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.
As experienced real estate investors in the Lagrange market, we actively seek to purchase multiple houses each month in the Lagrange, GA area. We often receive inquiries from individuals who have inherited a house and wish to sell it. The following information provides helpful tips to assist you in navigating the process.
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.
If the property you inherited has an outstanding mortgage, it is necessary to pay it off if you wish to retain the property, unless it has already been fully paid off. Certain banks may permit you to assume the existing loan, while others may require you to refinance it with a new loan. If you are unable to qualify for a new loan, renting out the property may not be a viable option for you.
2) The investment is only as good as the manager.
If you find dealing with brokers, property maintenance, tenants, rent collection, and the complexities of property management to be time-consuming, it is advisable to hire a professional to assist you or consider selling the property for cash. Renting the inherited house for additional income can be a beneficial strategy, but it requires preparation to handle the responsibilities and challenges associated with tenants and property maintenance.
3) Property ownership costs money.
It’s rare to see a building that’s been perfectly maintained. Most inherited houses need major improvements. Whether it was already being used as an investment property & the prior tenants messed the home up, or if it’s mom or grandma’s house that hasn’t been upgraded in 30 years, generally an inherited house is going to need a little work.
To avoid costly surprises, it is advisable to engage the services of a professional property inspector who can provide a comprehensive assessment of the necessary tasks and estimated expenses you may encounter over the next five years. This detailed rundown will help you plan and prepare effectively.
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 Lagrange houses for cash, as-is and would love to make selling the house as smooth & as simple a process as possible.
5) If the market will continue to grow faster than your other options, hang on to the investment.
Our assistance extends to evaluating the present value of your property and comparing it to the potential long-term advantages of renting. If there are alternative opportunities to utilize the equity in your property that offer greater returns than the real estate market, it may be worthwhile to explore them. However, if you do not have alternative plans for the funds and the neighborhood’s property values are appreciating, holding onto the property can be a wise choice. Real estate can prove to be a lucrative investment if you possess the ability to accurately interpret market trends.
6) Uncle Sam wants a piece of the action.
Before taking any action, it is crucial to consult with tax and legal professionals to discuss the implications of your inheritance. There are significant property and income tax consequences that can substantially affect the cost of owning your investment property. Seeking expert advice will help you make informed decisions in light of these considerations.
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 Smyrna investment experience can help you win.
8) Compare a few scenarios.
We can assist you in determining the prices for properties located near Smyrna. This includes evaluating the potential selling price in the current market without making any improvements, as well as estimating the projected value of keeping the property as a rental, taking into account associated costs and expenses.