walk you through your quote, including a review of what the home would likely bring on the open market.
If you’re in our service areas, we’d love to show you how easy and stress-free the sales process can be. Contact us today for a no-pressure quote.