First, we’re so sorry for your loss. This can be a very challenging time for many reasons, and dealing with property ownership is tough at the best of times.
You’re thinking, “I inherited a house, what to do with this house?” Should I rent it? Should I sell it? How should I sell it?
Tons of options open for you, but…
… we can help.
With a wealth of experience and expertise in the dynamic realm of Dallas, Plano, McKinney, or Frisco real estate investment, our team proudly stands as seasoned investors, actively seeking to acquire multiple properties on a monthly basis within the esteemed Dallas, Plano, McKinney, or Frisco, situated in the thriving state of TX. As we consistently receive an influx of inquiries from individuals who have inherited properties and are seeking to sell them, we have compiled a set of invaluable tips and insights below to assist you in navigating through this intricate process. By arming yourself with this invaluable knowledge, you can approach the sale of your inherited property with confidence, ensuring a smooth and successful transaction that maximizes your return on investment.
I Inherited A House, What To Do Next?
Here’s a few important considerations to help you make the right decision:
1) Make sure the mortgage is paid.
While it may seem like a straightforward concept, it is crucial to acknowledge that if the individual who bequeathed you a property had an existing mortgage (unless, of course, the property was completely mortgage-free, which is certainly advantageous), you will be responsible for fulfilling the financial obligations associated with it, provided you intend to retain ownership of the property. Depending on the specific circumstances, certain financial institutions may grant you the option to assume the existing loan, enabling you to continue with the terms established. However, it is worth noting that other lenders might require you to refinance the property, resulting in a new loan agreement. In the event that you do not meet the criteria for obtaining a new loan, the possibility of renting out the property as an alternative investment may not be viable. Hence, it becomes imperative to thoroughly evaluate your financial standing and explore suitable options to ensure the smooth continuation of your ownership of the property, taking into account the potential implications of assuming or refinancing the existing mortgage.
2) The investment is only as good as the 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 costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements.
Consider hiring a professional property inspector to give you a detailed rundown on what you’ll need to do within the next five years, along with estimated costs. Surprises are very, very expensive.
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 Dallas, Plano, McKinney, or Frisco houses for cash, as-is.
5) If the market will continue to grow faster than your other options, hang on to the 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) Uncle Sam wants a piece of the action.
Prior to taking any definitive action regarding your inheritance, it is imperative not to overlook the crucial step of consulting with qualified tax and legal professionals who possess expertise in this domain. Engaging in such discussions will enable you to gain a comprehensive understanding of the intricate tax implications and legal ramifications associated with your inherited property. It is of paramount importance to be cognizant of the significant property and income tax consequences that loom large, as they have the potential to substantially influence the overall cost of owning and maintaining your investment. By seeking the guidance of knowledgeable professionals in these areas, you can make informed decisions that align with your financial goals while ensuring compliance with applicable tax laws and regulations, thus safeguarding the long-term profitability and sustainability of your investment venture.
7) Consider all your options.
In certain situations we may be able to help you structure a leaseback agreement that allows you to rent the home after you sell to save a lot of hassle – capturing the best of both worlds. These kinds of deals can be complicated, but our Melissa investment experience can help you win.
8) Compare a few scenarios.
At our esteemed firm, we are committed to providing you with comprehensive assistance in evaluating property prices in the vicinity of Melissa. Our dedicated team is equipped to guide you in determining the optimal pricing strategy for your property, taking into account various scenarios. Firstly, we can assist you in gauging the potential selling price in the current market, assuming the property is sold in its current condition without any additional improvements or renovations. By thoroughly analyzing market trends and employing our expertise, we can ascertain the highest price that the prevailing market conditions will support. Moreover, we can also project the estimated value of retaining the property as a rental investment, considering factors such as rental demand, projected rental income, and associated costs, allowing you to make informed decisions regarding the viability and profitability of this option. By leveraging our comprehensive analysis and industry insights, we aim to empower you with the knowledge needed to make sound financial choices that align with your goals and maximize the potential returns on your investment.