Inheriting a property on top of dealing with the loss of a loved one may seem like a huge burden. Or maybe a property was handed down to you from a surviving family member that would rather not take on the responsibility.
Either way, you now have an extra home that you need to decide what to do with. Keep reading to explore your options:
Consult a probate attorney
A probate attorney will be able to help you determine if there are any liabilities with the property.
These can include (but are not limited to):
- Back taxes
- HOA dues
- Specific covenants
Have an inspection done
Just as if you were buying a house, you will want to have an inspection done on the property to make sure everything is in good condition.
This will help to ensure there aren’t any unwanted issues later down the road. Paying upfront for an inspection can save you thousands later on.
Keep or sell?
An inherited property could already be paid off but that is not always the case.
Find out if there is still a mortgage owed on the property. Additionally, there could also be property taxes owed on it as well.
A Property Manager or Real Estate broker will be able to help you look into this.
According to Realtor.com, “The first question is whether the death of the borrower triggers a default under the loan documents or a requirement for the loan to be immediately repaid. If the beneficiary wants to keep the property, then they need to consider whether they have the ability to pay off the loan or whether they have the credit to refinance the property.”
A good place to start will be to determine the current market value for both selling and renting the house.
Turning an inherited property into an investment property can be a smart move if done right. Consult with a Property Management company local to that area to explore your investment opportunity.
On the flip side, you could stand to receive a nice profit by selling the property. You will have to discuss your options with a trusted Real Estate professional to see where you stand to gain the most.
By renting out the home, you give yourself a steady second source of income over time.
By selling it, you will likely reap a decent profit upfront. It is all dependent on the property and your current financial needs.
Whatever decision you choose, always research the right professional to be by your side through it all.