This can be a challenging time to worry about property ownership. If a friend or family member recently passed away, it may have left you thinking, “I inherited a house, what do I do with it?” Should you keep it? Should you rent it out? Should you sell it? There are a lot of options here, but we can help you figure out what’s best for you. We’re seasoned investors in Stockton real estate with years of experience working with inherited properties. That’s why we’re going to cover some of the most important points to help you navigate the process.
I Inherited a House, What’s Next?
1) Make Sure the Mortgage is Paid
If the person who left you the home had a mortgage (if they don’t and it’s paid off, you’re in great shape!), you inherited that as well. You’ll have to pay it off if you want to keep the property. Some banks let you assume the loan, but others might force you to refinance into a new one. If a new loan isn’t possible for you, renting out the property may not be an option.
2) Get in Touch with Relevant Professionals
If you want to keep the home, you’ll have to deal with the nuances of property management. Getting in touch with brokers and potential tenants alongside dealing with maintenance calls and rent collection can be a lot to handle. You might want to hire help if you intend to rent out the property out for an additional income. If that sounds like too much trouble, you can always cash out using a house buying company like ours for a quick, no-hassle deal.
3) Holding onto the Property is Costly
Most inherited homes are older and in need of significant repairs. Don’t expect your new property to be any different. Unless it was very well maintained, if you want to hold onto it, you’ll need to hire an inspector to tell what you what work needs to be done within the next five years. It’s never cheap, so plan ahead.
4) Waiting for the Best Offer is Costly
If you don’t want to deal with making repairs, updating kitchens, improving landscaping and overall cleanup, don’t worry. We buy Stockton houses for cash, as-is.
This might sound crazy, but it’s true. Holding on to a property for months while you try to find a buyer who will meet your top asking price is very expensive, especially if you’re using a real estate agent to list and show your home. Not only will you have to pay for cleaning and staging services to stay competitive, but you’ll have to put the house through costly renovations and repairs. Even if you managed to sell for a great price, the agent commission, home improvements, and mortgage payments up until the sale could have significantly eaten into the return. Sometimes a fast sale for a good price is better than holding out for the best.
5) If the Market is Promising, Keep it as an Investment
We can help you analyze the value of your property today versus the long-term benefits of renting. If you can use the equity in your property in another way that outpaces the performance of the real estate market, you should. If you don’t have anything better to do with the money and the neighborhood is rising in value, hang on – real estate can be a great investment if you know how to correctly read the market.
6) Give Uncle Sam His Due
Before you take action, make sure you discuss your inheritance with tax and legal professionals. There are pretty hefty property and income tax consequences that can impact the cost of owning your investment. Make sure you understand them.
7) Consider all your options
In certain situations, we may be able to help you structure a lease-option agreement that allows you to rent and sell at the same time – capturing the best of both worlds. These kinds of deals can be complicated, but our Lodi investment experience can help you win.
8) Compare a few scenarios.
We’ll help you determine prices for any property near Lodi – 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).
Tired of wonder what to do if you inherited a house in Stockton? Just call us today at (209) 743-0602 or fill out the form here for a fair cash offer on your property today!